Where an Insured Places Coverage with Three Different Brokers, Each

question 41

True/False

Where an insured places coverage with three different brokers, each broker will have to contribute to a loss, but the total paid to the insured may not exceed the loss itself.

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Definitions:

One-Column Purchases Journal

A simplified accounting ledger that records only the purchases of goods and services in a single column, typically for small businesses or specific types of transactions.

General Ledger

The primary accounting record of a company that contains all the account balances needed to prepare financial statements.

Accounts Payable

Liabilities owed by a business to its suppliers or vendors for goods and services received but not yet paid for.

General Ledger

A comprehensive set of accounts that records all financial transactions of a business, organized by account.