Which of the Following Statements Is Incorrect

question 17

Multiple Choice

Which of the following statements is incorrect?

• A) Insurance provides a payment to the insured under conditions specified by the insurance policy contract.
• B) Individuals who are less exposed to specific conditions that cause financial damage are more likely to purchase insurance against those conditions.
• C) Insurance can cause the insured to take more risks because they are protected.
• D) Insurance companies employ underwriters to calculate the risk of specific insurance policies.

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Definitions:

Escape

The act of breaking free from confinement or restraint, often used in the context of escaping from prison or custody.

Agent's Crime

Illegal acts committed by an individual (agent) acting on behalf of another party.

Scope of Employment

The range of activities an employee is reasonably expected to do as part of their job.

Principal

A person or entity who authorizes another (the agent) to act on their behalf, often in a legal or business context.