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lesya692 [45]
3 years ago
9

Insurance policies often contain a covenant of good faith and fair dealing. Even if the clause is not in the policy, often court

s will imply it. Explain the covenant of good faith and fair dealing and provide an example illustrating when an insurance company might breach this covenant.
Business
1 answer:
Oxana [17]3 years ago
6 0

Answer:

The <em>covenant of good faith and fair dealing</em> simply requires all the parties to a contract to deal in an even-handed manner such that one party's action does not frustrate the other or prevent the other from getting the benefits of that contract.

In insurance, this covenant is sometimes captured under the heading <em>Uberrima fides</em>. This is a Latin phrase meaning <em>"Utmost Good Faith".</em>

In insurance, this covenant is legally binding on all parties to ensure they each reveal every information that is material to the acceptance or rejection of the risk (on the part of the Insurer) whilst on the part of the Insured the insurer is required to be explicit regarding the terms of the policy as well as the calculations by which the premium is arrived at.

For example, if an Insurance company is looking at covering someone under it's Life Insurance Policy, the person taking out the contract must disclose whether or not the Insured has any latent health issues which might shorten their lifespan. If there is such a condition, the Insurance company may still take on the risk albeit at a relatively higher rate than a client without such medical conditions.

 

An Insurance Company may breach this covenant if they delay or refuse to reasonable settle claims due to the Insured. It may also arise if the Insurance company by some technical manipulation intentionally under settles an Insurance claim.

If for instance, a Comprehensive Insurance Policy files a valid claim, the Insurer may be liable for negligence and or intentional wrongdoing.

Cheers!

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Kamiar owed Rubio $5,000, which was due in one year. There was no dispute that a debt existed and no dispute over the amount. Ho
aleksley [76]

Yes, Rubio will be able to successfully sue and collect the $1,000 later because their agreement was not fulfilled.

<h3>What is an agreement in contract?</h3>

In contract, an agreement is an element of what makes a contract valid. When an agreement is breached, then, the aggrieved party have a right to void the contract.

In conclusion, the answer is yes because Rubio will be able to successfully sue and collect the $1,000 later because their agreement was not fulfilled.

Read more about agreement

<em>brainly.com/question/997952</em>

7 0
2 years ago
CONSIDER a JOB THAT PAYS 100,000 PER YEAR. FEDERAL INCOME TAX IS 19% AND STATE INCOME TAX IS 7% WHAT IS THE ANNUAL TOTAL OF THE
FrozenT [24]

100000 X 19% = 19000  

100000 X 7% = 7000

<em>Total deduction: $26,000</em>

$74,000 per year he will get after deduction

6 0
3 years ago
In response to an upturn in the economy, entrepreneurs seek to expand their businesses. a. What will happen to nominal interest
kicyunya [14]

a. Nominal interest rates Increase and Aggregate demand Decrease

b. New Fed policy Buy bonds

Explanation:

When contemplating unemployment, the nominal interest rate applies to the rate of interest. Net may, without taking into consideration any commissions or compounded interest, be related to the advertised or reported interest rate of a loan.

The aggregate demand (AD) for finished commodities and facilities in the market at a certain time is aggregated. Strong demand is often named, but this term is often used in many ways. This is the market for a country's gross national product.

When the Fed sells debt in the international market, the world economy money supply is expanded by exchanging debt for cash from the general public. Instead, when the Fed sell bonds, the supply of money is reduced by cash being pulled out of the market in return for bonds. The Fed also sells bonds.

7 0
3 years ago
Question 2 of 8
sveta [45]

Answer:

This type of income is known as non-operating income in the financial statements

Explanation:

Non-operating income, as the world implies, is the income that a firm earns from activities that are not related to its main economic activity. An example would be a mall, whose main activity is the rental and management of commercial real estate, earning some income from short-term investments in the secondary market. This interest would be reported as non-operating income, and would be treated as such for financial, accounting, and tax purposes.

6 0
2 years ago
Forlornistan is a country in the midst of a serious economic downturn. Forlornistan's GDP has declined steadily for over three y
goblinko [34]

Answer:

The correct answer is option c.

Explanation:

Forlornistan is experiencing an economic downturn, the GDP has steadily declined, the employment rate is very low and the CPI is falling.

All these characteristics show that the economy is going through economic depression.

Depression refers to the situation in which an economy suffers a downturn in economic activities. It involves decrease in output level, price and employment rate.

6 0
3 years ago
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