All the Following Features Are Unique to Insurance Contracts (Versus

question 82

Multiple Choice

All the following features are unique to insurance contracts (versus other business contracts) except:

• A) insurable interest
• B) subrogation
• C) utmost good faith
• D) consideration

---

Definitions:

Trade Credit

A financial agreement in which a customer is allowed to purchase goods or services and pay the supplier at a later scheduled date, effectively extending interest-free credit.

Current Liabilities

Short-term financial obligations a company is required to pay within one year or within the normal operating cycle.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year.

Return On Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how effectively a company uses invested funds to generate profit.