Which of the Following Is Not a Characteristic of an Umbrella

question 98

Multiple Choice

Which of the following is not a characteristic of an umbrella policy?

• A) It provides additional liability insurance.
• B) It replaces other policies.
• C) It protects wealth.
• D) It is optional coverage.

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Definitions:

Prepaying Bonds

The action of repaying the principal of a bond before its maturity date, often as a way to manage debt or save on interest costs.

Outstanding Bonds

Bonds issued by an entity that are currently not redeemed and are in the hands of investors.

Semiannual Interest

Interest that is calculated and paid twice a year on investments or loans.

Par Value

The nominal or face value of a stock or bond, which is the amount stated on the certificate or instrument.