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The test to be used in measuring the insurer's action in first-party bad-faith claims is the standard.
Cost of Sales
The direct costs attributable to the production of the goods sold by a company, including materials, labor, and manufacturing overhead.
Contractual Agreement
A legally binding agreement between two or more parties, outlining their responsibilities and obligations.
Equity Method
An accounting technique used to record investments in associated companies, where the investment is initially recorded at cost and subsequently adjusted for the investor's share of the investee's net profit or loss.
Proportionately Adjusted Retained Earnings
Retained earnings adjusted in proportion to ownership interest in a company or investment.
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