Question

question 13 of 15
which of the following best describes the aleatory nature of an insurance contract?
a. policies are issued on a take - it - or - leave - it basis
b. only one of the parties is legally bound by the contract
c. exchange of unequal values
d. ambiguities in the contract are interpreted in favor of the insured

Explanation:

An aleatory contract is defined by an unequal exchange of value between parties, where one party's obligation depends on a contingent event. For insurance, the insured pays small premiums, while the insurer may pay a large claim only if a covered loss occurs. Option A refers to contracts of adhesion, B refers to unilateral contracts, and D refers to the doctrine of contra proferentem.

Answer:

C. Exchange of unequal values