Which of the Following Is True Regarding Whether ABC Insurance

question 25

Multiple Choice

Which of the following is true regarding whether ABC Insurance will be required to provide coverage on the jeep?

• A) ABC will likely not be required to provide coverage on the jeep because Image made material misrepresentations in the renewal of the policy that would have prevented its renewal.
• B) ABC will likely be required to provide coverage on the jeep because any misrepresentations made were innocently made in the belief that the jeep would be returned soon.
• C) ABC will not have to provide coverage because Image did not have an insurable interest in the jeep.
• D) ABC will have to provide coverage unless Bruno had already obtained his own insurance on the vehicle because one vehicle may only be insured under one policy.
• E) ABC will not likely be required to provide coverage because Bruno's new employer was liable under workers' compensation.

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Definitions:

President

The elected head of a republican state or country.

Treasury Bills

Short-term government securities with maturities of one year or less, sold at a discount from their face value.

Market Rate

The prevailing interest rate available in the marketplace for loans or investments, often used as a reference for setting the rates on loans.

Government Securities

Financial instruments issued by the government to finance its expenditures, offering a return in the form of interest payments to investors.