Write TRUE or FALSE after each of the following statements:
(i) Utmost Good Faith means that the insured must tell the truth and disclose all material facts - Leaving Cert Business - Question 7 - 2011
Question 7
Write TRUE or FALSE after each of the following statements:
(i) Utmost Good Faith means that the insured must tell the truth and disclose all material facts.
(ii) ... show full transcript
Worked Solution & Example Answer:Write TRUE or FALSE after each of the following statements:
(i) Utmost Good Faith means that the insured must tell the truth and disclose all material facts - Leaving Cert Business - Question 7 - 2011
Step 1
(i) Utmost Good Faith means that the insured must tell the truth and disclose all material facts.
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Answer
True. In insurance, the principle of Utmost Good Faith (uberrima fides) requires that both parties (the insurer and the insured) must deal honestly and disclose all material facts.
Step 2
(ii) Batch Production involves producing identical products continuously.
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Answer
False. Batch production refers to the manufacturing of products in groups or batches, where different batches can produce different products, rather than producing identical products continuously.
Step 3
(iii) The Average Clause rule applies in insurance when an item is underinsured.
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Answer
True. The Average Clause is used in insurance to penalize the insured for underinsurance, as it adjusts the claim amount proportionally to the level of coverage taken.
Step 4
(iv) An Autocratic leader likes to involve employees in decision-making.
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Answer
False. An Autocratic leader typically makes decisions independently and does not seek input from employees, contrasting with participative leadership styles.
Step 5
(v) Job Production involves producing a one-off single product to a customer’s specification.
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Answer
True. Job production refers to a production method where products are made individually based on specific customer requirements.
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