the contract of life insurance is ? a.) a contract of utmost good faith with insurable interest. b)an indemnity contract. c) one way contract. d) none of the above.
Answers
Answer:
b) an indemnity contract
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Answer:
A contract of utmost good faith with insurable interest.
Explanation:
The idea of insurance was developed in response to uncertainties. In exchange for payment, one party to an insurance contract undertakes to cover the other party's losses at the time of a loss. An insurance contract's indemnification clause protects the insured by placing him/her in the same situation as if the loss hadn't happened. However, life insurance contracts are not covered by the indemnity concept. Therefore, all insurance contracts, with the exception of life insurance, can be described as indemnity contracts.
A contract for life insurance, commonly referred to as a "life assurance," is one where the insurer agrees to pay a specific amount upon the insured's death or at the passing of a specific number of years.
In exchange, the insured agrees to pay a premium in the form of a flat sum or regular payments, which can be made annually, half-yearly, quarterly, or monthly
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