For Property Insurance, an Insurable Interest Must Exist: _____

question 49

Multiple Choice

For property insurance, an insurable interest must exist: _____.

• A) at the time the policy is purchased.
• B) at the time of the loss.
• C) both at the time the policy is purchased and at the time the loss is sustained.
• D) for at least thirty (30) days before the loss is sustained.

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Definitions:

Activity-based Costing

This costing method assigns overhead and indirect costs to specific activities, providing more accurate insights into the actual costs of production or service delivery.

Resource Consumption

The amount of resources used by an activity, process, or production.

Activity-based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the activities that drive those costs.

First-stage Allocation

The initial process of assigning indirect costs to various cost pools in activity-based costing, before applying these costs to products or services.