Janet Hit a Wall Causing a Large Dent in the Fender

question 47

Multiple Choice

Janet hit a wall causing a large dent in the fender of her car.She was busy at work and delayed reporting the damage to her insurer for 9 months.When she finally reported the claim,her insurer denied payment,stating,"Although such a loss is usually covered,you are required under the terms of the contract to provide prompt notification in case of loss." The prompt notification requirement is an example of a(n)

• A)declaration.
• B)definition.
• C)insuring agreement.
• D)condition.

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Definitions:

Expected Rate

The predicted average rate of return or growth over a specific period of time.

Total Investment

The sum of expenditures on capital assets, plus the change in inventory levels, within an economy over a period of time.

Market Rate

The prevailing price or interest rate available in the marketplace for goods, services, or financial assets.

Interest

Interest is the cost of borrowing money, typically expressed as a percent of the amount borrowed, paid by the borrower to the lender.