Which of the Following Statements About State Insurance Guaranty Funds

question 27

Multiple Choice

Which of the following statements about state insurance guaranty funds is (are) true?
I.They limit the amount that policyowners can collect if an insurer becomes insolvent.
II.They are usually funded by general revenues of the states.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Period Cost

Costs that are expensed in the period in which they are incurred, not directly tied to the production process.

Indirect Labor

Refers to the labor costs of employees who do not directly work on the production of products, but support the production process.

Direct Labor

The wages or salaries paid to employees who are directly involved in the production of goods or services.

Factory Employees

Workers employed in industrial production, typically involving manual labor or operation of machinery in a factory setting.