A Key Consequence of the Designation of Insurance Contracts as Contracts

question 39

True/False

A key consequence of the designation of insurance contracts as contracts of the utmost good faith is the imposition on the insured of a duty to disclose.

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Definitions:

Raw Materials Inventory

The total cost of all components and materials stored and awaiting use in the production process, forming a significant part of a manufacturing company's current assets.

Production Needs

The requirements and resources necessary to complete the manufacturing process for goods or services.

Raw Materials Cost

The expense associated with obtaining the basic materials required for production before any processing or manufacturing is done.

Finished Goods Inventory

The inventory of products that have been manufactured and are ready to be sold to customers.