Which of the Following Is Not a Duty of an Insurance

question 56

Multiple Choice

Which of the following is not a duty of an insurance agent?

• A) Duty to make a profit in the long run for the insurance agency and the insurer
• B) Carefully handling all money and keeping proper records
• C) Carefully conveying all relevant information
• D) Duty not to enrich himself by self-dealing at the principal's expense

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Definitions:

Interest Capitalization

The process of adding unpaid interest to the principal balance of a loan, thereby increasing the total amount owed.

Capital Expenditures

Capital allocated by a corporation to purchase, improve, and manage tangible assets like land, factories, or machinery.

Long-lived Assets

Assets that are expected to provide economic benefits to a company for a period longer than one year, such as buildings or equipment.

Operating Assets

Assets required for a company's core operations and used to generate income, excluding investment and non-operational assets.