Which of the Following Statements About the Liability Limits of the PAP

question 11

Multiple Choice

Which of the following statements about the liability limits of the PAP is (are) true?
I.The policy can be written with split limits of liability.
II.Prejudgment interest is considered part of the damage award and is subject to the policy limit of liability.

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

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Definitions:

Proportional

Proportional pertains to a relationship or ratio where changes in one quantity correspond directly with changes in another.

Excise Taxes

Taxes paid on specific goods and services, such as tobacco and fuel, intended to raise revenue and discourage consumption of these items.

Progressive

relates to a taxation system where the tax rate increases as the taxable base amount increases, often aimed at redistributing income to achieve a more equitable society.

Corporate Income Tax

A tax imposed on the net income of corporations, calculated on the basis of the business's profit, contributing to government revenues.