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:

Balance Sheet

A document outlining a corporation's financial standing, detailing assets, liabilities, and equity of shareholders on a given date.

Market Value

The current price at which an asset or a company can be bought or sold in a public market.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business' operating cycle, whichever is longer.

Accounts Receivable

Money owed to a company by its debtors for goods or services that have been delivered or used but not yet paid for.