Brokers Generally Stand in the Same Position as Life Insurance

question 14

True/False

Brokers generally stand in the same position as life insurance agents with respect to the legal power to bind the insurer to a life insurance contract.

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Definitions:

Prepaid Insurance

An asset account that represents insurance payments made in advance of the coverage period, to be expensed as the insurance coverage is used up.

Accounts Payable

Money owed by a business to its suppliers shown as a liability on a company's balance sheet.

Equipment

Durable physical assets used in operations, such as machinery and tools, which have a useful life longer than one accounting period.

Office Supplies

Consumable items used in offices for daily operations, such as paper, pens, and staplers, distinct from longer-term assets.