Which of the following statements is not true of insurance policies?
A) The basic principles of contract law apply to insurance policies.
B) Insurance companies tend to standardize their policies.
C) Some states forbid standardization of insurance policies.
D) All of these statements are untrue of insurance policies.

Question

Quizplus · Accepted Answer

The statement that some states forbid standardization of insurance policies is not true. In fact, standardization of insurance policies is common and often encouraged for clarity and consistency. Insurance companies tend to standardize their policies to simplify the underwriting process and make it easier for consumers to understand their coverage. Additionally, the basic principles of contract law do apply to insurance policies, making options A and B true statements.

Which of the Following Statements Is Not True of Insurance