Which of the Following Statements Provides the Best Definition for "The

question 16

Multiple Choice

Which of the following statements provides the best definition for "the insurance principle," as that phrase was used in the text?

• A)Because of the difficulties associated with title searches in registry systems, it is often prudent for the parties to a sale of land to purchase insurance that will provide a source of compensation if the chain of title is not properly established.
• B)The purchaser can sue the vendor for compensation if the vendor fails to provide clear title to land.
• C)Because of the concept of indefeasibility, the land titles system includes a fund that will compensate people who lose their interests in land as a result of a mistake within the land title system.
• D)A lawyer should be hired to help in the purchase of land, partly because the lawyer will have insurance and therefore can be successfully sued if something goes wrong.
• E)A purchaser of land should purchase property insurance that takes effect as soon as title is transferred from the vendor.

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Definitions:

Ratio Scale

A scale where there is a true zero point, allowing for the measurement of ratios between data points.

Proportion

A statistical measure expressing the fraction of a quantity within a whole.

Sample

A subset of a population selected for measurement, observation, or questioning to provide statistical information about the population.

Sample

A group of people or objects chosen from a broader group to conduct statistical studies.