An Important Distinction Between Valid Insurance Contracts and Wagering Contracts

question 47

Multiple Choice

An important distinction between valid insurance contracts and wagering contracts is that:

• A) insurance contracts create a new risk that did not previously exist, while wagering contracts don't.
• B) wagering contracts are not contrary to public policy, while insurance contracts are.
• C) insurance contracts transfer existing risks, while wagering contracts create new ones.
• D) unlike insurance contracts, wagering contracts are indemnity contracts.

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Definitions:

Bones

The rigid organs that constitute part of the vertebrate skeleton, providing structure and protection to the body.

Fine Motor Skills

Physical skills that involve the small muscles and eye–hand coordination.

Button

A small fastener, typically made of plastic, metal, or wood, used to join two pieces of fabric or as a decorative item.

Cut

To make an opening, incision, or wound in something with a sharp-edged tool or object.