Once an Insurer Has Accepted a Risk, and an Event

question 54

True/False

Once an insurer has accepted a risk, and an event occurs that gives rise to a claim, the insurer has a duty to investigate to determine the facts.

---

Definitions:

Debt-To-Equity Ratio

The debt-to-equity ratio is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities; also known as shareholders' equity.

Unsecured Debt

A type of debt or general obligation that does not have collateral backing and is issued solely based on the creditworthiness and reputation of the issuer.

Credit Standing

An assessment of a person or entity's ability to repay debts, often influenced by past borrowing and repayment history.