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:

Value Chain

A model that describes the full range of activities needed to create a product or service, from inception to delivery to the end user.

Leading Indicators

Economic or financial variables that predict future trends and changes in the economy or markets before they occur.

Lagging Indicators

Metrics that follow an event, used to confirm patterns or trends, typically economic, after they have begun to manifest.

Strategic Learning

The process of using performance metrics to verify strategic objective expectations and, if necessary, adjusting them.