A(n) ________ Is a Clause in an Insurance Policy That

question 19

Multiple Choice

A(n) ________ is a clause in an insurance policy that provides that insurance proceeds are payable only after the insured has paid a specified amount toward the damage or loss.

• A) incontestability clause
• B) coinsurance clause
• C) exclusions from coverage clause
• D) deductible clause

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Definitions:

Premium Amortization

The process of gradually expensing the premium paid above a bond's face value over the remaining life of the bond.

Effective-interest Method

The effective-interest method is a technique used in amortizing the discount or premium on bonds payable, where the interest expense recorded over time corresponds to the bond's carrying value.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds, recognized on the income statement.

Anthropocentric

Pertaining to the belief that human beings are the central or most significant species on the planet, often regarding nature and environment from a human-centered perspective.