Which of the Following Statements About the Principle of Insurable

question 34

Multiple Choice

Which of the following statements about the principle of insurable interest is (are) true?
I.It makes it difficult to measure the amount of an insured's loss.
II.It reduces moral hazard.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Group Decision Making

The process of making choices or decisions as a group, rather than individually, often incorporating diverse opinions and expertise.

Fairness

The quality of making judgments that are free from discrimination or favoritism, ensuring equitable treatment for all parties involved.

Effectiveness

A measure of the degree to which objectives are achieved and desired results are obtained.

Strictness

The quality of being rigid and exacting in standards or rules.