Which of the Following Statements Is False

question 55

Multiple Choice

Which of the following statements is false?

• A) Assessment mutuals provide primarily fire and windstorm insurance.
• B) A stock insurance company is a profit-making venture in both life and property insurance.
• C) Dividends are paid to stockholders of stock companies.
• D) In stock companies, non-insured stockholders bear none of the risk of loss.

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Definitions:

Conforming Goods

Goods that are in accordance with the obligations under the contract.

Cure

The correction of a defect in goods that caused the goods to be rejected by a buyer.

Delivery

The act of transporting goods or services from a seller or provider to the recipient's location, completing a sales transaction.

Implied Warranty

A legal assumption that a product or service sold will meet basic quality and functionality standards.