Exclusions Are Used in Insurance Policies for All of the Following

question 43

Multiple Choice

Exclusions are used in insurance policies for all of the following reasons EXCEPT

• A)to reduce moral hazard.
• B)to waive policy conditions.
• C)to eliminate coverage for uninsurable perils.
• D)to eliminate coverage not needed by typical insureds.

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Definitions:

Capital Equipment

Assets used by businesses to produce goods and services, such as machinery, tools, and buildings.

Depreciation

A reduction in the value of an asset over time, often due to wear and tear or obsolescence.

Capital Equipment

Long-lasting tools, machinery, and infrastructure utilized in the production of goods and services.

Inventory Changes

Adjustments in the quantity or value of goods that a company has in stock, which can affect financial and operational performance.