An Insured Has Noted on Its Insurance Application That Its

question 61

Multiple Choice

An insured has noted on its insurance application that its restaurant has a wood fireplace,but it has omitted to comment that occasionally escaped sparks can cause a fire risk.Why would the insured be considered as having complied with its duty to disclose?

• A) The insured has to be in a position to fully assess the risk.
• B) The insurer has been candid and forthcoming.
• C) The insurer is expected to be worldly wise.
• D) The insured has to show personal judgement.

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Definitions:

Need For Achievement

A psychological trait that drives individuals to seek success and accomplishment in their endeavors.

Managerial Success

The achievement of desired business outcomes and objectives through effective leadership, decision-making, and resource management.

Institutional Power

The authority and influence possessed by an organization, enabling it to control or direct societal or organizational outcomes.

Market Share

The proportion of an industry's sales that is earned by a particular company over a specified time period.