100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
BusFin 3300 Exam 2 Questions Correctly Answered & Graded $12.99
Add to cart
Quickly navigate to
Preview
  2.  
  3. BusFin 3300
  4.  
  5. BusFin 3300

Exam (elaborations)

BusFin 3300 Exam 2 Questions Correctly Answered & Graded
 0 purchase
  • Course
  • BusFin 3300
  • Institution
  • BusFin 3300

Purpose of The insurer agrees to pay no more than the actual amount of the loss - Correct Answer To prevent the insured from profiting from a loss - To reduce moral hazard There are three main methods to determine actual cash value: - Correct Answer Replacement cost less depreciation...

[Show more]

Preview 3 out of 27  pages

Document information

  • October 15, 2024
  • 27
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • purpose of the insurer agrees to pay no more than
  • there are three main methods to determine actual c
  • fair market value is the price a willing buyer wou
  • broad evidence rule means that the determination

Written for

  • BusFin 3300
  • BusFin 3300

Seller

avatar-seller
Victoria108

Reviews received

Content preview

BusFin 3300 Exam 2 Questions Correctly Answered
& Graded
Purpose of The insurer agrees to pay no more than the

actual amount of the loss - Correct Answer To prevent the insured from profiting from a

loss

-

To reduce moral hazard



There are three main methods to determine

actual cash value: - Correct Answer Replacement cost less depreciation

-

Fair market value

-

Broad evidence rule



Fair market value - Correct Answer is the price a willing buyer

would pay a willing seller in a free market



Broad evidence rule - Correct Answer means that the

determination of ACV should include all relevant

factors an expert would use to determine the

value of the propert



valued policy - Correct Answer pays the face amount of insurance

if a total loss occurs



Replacement cost insurance - Correct Answer there is no

deduction for depreciation in determining the

,amount paid for a loss



why The insured must be in a position to lose

financially if a covered loss occurs - Correct Answer Purposes:

-

To prevent gambling

-

To reduce moral hazard

-

To measure the amount of the insured's loss

•



An insurable interest can be supported by:

-

Ownership of property

-

Potential legal liability

-

Serving as a secured creditor

-

Contractual rights



When must insurable interest exist for Property and Life? - Correct Answer Property insurance: at the
time of the loss

-

Life insurance: only at inception of the policy



Subrogation - Correct Answer Substitution of the insurer in place of the

insured for the purpose of claiming

, indemnity from a third party for a loss

covered by insurance.



purpose of subrogation - Correct Answer To prevent the insured from collecting twice for

the same loss

-

To hold the negligent person responsible for the

loss

-

To hold down insurance rates



Principle of Utmost Good Faith - Correct Answer A higher degree of honesty is imposed on

both parties to an insurance contract than

is imposed on parties to other contracts



Representations - Correct Answer statements made by

the applicant for insurance



Material - Correct Answer if the insurer knew the true

facts, the policy would not have been issued, or

would have been issued on different terms



Reliance - Correct Answer the insurer relies on the

misrepresentation in issuing the policy at a

specified premium



innocent misrepresentation - Correct Answer a material

fact, if relied on by the insurer, makes the

contract voidable

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Victoria108. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $12.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

69052 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling
$12.99
  • (0)
Add to cart
Added