Which of the Following Need Not Occur in Order for an Insurance

question 4

Multiple Choice

Which of the following need not occur in order for an insurance contract to be formed?

• A)The engagement of an insurance broker by the insured.
• B)The completion of a proposal by the insured.
• C)The payment of a premium by the insured.
• D)The acceptance of the risk by the insurer.

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Definitions:

Decision Tree

A decision tree is a graphical representation used to visualize the choices in a decision-making process, their possible outcomes, chance event results, and resource costs, aiding in analysis and planning.

Graphic Representation

A visual method of displaying information or data, such as charts, diagrams, or maps.

Equal Probability

refers to the principle that every outcome in a given sample space has the same chance of occurring.

Certainty

The state of being sure or confident about something, often used in decision-making scenarios where outcomes can be predicted with high accuracy.