A Contract That Pays the Insured a Specific Daily Amount

question 4

Multiple Choice

A contract that pays the insured a specific daily amount (based on scheduled limits) for services to assist with the activities of daily living is:

• A)Annuity insurance.
• B)Disability insurance.
• C)Long-term care insurance.
• D)Medical insurance.

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Definitions:

Expenses

Monetary costs incurred in the operation of a business, leading to the creation of liabilities or decrease in assets.

Basic Accounting Equation

The fundamental equation of double-entry bookkeeping, stating that assets equal liabilities plus owner's equity.

Transaction

An agreement or exchange between two parties that has a measurable financial effect on the accounts of a business.

Accounts

Financial records of transactions that track the income, expenses, assets, liabilities, and equity of an entity.