Which of the Following Provisions Helps the Insurer Avoid Litigation

question 20

Multiple Choice

Which of the following provisions helps the insurer avoid litigation about who is entitled to policy benefits, and protects the insurer from paying twice?

• A)Survivorship
• B)Reinstatement
• C)Assignment
• D)Incontestable
• E)Double indemnity

Prepare adjusting entries for accrued interest on notes receivable and payable.

Recognize the impact of accrued interest on financial statements.

Distinguish between the nominal and effective interest rates.

Record the proceeds and discount transactions of notes receivable and payable.

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Definitions:

Monopolistic Competition

A market structure where many companies sell products that are similar but not identical, leading to competition based on factors other than price.

Over-Differentiation

refers to the creation of product variations that exceed customer needs or desires, potentially leading to confusion and reduced sales.

Monopolistically Competitive Industries

Industries in which many firms compete by selling products that are similar but not identical, allowing for product differentiation.

Lack of Variety

A situation in a market where there are few different options or types of products available to consumers, potentially leading to decreased consumer satisfaction.