What Is the Legal Test for Determining Whether an Insured

question 18

Multiple Choice

What is the legal test for determining whether an insured had an obligation to disclose a particular fact to the insurer?

• A) Whether withholding the information breached the doctrine of utmost good faith.
• B) Whether withholding the information breached the insurable interest.
• C) Whether withholding the information constituted a breach of the insurance policy.
• D) Whether withholding the information would have influenced the insurer's decision to decline the risk or stipulate a higher premium.
• E) None of the responses are correct.

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Definitions:

Public Goods

Goods that are non-excludable and non-rivalrous, which means that one person's use of the good does not reduce its availability to others, and no one can be effectively excluded from using the good.

Private Philanthropy

Financial contributions or aid given by individuals or private organizations to support various causes and non-profit organizations.

Free-rider Problem

A situation where individuals benefit from resources, goods, or services without paying for them, leading to underprovision of those public goods.

Nonrivalry

A property of goods where one person's consumption does not prevent consumption by others, typically relevant in the context of public goods.