Which of the following statements is the correct order in which the loss
limitation rules apply?
Basic rules first, risk rules second, passive loss rules
third.
Passive loss rules first, risk rules second, basic rules
third.
Basic rules first, passive loss rules second, risk rules
third.
Passive loss rules first, basic rules second, risk rules
third.
Basic rules first, risk rules second, passive loss rules
third.
Passive loss rules first, risk rules second, basic rules
third.
Basic rules first, passive loss rules second, risk rules
third.
Passive loss rules first, basic rules second, risk rules
third.
Answer 1
Solution: Basic Rules First, Risk Rules Second, Passive Loss
third rules.
Explanation: Loss limitation rules are applied in
order given:
1) Section 704(d) Basic limitation rule
2) Article 465 Risk limitation rule
3) Section 469 Passive Loss Limitation Rule