Question

Which of the following are defined as a part of the policy and can void the policy if they are breached, whether the breach was intentional or unintentional?

1) Terms and conditions
2) Exclusions
3) Insurance coverage
4) D. Premium payment

Answer 1

The parts of the policy that can void the policy if breached are the terms and conditions. They specify the obligations of the policyholder and the insurer, and disregarding them can invalidate the policy. Deductibles, copayments, and coinsurance are financial elements within the policy that reduce moral hazard.

Step-by-step explanation:

The part of the policy that can void the policy if breached, whether the breach was intentional or unintentional, is the terms and conditions. The terms and conditions of an insurance policy establish the rights and obligations of both the insurer and the insured. Breaching these terms, such as not paying premium payments or engaging in activities listed as exclusions, can lead to the nullification of the policy.

A deductible is an amount that policyholders must pay out-of-pocket before the insurance coverage kicks in. This, along with copayments and coinsurance, are measures to reduce moral hazard, which occurs when people take greater risks because they are insured.