What Is a Correct Statement Concerning Burden of Proof

question 8

Multiple Choice

What is a correct statement concerning burden of proof?

• A) The insured has the burden of proving that the loss was a covered loss.
• B) The insurer has the burden of proving that the loss was not covered.
• C) Exceptions to coverage are liberally interpreted in favor of the insurer.
• D) Exceptions to coverage are disregarded in life insurance matters.

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Definitions:

Gains

Increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases in liabilities.

GAAP

GAAP, which stands for Generally Accepted Accounting Principles, is a set of accounting standards and conventions that guide how financial statements are prepared and reported.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that aims to ensure transparency and comparability of financial statements globally.

Expenses

Outflows of resources or incurring of liabilities from a company's operations, including costs for materials, labor, and overhead required to generate revenue.