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.

---

Definitions:

Accounts Payable Turnover Ratio

A financial efficiency ratio that measures how many times a company pays off its suppliers during a specific period.

Interest Expense

The cost incurred by an entity for borrowed funds, shown as an expense on the income statement.

Interest Payable

A liability account representing the amount of interest expense that has been incurred but not yet paid by the company.

Current Liability

A liability that is expected to be paid off within a year's time or within the normal operating cycle of a business.