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:

Life Expectancy

The average number of years that a person or animal can expect to live, based on statistical averages for a population.

Hispanic Females

Women who identify with Hispanic culture, which includes individuals of countries where Spanish is spoken, particularly in Latin America and Spain.

United States

A country located in North America, comprising 50 states, a federal district, five major self-governing territories, and various possessions.

Semantic Memory

A component of long-term memory that processes ideas and concepts not drawn from personal experience, encompassing knowledge of facts, meanings, and language usage.