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.

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Definitions:

Fixed Manufacturing Cost

Costs that do not vary with the level of manufacturing output, including rent, salaries of permanent staff, and depreciation of factory equipment.

Modify

Alteration or adjustment to change an existing condition or set of properties.

Indifferent

Having no particular interest or concern; not inclined toward one view, position, or outcome over another.

Direct Fixed Expenses

Costs that are directly associated with a specific department or segment of a business and do not vary with the level of production or sales.