General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
An insurance contract is conditional because the insurer's obligation to pay depends on:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The insurer's duty to pay benefits is conditioned on the insured meeting certain requirements: paying premiums, experiencing a covered loss, and giving proper notice and proof of claim. If any condition is unmet, the insurer's obligation does not arise. This 'if-then' structure is what makes insurance a conditional contract rather than an unconditional promise.
Why the other options are wrong
- B) Most claims are paid without litigation; a court judgment is not a general condition.
- C) Notarization is not required to make an insurance contract binding.
- D) The agent does not personally approve payment obligations; policy conditions govern.
Memory hook
Conditions are the ifs: pay premium, suffer covered loss, then benefits flow.