When There Is an Ambiguity in an Insurance Policy, the Provision

question 20

True/False

When there is an ambiguity in an insurance policy, the provision generally is interpreted against the insurance company.

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Definitions:

Receivables

Money owed to a company by customers or clients for goods or services that have been delivered or used but not yet paid for.

Cost Method

An accounting approach used for recording investments, where the investment is recorded at its acquisition cost without any subsequent change in its value unless there is an impairment or disposal.

Equity Method

An accounting method used to record investments in which the investor has significant influence but not full control.

Total Dividends

The total sum of money paid to shareholders out of a company's earnings.