Policies Contain Cancellation Provisions for All the Following Reasons Except

question 21

Multiple Choice

Policies contain cancellation provisions for all the following reasons except:

• A)the company wants control of the risk after the policy is written in the property liability area
• B)the life insurance company must be able to eliminate the risk in the event the insured accepts a very hazardous job
• C)the insured may no longer need the coverage
• D)a legal method of canceling the contract is needed by both parties in the property liability area

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Definitions:

Income

Payment for services or from investment returns, customarily coming in at steady intervals.

Preferences

In economics, it refers to the ordering of different alternatives by individuals based on their satisfaction, utility, or happiness.

Compensating Variation

A measure in economics of the amount of money one would need to reach their original utility level after a change in price or income.

Equivalent Variation

An economic measure of the amount of money that leaves an individual equally well off, given changes in prices or utility.