In: Finance
Question 13 of 25
Subrogation implies that...
A. the insurer acquires the right to take action against the third party.
B. the insured's rights are placed in the insurer's position.
Question 14 of 25
The proximate cause can be described as...
A. events legally caused what result is an extremely difficult legal problem to prove.
B. the active, efficient cause that sets in motion a train of events that brings about the result, the intervention of any force started and working actively from a new and independent source.
C. the active, efficient cause that sets in motion a train of events that brings about the result, without the intervention of any force started and working actively from a new and independent source.
Question 15 of 25
A competent insurer will not insure a risk that they do not understand, or are insurable. The most correct elements of insurable risk are...
A. homogeneous, measurable, accidental, inevitable.
B. homogeneous, measurable, accidental.
C. fortuitous, avoidable, measurable, definitive
Question 16 of 25
Factors limiting the insurability of risk is...
A. premium loadings, moral hazard and adverse selection.
B. underwriting risk, moral hazard and adverse selection
Question | Answer | Explanation |
13 | a: the insurer acquires the right to take action against the third party | Suppose that an insurer has paid out money to an insured, subrogation enables the insurer to recoup all or some of that money from a third party who caused or contributed to the loss. |
14 | c: the active, efficient cause that sets in motion a train of events that brings about the result, without the intervention of any force started and working actively from a new and independent source | It is the immediate cause and not the remote cause. |
15 | c: fortuitous, avoidable, measurable, definitive | Self-explanatory |
16 | a: premium loadings, moral hazard and adverse selection | Self-explanatory |