Which of the Following Statements Is TRUE with Respect to Insurance

question 24

Multiple Choice

Which of the following statements is TRUE with respect to insurance?

• A)First party insurance and third party insurance may both apply to the same set of events.
• B)The phrase "third party insurance" refers to the fact that an insurance company used an agent to sell a policy to a customer.
• C)The phrase "first party insurance" refers to the fact that the insured party must immediately contact the insurance company after being sued for a type of loss that the insurance policy covers.
• D)Liability insurance imposes a duty of utmost good faith on the insured party,but property insurance does not.
• E)The phrase "self-insure" refers to the fact that a company has purchased an insurance company that covers all of its employees,rather than requiring those employees to individually insure themselves.

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Definitions:

Mean

The mean of a collection of numbers, determined by summing up all the numbers and then dividing by the total number of numbers.

Median

The middle value in a list of numbers sorted in ascending or descending order, effectively separating the higher half from the lower half.

Quotient

The result obtained from dividing one number by another.

Rounded

The process of adjusting a number to its nearest value, often to a specified number of decimal places, for ease of reading or reporting.