Ace Arkansas Life & Health Insurance 2025 – Secure Your Success!

Question: 1 / 400

A contract that is drafted by an insurer with no input or alteration from the insured is known as a(n):

Contract of Adhesion

A contract that is drafted by an insurer with no input or alteration from the insured is known as a Contract of Adhesion. In such contracts, the insured is in a position of less power compared to the insurer, leading to terms that are typically more favorable to the insurer. This type of contract is offered on a "take it or leave it" basis, with the insured having little to no ability to negotiate or modify the terms. "Contract of Mutual Consent" refers to a contract where both parties have reached an agreement on its terms. "Contract of Negotiation" refers to a contract where parties engage in negotiations to reach mutually agreeable terms. "Contract of Warranty" relates to a type of contract wherein the insurer guarantees the truth of certain statements or promises made by the insured.

Get further explanation with Examzify DeepDiveBeta

Contract of Mutual Consent

Contract of Negotiation

Contract of Warranty

Next Question

Report this question

Download Arkansas Life and Health Insurance Practice Exam PDF Study Guide
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy