Stella Blue gets in a serious car accident 2 months after buying a new policy and only paying $700 in premiums. Her insurer had to pay $500,000; this is an example of what type insurance contract characteristic?

Question

Mathematics

Bogey

29 September, 12:01

Stella Blue gets in a serious car accident 2 months after buying a new policy and only paying $700 in premiums. Her insurer had to pay $500,000; this is an example of what type insurance contract characteristic?

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Arthur · Answer 1

Aleatory

Step-by-step explanation:

This is an example of Aleatory type of insurance contact.

Definition:

A contract preoccupied with an unclear occurrence that delivers for imbalanced transfer of worth between the parties. Insurance plans are discretionary investments and, after sustaining a reported loss, a person must pay premiums for many years. Most insurance policies are aleatory contacts.