Which of the Following Statements Is True About Periods of Coverage

question 15

Multiple Choice

Which of the following statements is true about periods of coverage and limitations of liability?

• A)Life insurance policies promise to pay a specified amount for total expenses during one's lifetime.
• B)Health policies typically limit payment to the face amount of the policy.
• C)Term life policies often provide coverage for the entire life of the insured.
• D)Perpetual policies remain in force until canceled by the insured or the insurer.
• E)Liability policies provide coverage up until a specified age.

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Definitions:

General Journal Entries

The records of financial transactions in the general journal, noting debits and credits along with a description of each transaction.

Terms of Sale

The conditions under which a seller will complete a sale, typically detailing payment terms, delivery times, and warranties.

Sales Tax

Sales tax is a tax levied by governments on the sale of goods and services, typically calculated as a percentage of the sales price.

General Journal Entry

A record of financial transactions in the order in which they occur, used as the basis for all other financial reports.