Which of the Following Statements About an Earthquake Endorsement for a Homeowners

question 10

Multiple Choice

Which of the following statements about an earthquake endorsement for a homeowners policy is (are) true?
I.The endorsement also covers landslides and volcanic eruptions.
II.The coverage for earthquakes is written without a deductible.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Diluted Earnings

Earnings per share (EPS) calculated using the maximum potential number of shares that could be outstanding if all sources of conversion, such as convertible bonds or employee stock options, are exercised.

Marginal Income Tax Rate

The percentage of tax applied to your income for each tax bracket in which you qualify, essentially the rate at which the last dollar of your income is taxed.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, giving more weight to some numbers than others.

Basic Earnings

The net income earned by a company divided by the number of outstanding shares, providing a measure of the company’s profitability on a per-share basis.