The Agents Submit to the Insurance Entity a Statement of All

question 154

Multiple Choice

The agents submit to the insurance entity a statement of all policies issued or due during the current month, and the net amount of the statement is subsequently to be paid in accordance with the agency agreement, is an account current of:

• A) Insurance billing
• B) Direct billing
• C) Rendering basis
• D) Billing basis

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Definitions:

Goodwill

Goodwill is an intangible asset that arises when a company acquires another company for a premium value, representing elements such as brand reputation, customer relations, and intellectual property.

Acquisition

Gaining control over a different corporation through the acquisition or trade of shares.

Bargain Purchase

Occurs when a company acquires an asset at a price significantly below its fair market value.

Subsidiary

A company that is completely or partly owned and partly or entirely controlled by another company, known as the parent company.