Rory's parents offered to buy him a new car to take to college, but Rory turned them down because he was afraid the car would be stolen or damaged if he
... [Show More] parked it on campus. In deciding not to own a car, what risk management technique did Rory employ? CORRECT ANSWERS: risk avoidance
Which of the following is most likely to be an insurable risk? CORRECT ANSWERS: The chance that a fire will destroy a building
Theodore pays an annual premium to the insurance company that covers many of the risks associated with Theodore's business. What risk management technique is Theodore using? CORRECT ANSWERS: risk transfer
The possibility that a fire will damage Fay's store building is a pure risk. Why? CORRECT ANSWERS: It involves only the chance of a loss.
Esther, an underwriter for QRS Insurance Company, is not able to provide the coverage requested in Benny's insurance application. Esther can reject the application, or she can CORRECT ANSWERS: Make a counteroffer
When applying for a businessowners insurance policy, Brandy did not mention that hazardous and illegal activity that goes on in the backroom of her shop because she realized no insurer that knew about it would insure her business. What is Brandy's failure to disclose this activity considered? CORRECT ANSWERS: Concealment
Haze's store has an automatic sprinkler system that will be activated by a fire. In exchange for the reduced fire insurance premium, she signs a document stating that the automatic sprinkler system will always be in operating condition. What is this statement? CORRECT ANSWERS: A Warranty
Tom's insurance company wanted to deny Tom's claim based on an exclusion in Tom's policy, but Tom and his lawyer convinced the court that the exclusion was ambiguous and did not clearly apply to Tom's case. Because the policy is a contract of adhesion, what will the court do? CORRECT ANSWERS: Rule in Tom's favor
Evangeline bought he home with 20 percent down payment and mortgage from Trevor Bank. She had not yet paid off the mortgage when the home was badly damaged in an explosion. Who had an insurable interest in the home at the time of the loss? CORRECT ANSWERS: both Evangeline and Trevor Bank
For an insurer to pay a property or casualty claim, when must the policyholder have an insurable interest in the insured risk? CORRECT ANSWERS: At the time of the loss
In the context of a property or casualty insurance poli [Show Less]