Multidivisional Structures Are Not Good at Allowing for Delegation of Authority,and

question 72

True/False

Multidivisional structures are not good at allowing for delegation of authority,and therefore do not allow divisional and departmental managers a chance to specialize.

---

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.