Which of the Following Terms Are Not Always Included in an Insurance

question 36

Multiple Choice

Which of the following terms are not always included in an insurance contract?

• A)Terms regarding payment of the premium.
• B)Terms obliging the insurer to indemnify the insured based on the loss actually suffered.
• C)Terms identifying the particular risk or happening to which the policy will respond.
• D)Terms creating an obligation to indemnify or pay money on the happening of a particular event.

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Definitions:

Stock Dividend

It's a dividend payment made in the form of additional shares rather than a cash payout, representing a reinvestment of company earnings.

Stock Split

An action by a company to divide its existing stock into multiple shares to boost liquidity without changing shareholders' equity.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders.

Permanent Capital

The portion of a company's capital that is not expected to be paid back or withdrawn within a year, including equity and long-term debt.