Question

Which of the following is TRUE of Common Condition?

a. Insurer has the right to inspect the property.
b. Insurer inspection constitutes a warranty.
c. Insurer has duty to inspect insured's property.
d. Insurer will assess insured for inspection cost.

Answer 1

The true statement about Common Condition in an insurance policy is that the insurer has the right to inspect the property.

Step-by-step explanation:

The question refers to a Common Condition in an insurance policy. The correct answer is: a. Insurer has the right to inspect the property. This condition gives the insurer the right to inspect the insured property, but it does not obligate them to do so. Nor does the inspection constitute a warranty of the property's condition, nor it implies that the insurer has a duty to perform regular inspections. Typically, the costs for such inspections are not directly assessed to the insured unless specified otherwise in the policy.