An Example of a Multi-Peril Policy Is A(n)

question 31

Multiple Choice

An example of a multi-peril policy is a(n)

• A) all-risk policy.
• B) marine policy.
• C) liability policy.
• D) homeowners policy.

---

Definitions:

Property Loss

The term refers to the loss or damage of property due to various risks such as fire, theft, or natural disasters.

Adverse Selection

A situation where asymmetric information leads to the selection of undesirable risks by one party in a contract.

Lemons Problem

A market problem where the quality of goods cannot be accurately determined by the buyer due to asymmetric information, leading to an overall decline in product quality.

Adverse Selection

A scenario where one participant in a transaction possesses superior or more information than the other, frequently resulting in a disadvantageous result for the party with less information.