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IIA-CFSA · Question #206

Insurance is a method of transferring, for a fee, the financing responsibility for the risk to another party. Insurance polices are legal contracts. There are four elements that constitute a legal…

The correct answer is B. Periodic review. See the full explanation below for the reasoning.

Question

Insurance is a method of transferring, for a fee, the financing responsibility for the risk to another party. Insurance polices are legal contracts. There are four elements that constitute a legal, binding contract. Which of the following is NOT out of those elements?

Options

  • AAgreement
  • BPeriodic review
  • CCompetent parties
  • DLegal purpose

How the community answered

(42 responses)
  • A
    2% (1)
  • B
    81% (34)
  • C
    5% (2)
  • D
    12% (5)

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