Which of the Following Statements Is True About Exclusions

question 68

Multiple Choice

Which of the following statements is true about exclusions?

• A)Losses caused intentionally by the insured are not excluded.
• B)Wear and tear is included in insurance coverage.
• C)Exclusions encourage adverse selection and moral hazard.
• D)Losses that are not accidental make prediction difficult.
• E)Naturally occurring losses that are expected are not excluded in insurance coverages.

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Definitions:

Suburbs

Residential areas situated on the outskirts of cities and towns, typically characterized by lower population density than urban centers but more than rural areas.

Central Cities

The core urban area of a metropolitan region, often containing the major economic, political, and cultural institutions of that region.

Annexed Outlying Areas

Territories that have been formally incorporated into a country or state but lie outside its primary geographical boundaries.

Ku Klux Klan

A secret society in the southern U.S. that focuses on white supremacy, white nationalism, and anti-immigration, notorious for its violence against African Americans and other groups.