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Commerce · Q396

Insurance

Graduate and Post Graduate · Commerce · question 396

Q396

Which among the following is true regarding life insurance contracts?

A.
They are verbal contracts not legally enforceable
B.
They are verbal which are legally enforceable
C.
They are contracts between two parties (insurer and insured) as per requirements of Indian Contract Act, 1872
Answer
D.
They are similar to wager contracts

Answer: Option C

Solution

Answer: Option C
Solution:
They are contracts between two parties (insurer and insured) as per requirements of Indian Contract Act, 1872 is true about life insurance contracts.