Which of the Following Is a Distinguishing Characteristic of a Duty

question 14

Multiple Choice

Which of the following is a distinguishing characteristic of a duty to disclose?

• A) It is applicable to the point in time the insurance application is made.
• B) It is considered by law to be an insured's ongoing obligation.
• C) It requires the prompt,oral communication of material changes to the insurer.
• D) Compliance automatically adjusts the policy coverage.

---

Definitions:

Profit Margin

A financial metric used to evaluate a company's financial health by revealing the percentage of revenue that exceeds the cost of goods sold.

Investment Turnover

A financial ratio indicating how effectively a company is using its invested capital to generate sales or revenue.

Transfer Price

This refers to the price at which goods and services are traded between divisions within the same company.

Negotiated Price Approach

A pricing strategy where the final sell price of a product or service is determined through negotiation between the buyer and the seller.