Question 2004 of 303 · California Life-Only Agent Exam

An insurance contract is called aleatory because

Exactly one answer is correct.

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Correct answer to question 2004

  • C: the amounts exchanged may be unequal depending on chance events

Explanation

Aleatory means the outcome depends on uncertain events. The insured may pay a small premium and receive a large benefit, or pay premiums and receive nothing.

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