help A client calls their Broker to follow up on a renewal for their personal home insurance policy. During thisconversation the client mentions that their home is heated by a wood stove, however the information on the policymentions the home is heated by an electrical furnace. Updating this information with the insurance company canlead to a large increase in premium for the client. What should the Broker advise the client?OA) The renewal needs to be cancelled as this is a material change in risk.OB) The information on the file is incorrect and updating the information will increase their premium, andrecommend to keep this information hidden from the insurance company.OC) The information on file is incorrect and as this is a material change in risk it must be communicated with theinsurance company as soon as possible.OD) Wood stoves increase the risk of fire hazard. Suggest that they have it replaced with a central heatingsystem before the policy can be renewed. Your insured has Comprehensive coverage on O.A.P. 1 Owner's Policy and informs you that he/she will be taking thecar by ferry from Yarmouth, Nova Scotia to Bar Harbour, Maine. The insured asks if the policy would cover the lossof the automobile if the ferry sank in a storm. What do you tell him/her?OA) The Comprehensive coverage would pay.OB) That there would be no coverage as the ferry was not operating solely between Canadian ports.OC) Stranding or sinking while the automobile is being transported on water is only covered for Specified Perils,not Comprehensive.OD) There would be no coverage unless a special Ferry Rider was added.

Risk management is a strategic and systematic process aimed at identifying, analyzing, and…

Answered: our insured has Comprehensive coverage…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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If an insurer wishes to cancel a health insurance policy, it can do so: OA B. O C O D. in Florida as long as premiums are returned on a short-rate basis with a 45-day notice to the policyholder with notice to the Department of Financial Services as long as no daim is pending
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