Which of the Following Relationships Will Ordinarily Not Create an Insurable

question 14

Multiple Choice

Which of the following relationships will ordinarily not create an insurable interest?

• A) Husband and wife.
• B) Doctor and patient.
• C) Debtor and creditor.
• D) Chief executive officer and corporation.

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Definitions:

Free Entry

A market condition where new participants can enter the industry freely without facing prohibitive barriers to entry.

Zero Profits

A situation in which a company's revenues exactly equal its expenses, resulting in no net income or loss.

Price

The monetary value estimated, obligatory, or presented in compensation for an object.

MC

Short for Marginal Cost, it refers to the increase in cost that arises from producing one additional unit of a good or service.