If There Is a Conflict Between State Law and a Provision

question 23

Multiple Choice

If there is a conflict between state law and a provision in a homeowners policy

• A)the policy wording takes precedence.
• B)the state law takes precedence.
• C)the policyowner is entitled to whichever provides broader coverage.
• D)the policy is null and void.

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Definitions:

Consolidated Financial Statements

Combined financial reports of a parent company and its subsidiaries, showing the financial results as if they were a single entity.

Common Stock

A form of investment that signifies part ownership in a corporation, granting the investor voting privileges and a portion of the company's earnings through dividends.

Equity Method

An accounting technique used for recording investments in associated companies where the investor has significant influence but does not control the company outright.

Voting Stock

Shares that give the shareholder the right to vote on matters of corporate policy and the election of the board of directors.