ACA State farm (100% Correct Answers)

All of the following describe insurable interest EXCEPT: A.Insurable Interest must exist at the time of the loss. B.Insurance Interest must exist for insurance to respond C.Show a similarity between insurance and wagering. D.The insured would suffer an economic loss. correct answers Show a similarity between insurance and wagering. An Insurance Policy is a contract with all of the following characteristics, EXCEPT A. It is a personal contract. B. Parties are of unequal power with ambiguities or unclear wording resolved in favor of the insured because it is a contract of adhesion C. There are conditions imposed upon both the insurer and insured. D. Indemnity is not part of an insurance contract. correct answers D. Indemnity is not part of an insurance contract. An insurance contract may contain a "gray area" or an ambiguity, that is generally resolved in favor of the insured because insurance policies are contracts of: A.Indemnity B.Cohesion C.Adhesion D.Conditions correct answers C.Adhesion If an insured sells his car to another person, the buyer may be prohibited from also receiving the insured's policy. This is because the insurance contract is a contract of: A.Personal nature B.Indemnity C.Adhesion D.Actual cash value correct answers A.Personal nature Strict or absolute liability: A.applies to school systems. B.must have failure to use "due care." C.considers the actions of a prudent person. D.is assigned by law or statute. correct answers D.is assigned by law or statute. Jack and Connie - both 50 years old and of sound mind - agree to have Jack burn down Connie's house for $10,000. What element of a valid contract is missing? A.Legal purpose B.Competent parties C.Consideration D.Agreement of the parties correct answers A.Legal purpose Risks that are insurable are: A.Speculative risk