Which of the Following Statements About a Calendar-Year Deductible Is

question 40

Multiple Choice

Which of the following statements about a calendar-year deductible is (are) true?
I.It requires the insured to pay a specified amount of each claim regardless of when the claim occurs during the year and regardless of any previous claims during the year.
II.It is used only in policies which cover direct property losses.

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

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Definitions:

Operating Departments

Units or divisions within an organization that are directly involved in its primary revenue-generating activities.

Transfer Price

The price charged for goods or services transferred among divisions or subsidiaries within the same company.

Valve Division

A business segment or department within a larger company that specializes in the production, distribution, and sale of valves.

Customer Service Department

A division within a company that handles customer inquiries, complaints, and provides support and assistance.