An Insured Has Noted on Its Insurance Application That Its

question 61

Multiple Choice

An insured has noted on its insurance application that its restaurant has a wood fireplace,but it has omitted to comment that occasionally escaped sparks can cause a fire risk.Why would the insured be considered as having complied with its duty to disclose?

• A) The insured has to be in a position to fully assess the risk.
• B) The insurer has been candid and forthcoming.
• C) The insurer is expected to be worldly wise.
• D) The insured has to show personal judgement.