Under an Open Perils Insurance Policy

question 57

Multiple Choice

Under an open perils insurance policy:

• A) covered perils are spelled out, usually using a numbered list
• B) any piece of property not excluded is covered
• C) absolutely all risks of losses are covered, those having an illegal purpose
• D) all perils not excluded are covered

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Definitions:

Variance Reports

Documents that show the difference between planned and actual financial performance.

Internal Reports

Reports generated within an organization, intended for internal strategic decision-making and performance evaluation.

Labor Price Variance

The difference between the actual cost of labor and the standard or budgeted cost of labor over a period.

Direct Labor Cost

The total cost of work done by employees who are directly involved in the manufacture of a product or in performing a service.