Two Events Are Independent If They Cannot Occur Simultaneously

question 3

True/False

Two events are independent if they cannot occur simultaneously.

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Definitions:

Coinsurance Clause

A provision in an insurance policy that requires the policyholder to bear a portion of the losses to the extent specified in the policy.

Fair Market Value

The price that a knowledgeable, willing, and unpressured buyer would pay to a knowledgeable, willing, and unpressured seller in the market.

Insurance Proceeds

The money received from an insurance claim, which compensates for a loss or damage.

Subrogation Clause

A provision in an insurance policy allowing the insurer to take legal action in the name of the insured against a third party responsible for the insured’s loss.