Question

16 multiple choice 1 point a(n) ______ is a contract whereby the insurer agrees to assume certain risks of the insured for consideration. premium risk insurance policy policyholder 17 multiple choice 1 point a risk is the possibility that: the insurance carrier will provide security against any loss. a loss will occur. a loss will occur and the insurance carrier will compensate for the damages based on policy limits the insurer will prevent or hinder the occurrence of all losses. 18 multiple choice 1 point insurance coverage for officers and directors of a corporation should include indemnification, to the extent possible by law, for all liabilities and expenses, including: when it can be shown that the trustee failed to act in good faith. those that are not reasonably incurred as the result of any legal proceeding. when it can be shown that the trustee acted in good faith and within the scope of his or her responsibilities. those outside the scope of his or her responsibilities.

Explanation:

1. An insurance policy is a contract where the insurer assumes certain risks of the insured in return for a premium. A premium is the payment made by the insured, risk is the potential for loss, and a policyholder is the owner of the policy.
2. A risk is simply the possibility that a loss will occur. Insurance carriers may or may not provide security against loss or compensate for damages. Insurers cannot prevent all losses.
3. Insurance coverage for officers and directors should indemnify when they act in good - faith and within their scope of responsibilities to protect them from legal and financial risks.

Answer:

1. C. insurance policy
2. B. a loss will occur.
3. C. when it can be shown that the trustee acted in good faith and within the scope of his or her responsibilities.