Which of the Following Statements Is TRUE with Respect to Property

question 29

Multiple Choice

Which of the following statements is TRUE with respect to property insurance?

• A)A benefit paid by an insurer to an insured is called a premium.
• B)Property insurance is called third party coverage if one person buys insurance with respect to property that is owned by another person.
• C)Property insurance is called first party coverage only if the insurer sold the policy to a human being, rather than a corporation.
• D)A benefit may be paid under a property insurance policy even if the insured is entitled to sue a third party for causing the loss or damage in question.
• E)Property insurance is available for real property, but not personal property.

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Definitions:

Job-Order Costing

An accounting method used to track the costs associated with each unique job or order, suitable for customized or non-repetitive products.

Direct Labor Cost

The wages and other costs for labor that is directly involved in the production of goods.

Manufacturing Overhead

All manufacturing costs except direct labor and direct materials, including maintenance and utilities.

Direct Labor Cost

The wages and benefits paid to workers who are directly involved in the production of goods or the provision of services.