As a General Rule,if an Applicant Suffers a Loss After

question 20

Multiple Choice

As a general rule,if an applicant suffers a loss after applying but before the insurer formally accepts the application:

• A) the insurer must cover the loss.
• B) the applicant and the insured must bear the loss equally.
• C) the applicant must bear the loss.
• D) the insurer must cover the loss only if there is no binder.

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Definitions:

Scatterplot

A type of graph used in statistics to visually display and assess the relationship between two quantitative variables by plotting data points on a two-dimensional axis.

Bell-Shaped Curve

A graphical representation of a normal distribution, indicating that most occurrences happen near the mean, with fewer observations noted at the extremes.

Coin Flips

A simple randomization technique or decision-making tool where the outcome of a coin toss is used to choose between two alternatives.

Most Probable

Referring to an event or outcome that has the highest likelihood of occurring compared to other possibilities.