Which of the Following Is Not One of the Typical

question 22

Multiple Choice

Which of the following is not one of the typical duties of an insured in connection with an insurance policy?

• A) duty to pay premiums
• B) duty to notify the insurer promptly with respect to any claims
• C) duty to exercise reasonable care in connection with the risks insured
• D) duty to cooperate with the insurer in the investigation of claims
• E) duty to provide complete and accurate information in the application for insurance

Recognize the classification of insurance based on risk nature and the effect of state law on insurance contracts.

Understand the principles of insurance policy distribution and the proportions of liability with multiple insurers.

Grasp the nature of the agency relationship in the insurance industry and fiduciary duties.

Learn about the contractual elements of insurance including insurability, insurable interest, and the enforceability of insurance contracts.

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Definitions:

Highly Inelastic

Describing a situation where the quantity demanded or supplied changes very little in response to changes in price.

Quantity Demanded

The amount of a product consumers are willing to buy at a specific price, differentiating from the total market demand.

Relatively Inelastic

Relatively inelastic describes a scenario where the demand or supply for a product changes only slightly in response to changes in price.

Unitary Elasticity

A situation in which the percentage change in quantity demanded or supplied is equal to the percentage change in price.