Match the descriptions with their terms:
-A contract in which one party might give up a great deal more than is received in the transaction is a/an _________________.
A) aleatory contract
B) Concealment
C) contract
D) Estoppel
E) express
F) insurable interest
G) insurance
H) large-loss principle
I) reasonable expectations
J) representation
K) requisites of insurable risk
L) subrogation
M) utmost good faith
N) waiver
O) warranty

Question

Quizplus · Accepted Answer

An aleatory contract is one in which the performance and obligations of the parties involved depend on an uncertain event. In the context of insurance, this means that one party (the insurer) might end up providing significantly more in terms of payout compared to what the other party (the insured) pays in premiums, especially if a claim is made early in the policy term or if the claim is for a large amount.

Match the Descriptions with Their Terms