A client who is a new driver has asked for the cheapest vehicle insurance policy available, and expressly requests a policy with no extra endorsements and with the lowest possible limits. Can a Broker sell such a policy to the new driver? OA) Yes, but document where you have informed the client of the risks of potentially being underinsured. OB) Yes, the client has the right to choose their policy as long as it meets the statutory requirements. OC) No, the Broker has a moral duty not to allow a client to be exposed to such liability. OD) No, as it will expose the broker to vicarious liability of an under-insured client.
A client who is a new driver has asked for the cheapest vehicle insurance policy available, and expressly requests a policy with no extra endorsements and with the lowest possible limits. Can a Broker sell such a policy to the new driver? OA) Yes, but document where you have informed the client of the risks of potentially being underinsured. OB) Yes, the client has the right to choose their policy as long as it meets the statutory requirements. OC) No, the Broker has a moral duty not to allow a client to be exposed to such liability. OD) No, as it will expose the broker to vicarious liability of an under-insured client.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Milan has an Automobile Policy (OAP 1) in his name. In which scenario could he add a second vehicle to his policy
registered under a different name?
OA) The vehicle is registered in his child's name.
OB) The vehicle is registered in his garage company's name.
OC) The vehicle is registered in his cousin's name living at the same address.
OD) The vehicle iş registered in his spouse's name.
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Transcribed Image Text:A client who is a new driver has asked for the cheapest vehicle insurance policy available, and expressly requests a policy
with no extra endorsements and with the lowest possible limits. Can a Broker sell such a policy to the new driver?
OA) Yes, but document where you have informed the client of the risks of potentially being underinsured.
OB) Yes, the client has the right to choose their policy as long as it meets the statutory requirements.
OC) No, the Broker has a moral duty not to allow a client to be exposed to such liability
OD) No, as it will expose the broker to vicarious liability of an under insured client.
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