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NSVT Module 3 Practice Exam
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A policy provision is ambiguous, and the insurer drafted the wording. Which contract characteristic most strongly supports interpreting the ambiguity against the insurer?
Contract of adhesion
Aleatory contract
Valued contract
Unilateral waiver
Reveal Answer
Correct Answer:
Contract of adhesion
Explanation:
Insurance policies are generally contracts of adhesion because the insurer drafts the standard wording. Genuine ambiguities are generally construed against the drafter.
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