The doctrine of reasonable expectations holds that insurance policies will be interpreted in a fashion A....

The doctrine of reasonable expectations holds that insurance policies will be interpreted
in a fashion
A. consistent with the expectations of a reasonable person with legal training.
B. consistent with the expectations of a reasonable person without legal training.
C. consistent with the expectations of a reasonable person with at least a sixth grade
reading level.
D. that provides the greatest benefit to the insurance company

Expert Solution

The doctrine of reasonable expectations holds that IN CASE THERE IS ANY AMBIGUITY the insurance policies , will be interpreted in a fashion, that is consistent with the expectation of a reasonable person without legal training.

The person need not have any legal training.

So, the correct option is option B.

jeff jeffy answered 2 years ago

An insurance company holds fraud insurance policies on 6,000 firms. In any given year the probability...

An insurance company holds fraud insurance policies on 6,000 firms. In any given year the probability that any single policy will result in a claim is 0.001. Find the probability that at least 3 claims are made in a given year. Use the Poisson approximation to the binomial distribution.

Make a reasonable argument for the "Good Samaritan" doctrine as the best approach for this situations

Policies and procedures should be implemented to provide the firm with reasonable assurance that personnel will...

Policies and procedures should be implemented to provide the firm with reasonable assurance that personnel will seek assistance from persons having appropriate levels of knowledge, competence, judgment, and authority. Those policies and procedures would not a. Designate individuals as specialists to serve as authoritative sources and define their authority in consultative situations b. Identify areas in which consultation is required and encourage personnel to consult with or use authoritative sources on other complex or unusual matters. c. Provide for reviewing...

Describe what choices and expectations shaped Kennedy's Cold War foreign policies and how his policies contributed...

Describe what choices and expectations shaped Kennedy's Cold War foreign policies and how his policies contributed to the Cuban Missile Crisis. (Chapter 26).

A life insurance trust is often named the beneficiary of a life insurance policy it holds...

A life insurance trust is often named the beneficiary of a life insurance policy it holds for which of the following reasons? a. It can provide greater flexibility than is available under insurance settlement options b. It can eliminate a second estate tax upon the death of the beneficiaries. c. It can incorporate special limitations and restrictions on the funds designed to be paid to specific beneficiaries. d. All of the above

Allstate insurance and Aetna are fierce rivals in the insurance industry. The output of insurance policies...

Allstate insurance and Aetna are fierce rivals in the insurance industry. The output of insurance policies issued by Allstate is an important factor in Aetna's decision of how many policies to issue (the number of policies that maximize profits). Similarly, the output of insurance policies issued by Aetna is an important factor in Allstate's decision of how many policies to issue (the number of policies that maximize profits). The reaction function for Allstate can be expressed as: Qallstate = 100-0.5(Qaetna)....

A manager of an insurance company goes through the data of insurance policies sold by insurance...

A manager of an insurance company goes through the data of insurance policies sold by insurance salesmen working under him. He finds that 90% of the people who purchase motor insurance are men. He wants to find that if 10 motor insurance owners are randomly selected, what would be the probability that exactly 6 of them are men?

For life insurance policies, some of the premium pays for the cost of the insurance, and...

For life insurance policies, some of the premium pays for the cost of the insurance, and the remainder goes toward the cash value of the policy and earns interest like a savings account. Consider the following insurance company options. Company 1: pays 4.9% compounded monthly on the cash value of their policies Company 2: pays 4.93% compounded semiannually on the cash value of their policies What is the APY offered by each company? (Round your answers to the nearest hundredth.)...

In the past, SHR has relied on a collection of individual policies to communicate its expectations...

In the past, SHR has relied on a collection of individual policies to communicate its expectations regarding compliance with laws, regulations, and internal operating practices. The senior vice president – legal, who also is designated as SHR’s CCO, has determined that the company has grown to a size and operating complexity necessitating an integrated code of ethics and business conduct (the “code”). He has assembled a team consisting of personnel from the legal, human resources, and internal audit functions to...

What rationale does rational expectations theory provide for the ineffectiveness of discretionary policies?

Question