Which of the following is NOT a basic characteristic of a property or liability insurance contract?

A property or liability insurance contract typically has several fundamental characteristics that define its structure and function. One of those characteristics is the conditional nature of such contracts, meaning that coverage is dependent on certain conditions being met. For example, the insurance company may only pay a claim if the insured has complied with the terms outlined in the policy, such as timely reporting of a claim or adhering to safety practices.

Another key characteristic is the "actual cash value" provision, which determines the value of the covered property or liability at the time of loss, accounting for depreciation. This method is commonly used to settle claims in a way that reflects the current market value of property rather than its original purchase price.

The abandonment clause is also relevant, as it outlines the responsibilities of the insured when a loss occurs. It prohibits the insured from abandoning property to the insurer after a loss has occurred, thus ensuring that policyholders retain some level of interest in their property.

In contrast, premium adjustment is not considered a basic characteristic of these insurance contracts. While premium adjustments may occur based on various factors throughout the policy term, they do not define the structure of the contract itself. Premiums can be influenced by changes in risk, coverage, or the insured's claims history, but these adjustments are