In Order for a Potential Loss to Be Insurable It

question 195

Multiple Choice

In order for a potential loss to be insurable it must be

• A)fortuitous and financial.
• B)indemnifiable.
• C)catastrophic.
• D)expected.

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Definitions:

Accumulated Depreciation

The total amount of an asset's cost that has been allocated as depreciation expense since the asset was put into use, representing how much of the asset's value has been used up.

Item's Cost

The purchase price or production cost of an item, including expenses directly attributable to its acquisition or manufacture.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for a fixed asset over its useful life.

Disposal

The act of selling or getting rid of an asset or a portion of a business.