A True Statement About D&O Insurance Is That

question 19

Multiple Choice

A true statement about D&O insurance is that:

• A)it usually insures a business for losses caused by competitors.
• B)it is extremely cost prohibitive and should be avoided unless required by contractual needs.
• C)it is business liability insurance for professionals.
• D)it is usually paid by the board members.
• E)it protects board members of corporations from liability arising from their actions.

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Definitions:

Abrasion

The wearing away of rock or other material surfaces through contact with particles such as sand or pebbles being moved by wind, water, or ice.

Turbulence

A state of fluid flow characterized by chaotic, irregular motion, often encountered in the atmosphere or in flowing water.

Discharge Pattern

The variation in the volume of water that flows in a stream or river over time.

Hydrograph

A chart that illustrates the change in discharge rate over time at a particular location in a river, or any other flow-carrying channel or conduit.