Why Must an Insured Avoid Acknowledging Liability for a Loss

question 49

Multiple Choice

Why must an insured avoid acknowledging liability for a loss?

• A) because the insurer has a duty to defend
• B) because it could jeopardize the insurer's right of subrogation
• C) because it may result in increased premiums
• D) because it would constitute a breach of the insured's fiduciary duty

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Definitions:

BCG Business Portfolio

A matrix developed by the Boston Consulting Group that helps companies analyze their business units or product lines based on market growth rate and market share.

SBUs

Strategic Business Units, which are divisions or units within a company that focus on specific market segments or product lines, operating with their own planning and profit goals.

Growth-Share Matrix

A strategic business tool used to visually assess a company's product portfolio across growth potential and market share dimensions.

Low Market Growth Rates

Situations in which the increase in sales or size of a particular market is slower than average.