Choose the True Statement

question 61

Multiple Choice

Choose the true statement.

• A) FAIR plans were developed to provide insurance to automobile drivers when coverage is otherwise unavailable.
• B) FAIR plans are now found in all states.
• C) FAIR plans require that each property owner that requests it, be given an inspection of his property and an offer of insurance at an appropriate rate or written notice of improvements needed before insurance can be offered.
• D) In general, FAIR plans have shown underwriting gains in most states in most years.

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Definitions:

Fixed Expenses

Costs that do not vary with the level of production or sales within a certain range.

Special Order

An order for goods or services that is outside the company's normal scope of work, which can often require a unique pricing strategy and cost analysis.

Variable Expenses

Costs that fluctuate with business activity levels, such as raw material costs or utilities following production volumes.

Net Income

The total profit of a company after all expenses, including taxes and operational costs, have been subtracted from total revenue.