An Insurer Who Wrongfully Refuses to Defend the Insured Is

question 53

Multiple Choice

An insurer who wrongfully refuses to defend the insured is liable for: ______.

• A) breach of contract.
• B) insurance fraud.
• C) the tort of wrongful interference with contractual relations.
• D) the tort of malicious prosecution.

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) for international use.

Deferred Taxes

Taxes that are incurred in one period but are not paid until a future period, often due to timing differences between accounting and tax reporting.

Taxable Entity

A business or individual that is required to pay taxes to a federal, state, or local government.

Permanent Difference

These are differences between taxable income and accounting income that originate in one period and do not reverse over time, affecting taxable income and tax liability.