In the Course of a Claims Investigation,the Insurer Discovers That

question 35

Multiple Choice

In the course of a claims investigation,the insurer discovers that the warehouse it covers has been used for dynamite storage for the last year. When the policy was first issued four years ago,the insurer agreed to cover it for clothing storage. What does the law typically allow the insurer to do in this situation?

• A)Pay the claim in full.
• B)Pay only a proportion of the claim
• C)Deny the claim
• D)Prosecute the insured for intentional misrepresentation

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Definitions:

Rooting Reflex

An innate reflex in newborns that causes them to turn their head toward a touch on their cheek, facilitating breastfeeding.

Critical Period

A specific timeframe in the development of an organism during which it is particularly sensitive to certain environmental stimuli, with long-lasting effects on future development.

Environmental Influences

Environmental influences involve external factors and conditions that impact an individual's physical, psychological, and social development.

Sensitive Period

A point in development when organisms are particularly susceptible to certain kinds of stimuli in their environments, but the absence of those stimuli does not always produce irreversible consequences.