What Is the Consequence of Purchasing Insurance in a Situation

question 110

Multiple Choice

What is the consequence of purchasing insurance in a situation where one does not have an insurable interest?

• A) This will be considered a violation of state blue laws, making the contract unenforceable.
• B) Due to the freedom to contract, the contract will be enforceable in the absence of fraud or other wrongdoing.
• C) The insurance contract will be considered an illegal gambling contract.
• D) The policy holder will have a reasonable period of time to obtain an insurable interest.
• E) There is no consequence, and the policy will be enforced.

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Definitions:

Effective

The degree to which something is successful in producing a desired or intended result; efficiency in achieving goals.

Influence Tactics

Methods or strategies used by individuals or leaders to persuade or guide the behavior and attitudes of others toward desired outcomes.

Power-Influence Approach

A theory in leadership that focuses on how individuals use power and influence to affect the behavior of others.

Behavior Approach

Focuses on what leaders do, how they act and behave toward their followers, and how these actions define leadership effectiveness.