If a person upon whom the assurance is demanded does not have a good reputation or economic position, a guarantee of performance or a pledge of security may be required. A. True
B. False

The correct answer is A. It is true that, if a person upon whom the assurance is demanded does not have a good reputation or economic position, a guarantee of performance or a pledge of security may be required.

Explanation:

Indeed, to access good insurance coverage, the insured person is required to have a certain financial solvency, which guarantees the insurance company that the person has no need to cause the evil for which he is insuring, since he has no financial need to obtain said benefit immediately.

Therefore, in case of not being completely solvent, the person must demonstrate certain requirements that fulfill the guarantee function for the company. Thus, many times these people are required to sign security guarantees, and are even forced to pay a higher fee for an amount that is worth less than the good they are insuring. In this way, insurance companies seek to reduce the risk of insurance fraud.

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