What Is the Liability Faced by an Insurer If It

question 28

Multiple Choice

What is the liability faced by an insurer if it breaches its policy obligations by means of a good faith but erroneous denial of coverage?

• A)Compensatory damages
• B)Punitive damages
• C)Special damages
• D)Liquidated damages

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Definitions:

Finished Goods Inventory

Manufactured products that are complete and ready for sale.

Cost Of Goods Sold

The total direct costs attributable to the production of the goods sold in a company, including materials and labor.

Physical Units

A measure of quantity in production or inventory, typically referred to when counting tangible products or items.

Finished Goods Inventory

A category of inventory that includes items that are ready for sale, having completed all stages of production.