An Agreement by the Insurer to Modify a Basic Policy

question 73

Short Answer

An agreement by the insurer to modify a basic policy, also called a rider or attachment, is known as a(n)____________________.

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Definitions:

Adjusting Entry

An adjusting entry is a journal entry made in accounting records to adjust income and expense accounts so they comply with the accrual concept.

Interest-Bearing Note

A debt instrument in which the issuer pays the holder interest at a specified rate over the term of the note.

Accrued Interest

Interest that has been incurred but not yet paid or received in cash.