Questions (49) and (50) go together: Robb Pham is the Chairp…
Questions (49) and (50) go together: Robb Pham is the Chairperson and Chief Executive Officer of Rooney Partners, Inc. Rooney Partners owns a multi-state portfolio of shopping centers and office parks. Rooney Partners has used the same insurance company, October Insurance, during the past seven years for the full range of its property and casualty policies. Rooney Partners’ premiums with October Insurance have drastically risen over the past three years, and Pham is exploring other options. During the prior year Rooney Partners has experienced five major fires at its shopping centers. Rooney Partners made claims related to each of those fires, and was paid-in-full every time (after the application of the applicable deductibles). In its application to replace all its policies with Murray Insurance, Pham decided not to report the fires as a response to the question “Have you made any coverage claims during the past three years?” Rooney Partners’ board of directors has a material reason to be concerned about negative effects as a result of that report because insurance _____________________ are incorporated into an issued policy. (Select one answer only.)