What Type of Clause in an Insurance Policy States That

question 92

Multiple Choice

What type of clause in an insurance policy states that the insurer will pay for a covered loss only to the extent that it exceeds a certain stated amount that the insured pays toward that loss?

• A) indemnity clause
• B) coinsurance clause
• C) endorsement clause
• D) deductible clause
• E) subrogation clause

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Definitions:

Shareholder's Basis

The amount of a shareholder's investment in stock of a corporation, adjusted for various tax-related items.

Corporate Debt

Financial obligations owed by a corporation, typically in the form of bonds, loans, or other types of securities.

Charitable Contributions

Donations made to qualifying organizations which may be deductible from the donor's taxable income, subject to IRS rules and limitations.

Tax Liability

The total amount of taxes owed to federal, state, or local tax authorities for a given period, before any payments or credits are applied.