After the Personal Auto Policy Has Been in Force for 60

question 24

Multiple Choice

After the Personal Auto Policy has been in force for 60 days (or is a renewal policy) ,all of the following are grounds for the insurer to cancel the policy EXCEPT

• A)nonpayment of premiums
• B)the insured's license to drive is suspended
• C)the insurer discovers material misrepresentation by the insured in the application process
• D)the insured received a traffic ticket

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Definitions:

Time Value

The concept that money available now is worth more than the same amount in the future due to its potential earning capacity.

February Put

An options contract giving the holder the right but not the obligation to sell a specified amount of an underlying asset at a predetermined price on or before a specified date in February.

Call Option

A financial contract giving the buyer the right but not the obligation to purchase a stock, bond, commodity, or other asset at a specified price within a certain time frame.

Exercise Price

The price at which an option holder can buy or sell the underlying security, determined at the time the option is issued.