Which of the Following Statements Is Not True of Insurance

question 75

Multiple Choice

Which of the following statements is not true of insurance policies?

• A) The basic principles of contract law apply to insurance policies.
• B) Insurance companies tend to standardize their policies.
• C) Some states forbid standardization of insurance policies.
• D) All of these statements are untrue of insurance policies.

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Definitions:

VP of Sales

A top executive responsible for leading the sales department, developing sales strategies, and driving revenue growth for an organization.

Overhead Allocated

The portion of indirect costs assigned to a specific project or production process, often based on predetermined rates or actual expenses.

Period Costs

Expenses that are not directly tied to the production of goods and are expensed in the period they are incurred.

Sales Commissions

Payments made to salespeople, typically calculated as a percentage of the sales they generate.