Reasons for the Unearned Premium Reserve Include Which of the Following

question 21

Multiple Choice

Reasons for the unearned premium reserve include which of the following?
I.To pay losses that occur during the policy period.
II.To pay premium refunds to policyholders in the event of cancellation.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Net Exports

The difference between a country's total value of exports and its total value of imports; a key component of a nation's GDP.

U.S. Bonds

Debt securities issued by the United States government as a way of borrowing money from investors.

Aggregate Demand

The aggregate demand within the economy, reflecting the total goods and services sought after at a specific price level during a particular time frame.