One Inland Marine Coverage Form Is the Accounts Receivable Coverage

question 22

Multiple Choice

One inland marine coverage form is the accounts receivable coverage form.In which of the following cases would the purchaser of this form (the insured) be indemnified through the coverage?

• A)if the insured cannot pay amounts owed because the purchaser has become insolvent
• B)if the insured cannot pay amounts owed because the purchaser has suffered an insured physical damage loss
• C)if the insured cannot collect accounts receivable because of the destruction of records
• D)if the insured cannot collect accounts receivable because the purchaser extended credit to poor credit risks

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Definitions:

Expected Price Level

The anticipated average level of prices in the economy for goods and services over a specific period.

Economic Conditions

The current state of the economy in terms of production, employment, and price levels, influencing business decisions and government policy.

Expected Price Level

The future value that consumers and businesses anticipate for the average price of goods and services in the economy.

Actual Price Level

The current general price of goods and services in the economy, not adjusted for inflation.