Huge Insurance Company Is a Property Insurer That Is Interested

question 35

Multiple Choice

Huge Insurance Company is a property insurer that is interested in protecting itself against cumulative losses that exceed $200 million during the year.This protection can best be obtained using

• A)a quota-share reinsurance treaty.
• B)a surplus-share reinsurance treaty.
• C)an excess-of-loss reinsurance treaty.
• D)a reinsuance pool.

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Definitions:

Petty Cash

A small amount of cash on hand used for minor, incidental expenses of a business.

Petty Cash Fund

A small amount of cash kept on hand for making minor payments.

Valid Receipts

Documents that serve as proof of a transaction, showing essentials like the date, items purchased or services rendered, and the amount paid.

Debit Memo

A document issued to adjust downwards the amount of money owed to a business by a customer or another business.