If a Payment Problem Develops with an Insurance Company and the Company

question 49

Multiple Choice

If a payment problem develops with an insurance company and the company ignores claims and exceeds time limits to pay a claim, it is prudent to contact the

• A) federal insurance commissioner.
• B) state insurance commissioner.
• C) state insurance federation.
• D) department of public service.

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Definitions:

Vacation Pay Payable

A liability account that records the amount of vacation pay owed to employees but not yet paid.

Current Liability

Financial obligations a company is required to pay within a year.

Product Warranty Expense

Costs associated with repairing or replacing defective products under warranty.

Replacement Warranty

A guarantee provided to a purchaser of a product that a defective item will be replaced within a specified period of time.