Additional Personal Liability Insurance Beyond the Basic Coverage in a Homeowner's

question 95

Multiple Choice

Additional personal liability insurance beyond the basic coverage in a homeowner's policy is available with:

• A)an umbrella policy.
• B)a personal property floater.
• C)an endorsement.
• D)a coinsurance clause.
• E)medical payments coverage.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, entitling holders to vote on corporate matters and receive dividends.

Initial Value Method

An accounting approach where investments are reported at their acquisition cost without subsequent adjustment for changes in market value.

Goodwill

An intangible asset on a company's balance sheet that arises when a company acquires another for a price higher than the fair value of its net tangible assets.

Retained Earnings

The portion of net income that is not distributed as dividends to shareholders, but rather reinvested in the business or kept as reserve.