Section 985B of the Corporations Act 2001 Provides That If

question 27

Multiple Choice

Section 985B of the Corporations Act 2001 provides that if an insured pays the correct premium to an intermediary (such as a broker) :

• A)the payment is not regarded as having been received by the insurer.
• B)the insured must recover any losses from the intermediary.
• C)the payment is regarded as having been received by the insurer.
• D)the insurer is only obliged to refund the premium to the insured.

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Definitions:

Raw Materials

The basic substances used in the production of goods, often processed in several steps before becoming part of the final product.

Advertising Costs

The expenses incurred in promoting a product, service, or business, typically through various media channels.

Overapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead costs are more than the actual overhead costs incurred.

T-account

A visual representation of a ledger account that displays its debit and credit sides to explain transactions.