When an Agent or Broker Fails to Recommend Appropriate Insurance

question 30

True/False

When an agent or broker fails to recommend appropriate insurance and the buyer suffers a financial loss that could have been prevented or lessened, the agent or broker can be charged with negligence.

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Definitions:

Economic Value Added

A measure of a company's financial performance calculated by subtracting its cost of capital from its operating profit.

Operating Income

Earnings before interest and taxes (EBIT), representing the profit from core business operations excluding non-operating income and expenses.

Economic Value Added

A measure of a company's financial performance based on the residual wealth calculated by deducting cost of capital from its operating profit.

Capital Employed

The total value of all assets used in a business to generate profits, typically calculated as equity plus non-current liabilities.