What Is the Legal Test for Determining Whether an Insured

question 43

Multiple Choice

What is the legal test for determining whether an insured had an obligation to disclosure a particular fact to the insurer?

• A)Whether withholding the information breached the doctrine of utmost good faith.
• B)Whether withholding the information breached the insurable interest.
• C)Whether withholding the information constituted a breach of the insurance policy.
• D)Whether withholding the information have influenced the insurer's decision to decline the risk or stipulate a higher premium.
• E)None of the responses are correct.

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Definitions:

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs.

Business Cycle

The business cycle refers to the fluctuations in economic activity and growth that an economy experiences over time, marked by periods of expansion and contraction.

Economic Activity

entails the production, distribution, and consumption of goods and services in an economy.

Employment

A situation in which an individual has a paid job.