Ted’s insurance claim was denied by XYZ Insurance Company. When Ted in

Ted’s insurance claim was denied by XYZ Insurance Company. When Ted inquired why the claim was denied, he was told to, “Read the exclusion on page 5 of the policy.” Ted read the exclusion.

In his opinion, the exclusion was poorly worded and vague. If a court of law agrees with Ted’s assessment of the exclusion, Ted may still be able to have his claim paid by the insurer because insurance contracts are
A) personal contracts.
B) unilateral contracts.
C) aleatory contracts.
D) contracts of adhesion.

ANSWER

Answer: D