If an Insured Has Fully Insured the Property with Two

question 32

Multiple Choice

If an insured has fully insured the property with two different insurers:

• A)the insurer with which the policy was first taken out must cover the claim.
• B)the insurer with which the policy was last taken out must cover the claim.
• C)the insurer must make an election as to which insurer to bring the claim with and that insurer can seek a pro rata contribution from the other insurer.
• D)the insured can recover the full amount of the loss from both insurers.

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Definitions:

Liquidity Preference Theory

is the hypothesis that investors prefer to have liquid rather than illiquid assets and will demand higher yields for longer-term securities that are less liquid.

Aggregate Demand Curve

A graph showing the total demand for goods and services within an economy at different price levels.

Aggregate Demand

The total demand for all goods and services within an economy at various price levels, over a specific time period.

Price Level

A measure of the average prices of goods and services in an economy at a given time.