Identify the Correct Statement About Payroll Endorsements in a Business

question 55

Multiple Choice

Identify the correct statement about payroll endorsements in a business income coverage policy.

• A)This option negates the coinsurance provision of business income coverage.
• B)An organization with stable earnings and expectations of a short period of restoration would find this option worthwhile.
• C)This option limits the duration of coverage to 120 days or until the limit is reached, whichever comes first.
• D)This option allows the insured to deduct some or all payroll expenses from the value of operating expenses before calculating the coinsurance requirement.
• E)This option includes payroll from covered expenses.

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Definitions:

Equilibrium Price

The market price at which the quantity of a good supplied is equal to the quantity demanded.

Equilibrium Quantity

The measure of goods or services being supplied and demanded at a price point where equilibrium occurs.

Price Of Steel

The cost or market rate at which steel is bought or sold, influenced by demand, supply, production costs, and global market trends.

Price Of Gasoline

The cost per unit volume of gasoline, which can vary depending on factors such as oil prices, taxes, and demand.