An Incontestability Clause Prohibits an Insurer from Contesting Statements Made

question 8

True/False

An incontestability clause prohibits an insurer from contesting statements made in an insurance application until a specified time has elapsed.

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Definitions:

Control Account

A summary account in the general ledger that aggregates the details held in a subsidiary ledger for easier oversight and reconciliation.

Factory Labor

The workforce involved in the production process within a manufacturing facility, including direct and indirect labor.

Employer Payroll Taxes Payable

Liabilities owed by employers for various payroll taxes, including social security and Medicare, based on employee wages.

Flow Of Costs

Flow of Costs refers to the manner in which costs move through a company's accounts, typically beginning as inventory and transitioning through to the cost of goods sold.