Tony Has an Unendorsed Personal Auto Policy Which Provides Medical

question 40

Multiple Choice

Tony has an unendorsed Personal Auto Policy which provides medical payments coverage.Under which of the following circumstances would the injured person be eligible for benefits under Tony's policy?
I.A friend in the car is injured while Tony is driving a covered auto.
II.A passenger on a motorcycle driven by Tony is injured when Tony hit another vehicle.

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

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Definitions:

Impairment Of Goodwill

The write-down of the goodwill account when the carrying value on the balance sheet exceeds the fair market value, indicating that the asset is not as valuable as previously thought.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is kept by the company for reinvestment.

Brand Name

A unique design, sign, symbol, or words, or a combination of these, employed in creating an image that identifies a product and differentiates it from its competitors.

Parent-Company Extension Method

An accounting method used in consolidation that treats investments in subsidiaries as if they are direct extension of the parent company's operations, integrating their accounts directly.