An Insurance Contract Made with a Business Entity That Covers

question 42

Multiple Choice

An insurance contract made with a business entity that covers its employees under a single policy is called a/an:

• A) group contract.
• B) business contract.
• C) equilateral contract.
• D) managed care contract.

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Definitions:

Mandatorily Redeemable

Financial instruments or securities that the issuer is obligated to buy back or redeem at a predetermined price and date.

Equity

Equity refers to the ownership interest held by shareholders in a corporation, represented by their shares of the company's stock.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends.

Financially Weak

Refers to a state where a company or an individual has poor financial health, often indicated by low liquidity, high debt, or difficulty in generating income.