With cancelable policies, the insurer is responsible under a binder for losses that:
A)occur due to pure risk exposures.
B)the underwriter thinks are insurable.
C)occur due to idiosyncratic risk exposures.
D)occur throughout the term of the policy.
E)occur prior to cancellation.

Question

Quizplus · Accepted Answer

Cancelable policies cover losses that occur before the policy is canceled, meaning the insurer is responsible for any claims made prior to the cancellation date.

With Cancelable Policies, the Insurer Is Responsible Under a Binder