To Prove Fraud,the Following Elements Must Be Shown: 1)The Wrongdoer

question 148

True/False

To prove fraud,the following elements must be shown: 1)The wrongdoer made a false representation of a material fact; 2)The wrongdoer intended to deceive the innocent party; 3)The innocent party unjustifiably relied on the misrepresentation; and 4)The innocent party was injured.

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Definitions:

Adverse Selection

A situation in which asymmetric information leads to the selection of undesirable alternatives in transactions.

Pre-Contractually

Refers to activities, negotiations, or conditions that occur before the formal agreement or contract is signed.

Progressive Insurance

An American insurance company known for providing a wide range of insurance products, including auto and homeowners insurance.

Adverse Selection

A situation where asymmetrical information leads to transactions between parties where the high-risk party is more likely to participate than the low-risk party.