Which One of the Following Statements Best Describes the Insurance

question 23

Multiple Choice

Which one of the following statements best describes the insurance industry?

• A) major insurance company liabilities are called reserves.
• B) most life insurance companies are stock companies.
• C) mutual insurance accounts for about half of all the life insurance in force.
• D) all of the above are true.

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Definitions:

Compensatory Damages

Monetary awards given to a plaintiff to compensate for loss, damage, or injury suffered due to another's breach of duty or negligence.

Implied Warranty

A legal guarantee that a product will meet certain standards of quality and reliability even if not explicitly stated in a contract.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, designed to standardize and harmonize sales and commercial transactions across state lines.

Express Warranty

A written guarantee by the seller about the quality or performance of a product, provided at the time of sale.