Which of the Following Statements Best Describes the Result When

question 67

Multiple Choice

Which of the following statements best describes the result when an insured under a policy of life insurance has not disclosed to the insurer that he is an avid bungee jumper?

• A)The insured has breached his fiduciary duty to the insurance company
• B)The insured has not breached any duty owed to the insurance company as bungee jumping is legal.
• C)The insured has breached the duty of utmost good faith owed to the insurer.
• D)The insurer can claim punitive damages against the insured for the non-disclosure.
• E)The insurer has accepted the undisclosed risk by virtue of its failure to ask the question.

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Definitions:

Total Revenue

The total amount of money received by a company for its goods or services before any expenses are subtracted.

Total Revenue

The total income generated by a firm from selling its goods or services.

Price Falls

A situation where the market price of a good or service decreases.

Total Revenue

The gross income a company generates from selling products or offering services, before deducting any costs.