Indemnity Insurance

question 13

Multiple Choice

Indemnity insurance

• A) reimburses for certain types of losses including fire and theft.
• B) in the basis for most of the health insurance coverage in the U.S.
• C) is often experience-rated with premiums based on expected losses.
• D) is sometimes called "casualty insurance."
• E) all of the above.

---

Definitions:

Performance Reports

Documents that compare actual work performance against planned or expected outcomes.

Variable Cost

A cost that varies, in total, in direct proportion to changes in the level of activity. A variable cost is constant per unit.

Fixed Cost

A cost that remains constant, in total, regardless of changes in the level of activity within the relevant range. If a fixed cost is expressed on a per unit basis, it varies inversely with the level of activity.

Planning Budget

A financial plan for a future period, outlining an organization's revenue and expenditures.