question 21 of 60 over 10 years, a policyowner paid $30,000 in premiums for insurance coverage. after…

question 21 of 60 over 10 years, a policyowner paid $30,000 in premiums for insurance coverage. after suffering a loss covered by the policy, the policyowner received $50,000 in benefits. what characteristic of an insurance contract does this describe? a. adhesion b. aleatory c. conditional d. unilateral

question 21 of 60 over 10 years, a policyowner paid $30,000 in premiums for insurance coverage. after suffering a loss covered by the policy, the policyowner received $50,000 in benefits. what characteristic of an insurance contract does this describe? a. adhesion b. aleatory c. conditional d. unilateral

Answer

Brief Explanations:

An aleatory contract is one where the values exchanged by the parties are not equal and depend on an uncertain event. In this case, the policy - owner paid $30,000 in premiums over 10 years and received $50,000 in benefits after a loss. The outcome (receiving benefits) was uncertain when the premiums were paid. An adhesion contract is one where one party has little to no bargaining power. A conditional contract has performance contingent on certain conditions. A unilateral contract is one where only one party makes a promise. Here, the nature of unequal and uncertain exchange points to the aleatory characteristic.

Answer:

B. Aleatory