Asked by Adison Evans on Jun 14, 2024
Verified
Defenses of the insurer include:
A) misrepresentation.
B) judgment pro rata.
C) judgment pro norma.
D) revelation.
Misrepresentation
A misrepresentation of truth by one individual to another that leads to the latter being persuaded into agreeing to a contract.
Insurer
A company or entity which provides insurance coverage to individuals or organizations against potential losses or damages.
Defenses
Legal strategies and arguments used in court to negate, justify, or excuse alleged criminal or civil liabilities.
- Identify the importance of insurable interest and lawful defenses in insurance contracts.
Verified Answer
KO
Krystle OcampoJun 19, 2024
Final Answer :
A
Explanation :
Misrepresentation is a valid defense for an insurer. It refers to false statements or lies that an applicant may make on their insurance application. If these falsehoods are discovered, the insurer may use them as a basis to deny claims or void the policy.
Learning Objectives
- Identify the importance of insurable interest and lawful defenses in insurance contracts.