Aon, a brokerage firm, negotiated with AIG (an insurer) to write a commercial property and liability...

Aon, a brokerage firm, negotiated with AIG (an insurer) to write a commercial property and liability insurance policy for the Metropolitan Transportation Authority (MTA) that is specifically tailored to the MTA's risk profile. This policy, DIFFERENT from most other insurance contracts, is a ____

		Personal contract
		Contract of adhesion
		Valued contract
		Manuscript contract

Expert Solution

Answer: Option C - Valued Contract

Explanation: A valued contract is the contract which pays a predefined about to the insured without considering the extent of loss and the appreciation or depreciation. Since the AIG (insurer) is giving the MTA an insurance based on their risk profile and will pay later but in full predefined amount, it is an example of Value contract.

keosha answered 2 years ago

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