Asked by Nicholas Alvarez on May 26, 2024
Verified
Quality Insurance Company issues a business liability policy to Rapid River Tours Inc. When an event occurs that gives rise to a claim, the insurer has a duty to
A) investigate to determine the facts.
B) file a suit against the insured so that a court can settle the claim.
C) find a third party on whom to impose liability.
D) refund any unearned amount of the premium.
Business Liability Policy
An insurance policy that protects a company from financial loss resulting from liabilities such as accidents, injuries, or negligence.
Claim
A demand for something as due, particularly money, property, or legal relief, often the subject of legal action.
Insurer Duty
The obligations that an insurance company has toward its policyholders, including the duty to act in good faith and to pay valid claims.
- Identify the range of insurance plans relevant to settings in professional, business, and personal life.
- Examine the responsibilities and duties of insurance firms in the examination and resolution of claims.
Verified Answer
AJ
Allen JonesMay 29, 2024
Final Answer :
A
Explanation :
The insurer's duty when a claim arises is to investigate the situation to determine the facts surrounding the claim. This is essential for assessing the validity of the claim and deciding on the appropriate course of action.
Learning Objectives
- Identify the range of insurance plans relevant to settings in professional, business, and personal life.
- Examine the responsibilities and duties of insurance firms in the examination and resolution of claims.