An Insurer Has a Duty to Avoid Paying a Claim

question 54

True/False

An insurer has a duty to avoid paying a claim even if it means acting in bad faith.

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Definitions:

Comparative Advantage

The proficiency of either a person, a company, or a country in crafting a good or providing a service, which comes at a lesser opportunity cost than that offered by rival parties.

Domestic Demand

The total demand for goods and services within a country's borders.

World Price

The global market price of a good or service, influenced by worldwide supply and demand.