Which of the Following Is Sufficient Condition for Courts to Allow

question 46

Multiple Choice

Which of the following is sufficient condition for courts to allow reformation in a written insurance policy?

• A) The insurer's misunderstanding about a contract term
• B) The insured's misunderstanding about a contract term
• C) A fraud committed by the insurer
• D) An increase in the market value of the insured property

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Definitions:

Direct Cost

Expenses directly linked to the creation of particular products or services, including raw materials and labor.

Indirect Cost

Costs that are not directly attributable to a specific job, product, or activity, often including overhead expenses like utilities and rent.

Indirect Material

Materials used in the production process but cannot be directly traced to a final product, such as lubricants and cleaning supplies used in a factory.

Factory Overhead

Encompasses all indirect costs involved in the manufacturing process, such as utilities, maintenance, and management salaries.