If the Insured's Circumstances Change During the Term of an Insurance

question 15

Multiple Choice

If the insured's circumstances change during the term of an insurance contract:

• A)They have no obligation to notify the insurer unless the risk under the insurance contract is dramatically changed.
• B)They must tell the insurer if the change minimises the insurance risk.
• C)They must tell the insurer if the change increases the insurance risk.
• D)They must tell the insurer on request even if the change is unlikely to affect the risk.

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Definitions:

Profit-Seeking Decision Maker

An individual or entity focused on making decisions that are expected to result in the highest possible profit.

Entrepreneur

An individual who organizes and operates a business venture, taking on greater than normal financial risks in order to do so.

Business Projects

Specified endeavors undertaken by businesses to achieve specific objectives, often within a set timeline and budget.

Private Owners

Individuals or entities who own private property or businesses and have control over their use and distribution.