This Type of Binder Implies That Coverage Exists Only If

question 59

Multiple Choice

This type of binder implies that coverage exists only if the underwriter ultimately accepts the application for insurance.Thus, if the applicant dies prior to the final policy issuance, payment is made if the applicant would have been acceptable to the insurer as an insured.Identify this type of binder.

• A)Facultative binder
• B)Conditional binder
• C)General binder
• D)Estoppel
• E)Waiver

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Definitions:

Critical Event Criteria

Specifications or guidelines used to identify significant events that could impact an organization's operations or processes.

Revenue Recognition

An accounting principle that outlines the specific conditions under which revenue is recognized and determines how to account for it.

Capital Leases

Long-term lease agreements that transfer substantially all rights and risks of ownership from the lessor to the lessee.

FASB

The Financial Accounting Standards Board, an independent organization responsible for establishing accounting and financial reporting standards for companies and non-profit organizations in the United States.