Each of the following is a characteristic of a risk retention group EXCEPT:

A) the group must be licensed by at least 1 state.

B) the policyholders must be involved in diverse businesses or activities.

C) it is owned by its policyholders.

D) the group provides only liability insurance.

Answer: B

Insurance Company Organization

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay? a) $0 b) $30,000 c) $32,000 d) $40,000 Answer: B

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The voluntary relinquishment of a legal right is called
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