The Personal Feature of Property Insurance Contracts Means That

question 42

Multiple Choice

The personal feature of property insurance contracts means that:

• A) subrogation always applies
• B) ambiguities in the wording will always be construed against the insurer
• C) insurance contracts cannot be freely transferred to other parties
• D) the buyer of insurance must have insurable interest in property before the policy is issued

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Definitions:

Total Variable Cost

The total of all costs that vary with output level in the short run.

Output

The total amount of goods or services produced by a company, industry, or economy within a specific period.

Total Cost

The aggregate cost of producing a given level of output, including both fixed and variable costs.

Output Level

The total quantity of goods or services produced by a firm or industry within a specific period.