Which of the Following Would Be a Valid Reason for an Insurer

question 8

Multiple Choice

Which of the following would be a valid reason for an insurer to contest a policy after the contestable period has ended?

• A)The policyholder made a material misrepresentation in the application process.
• B)The insurer's loss ratio is running higher than the insurer anticipated.
• C)The applicant had someone else take the medical examination required for policy approval for her.
• D)The policyholder concealed a material fact at the time of application.

Understand the sources of variance in performance ratings.

Know the appropriate responses to various combinations of work performance and attitudes.

Identify the characteristics of performance coaching within performance management.

Understand the principles of effective coaching.

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Definitions:

Jensen Measure

A performance metric that evaluates a portfolio manager's ability to generate excess returns relative to a benchmark, adjusting for risk.

Risk-Free Return

The return on an investment with zero risk, typically associated with U.S. Treasury securities.

Treynor's Measure

A performance metric for determining how well an investment compensates the investor for taking a risk, considering the risk-free rate.

Risk-Free Return

The theoretical return on an investment with no risk of financial loss.