In Which One of the Following Would Joe Be Able

question 2

Multiple Choice

In which one of the following would Joe be able to collect the entire amount of insurance claimed?

• A) Joe insured his law partner's life for $500,000 and the amount he actually lost when the partner died was only $100,000. Joe claims $500,000.
• B) Joe's house suffers $20,000 damage, and he only had it insured for $100,000, when the actual value was over $250,000. Joe claims $20,000.
• C) Joe owns a one-half interest in a house valued at $100,000 that is completely destroyed in a fire. The house is insured for that amount and Joe makes a claim for $100,000.
• D) Joe insured the club house of a Hell's Angels motorcycle club located in the next block for $75,000; the house is valued at about that amount. The club house is subsequently destroyed in a fire. Joe claims $75,000.
• E) Joe took out a life insurance policy on his wife for $500,000, and shortly thereafter, during a fight when he was in a drunken rage, he struck his wife, causing her death. Joe claims $500,000.

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Definitions:

Rich Medium

Communication channels with the capacity to convey messages in a more understanding and effective manner through immediate feedback, multiple cues, and personalization.

Grapevine Distortion

The alteration or misinterpretation of messages as they pass through informal communication channels within an organization, often leading to misinformation.

Media Richness Hierarchy

A concept categorizing communication media according to their capacity to effectively convey information, ranging from rich media like face-to-face interactions to lean media like text messages.

Media Richness

refers to the ability of a communication medium to effectively convey information and promote understanding.