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