Which of the Following Relationships Will Ordinarily Not Create an Insurable

question 14

Multiple Choice

Which of the following relationships will ordinarily not create an insurable interest?

• A) Husband and wife.
• B) Doctor and patient.
• C) Debtor and creditor.
• D) Chief executive officer and corporation.

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Definitions:

Stated Value

A value assigned to no-par value stock by the company's board of directors to define a minimum legal capital.

Common Stock

A type of equity security that represents ownership in a corporation, with rights to vote on corporate policy and receive dividends.

Cash

Liquid currency held by a business for transactions, operational expenses, and other immediate needs.

Journal Entries

The recording of financial transactions in a company's ledger, detailing the accounts affected and the amounts debited or credited.