The 2005 PAP States That the Insurer Has No Duty

question 12

Multiple Choice

The 2005 PAP states that the insurer has no duty to provide coverage if the insured fails to comply with certain listed duties. In practice, however, the insurer is only relieved of its duty to provide coverage if

• A) the insured was unaware of the listed duties.
• B) failure to comply with the duties is prejudicial to the insurer.
• C) the claim involves bodily injuries of more than $50,000.
• D) the claim occurred in another state.

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Definitions:

Assembly-Line System

An efficient manufacturing process where a product is assembled step by step in a sequential manner by workers stationed at fixed positions.

Uniform Products

Goods that are produced to be identical in quality and performance, ensuring consistency across all units.

Global Economy

An interconnected marketplace where goods, services, and labor are exchanged on a worldwide scale.

Competitive Advantage

The unique attributes or circumstances that allow an organization or individual to outperform its competitors.