Which of the Following Is a State Mandated Clause That

question 17

Multiple Choice

Which of the following is a state mandated clause that ensures that after an insurance policy has existed for a period of time, the company cannot contest any statements in the application?

• A) Antilapse clause
• B) Incontestability clause
• C) Periodic clause
• D) Exception clause
• E) No contest clause

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Definitions:

Direct Labor

Direct labor involves the work of employees that is directly attributable to the production of goods or services, such as the labor of a factory worker assembling a product.

Factory Overhead Cost

All indirect costs related to manufacturing, excluding direct materials and direct labor expenses.

Depreciation

The structured apportioning of the price of a tangible asset across its operational life.

Sales Commissions

Payments made to salespersons or agents based on the sales they generate.