Arkansas Insurance Adjuster Practice Exam

A contract of warranties refers to a contract where one party guarantees the other party that certain facts or conditions are true. This is not applicable to insurance contracts. A contract of promises refers to a contract where both parties make binding commitments to each other. While insurance contracts do involve commitments, they are more specifically contracts of utmost good faith. This means that both parties are expected to disclose all relevant information truthfully and without hiding anything. Finally, a contract of truthfulness is not a legal term and does not accurately describe insurance contracts. Therefore, the correct answer is C utmost good faith.