A Partially Disclosed Principal Is Liable to a Third Party

question 30

True/False

A partially disclosed principal is liable to a third party for a contract made by the agent acting within the scope of his or her authority.

Differentiate between various types of insurance contracts and the concept of indemnity.

Analyze the causes and conditions that terminate an insurer's duty to perform under a policy.

Understand the role and implications of coinsurance, pro rata, and other clauses in managing and distributing insurance losses.

Recognize the requirements and conditions for insurable interest in property and life insurance policies.

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Definitions:

Pricing Objectives

The goals that a company wants to achieve through the pricing of its products or services, which may include maximizing profitability, increasing sales volume, or capturing market share.

Core Values

Fundamental beliefs or guiding principles that shape an individual's or organization's decisions, actions, and behaviors.

Profit Equation

A financial formula used to calculate a company's profits, typically represented as Total Revenues minus Total Expenses.

Fixed Cost

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance.