The Right to the Proceeds of an Insurance Policy

question 2

Multiple Choice

The right to the proceeds of an insurance policy

• A) cannot be assigned.
• B) can be assigned only by the insured.
• C) can be assigned by the insured and the beneficiary.
• D) can be assigned only to a family member.

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Definitions:

Ordinary Repairs

Expenditures for routine maintenance and upkeep of assets, charged as expenses to ensure the operational efficiency of an asset.

Plant Asset

Plant asset refers to long-term tangible property, plant, and equipment that a company uses in the production of its goods and services.

Operating Efficiency

A measure of how well a company uses its assets and liabilities internally to generate revenue.

Exchange Of Plant Assets

Transactions involving the swap of fixed assets, such as machinery or buildings, between entities, often due to operational needs or upgrades.