If an Applicant for Insurance Informs His Broker of All

question 39

True/False

If an applicant for insurance informs his broker of all material facts regarding the risk, and the broker does not pass those facts along to the insurer, it's possible that the insurer can legally deny any subsequent claim.

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Definitions:

Assembly Department

A specialized section within a manufacturing facility where components are assembled into final products.

Step-Down Method

A cost allocation method used in accounting to allocate overhead costs to various cost objects, starting with the department incurring the highest costs.

Service Department Costs

Costs incurred by departments that do not directly produce goods but provide support or services to other units within the organization.

Corporate Law

The body of laws, rules, regulations, and practices that govern the formation, operation, and dissolution of corporations, including their legal rights and obligations.