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A contract of insurance is a ________ agreement.

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Question: A contract of insurance is a ________ agreement.

Options:

  1.  Contingent
  2.  Constant
  3.  Both (1) & (2)
  4.  None of these

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1. Contingent

A contract of insurance is a contingent agreement.

More information:

Contingent contracts are the ones where the promiser performs the obligation only when certain conditions are fulfilled.

In a life insurance contract, the insurer pays a certain amount if the insurer dies under certain conditions.

The insurer is not called to action until the death of the insurer. This is an contingent agreement.

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