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

question 4

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 share the loss.
• 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:

Compound Interest

A method where interest is accrued both on the initial sum either deposited or loaned out, and also on the interest that has built up over prior periods.

Nearest Cent

Rounding an amount to the closest cent (1/100th of a currency unit) based on its decimal value.

Arithmetic Operations

Fundamental arithmetic operations such as adding, subtracting, multiplying, and dividing.

Arithmetic Operations

Fundamental arithmetic functions such as add, subtract, multiply, and divide.