If a Material Change in Risk Occurs After a Fire

question 48

Essay

If a material change in risk occurs after a fire insurance policy has been entered into,what must the insured do in order to maintain his or her coverage? When this occurs,what options does the insurer have?

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Definitions:

Labor Supply

The total hours that workers wish to work at a given wage rate, or the workforce available for employment.

Payroll Tax

Taxes imposed on employers and employees, calculated as a percentage of the salaries that employers pay their staff, used to fund social security and other government programs.

Corporate Income Tax

A tax imposed on the net income (profit) of corporations, calculated at a corporate tax rate.