Q203
All of the following are elements of a valid contract, except
A.
Offer and acceptance
B.
Capacity to pay premiums
AnswerC.
Consideration
D.
Capacity of the parties
Answer: Option B
Solution
Answer: Option B
Solution:
All of the following are elements of a valid contract, except Capacity to pay premiums. It is calculated as the total value of all claims paid by the company divided by the total amount of premium collected in a financial year.