In Addition to Other Factors, the Increased Use of Technology

question 13

Multiple Choice

In addition to other factors, the increased use of technology and the reduced costs of information transfer from local office to corporate headquarters has:

• A) significantly increased the need for centralized decision making.
• B) only brought about increased costs to decentralization.
• C) reduced needs for middle managers and increased the scope of local decision making powers.
• D) shown that technology has little impact on the centralization issue.

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Definitions:

Utmost Good Faith

A principle of insurance contracts that requires all parties to act honestly and not mislead or withhold critical information from one another.

Insurable Interest

An interest that would result in a loss on the occurrence of the event.

Insurance Policy

A contract between an insurer and policyholder specifying the claims the insurer is legally required to pay.

Co-insurance Clause

A provision in an insurance policy stating that the insurer and the insured will share losses covered by the policy in a specified ratio.