General Insurance Flashcards
1
Q
Aleatory Contract
A
A contract where unequal values are exchanged by the parties to the contract
2
Q
Mutual Company
A
Owned by their policyholders. Surplus is distributed back to the policyholders as a non-taxable return of excess premiums
3
Q
The Agreement
A
Consist of an offer by one party and an acceptance of the offer by the other
4
Q
Why is a lfe insurance policy a unilateral contract
A
A contract where only one side (party) makes an enforceable promise. In a life insurance contract this would be the insurer since it is a contract of adhesion drawn up only by the insured
