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An Important Distinction Between Valid Insurance Contracts and Wagering Contracts

Question 2

Multiple Choice

An important distinction between valid insurance contracts and wagering contracts is that:


A) insurance contracts create a new risk that did not previously exist, while wagering contracts don't.
B) wagering contracts are not contrary to public policy, while insurance contracts are.
C) insurance contracts transfer existing risks, while wagering contracts create new ones.
D) unlike insurance contracts, wagering contracts are indemnity contracts.

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