What Is the Name Given to the Clause in an Insurance

question 12

Multiple Choice

What is the name given to the clause in an insurance policy that makes it uneconomical to underinsure one's property?

• A) Indemnity
• B) Endorsement
• C) Coinsurance
• D) Extended

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Definitions:

LIFO Method

An inventory valuation method that stands for "Last In, First Out," assuming that the most recently produced items are sold first.

Cost of Goods Sold

The immediate financial costs tied to the manufacture of goods a company sells, including labor and materials.

Merchandise Inventory

Goods or products that a company holds for the purpose of selling to customers in the ordinary course of business.

Damaged Goods

Items that are physically harmed and are reduced in value, typically making them unsellable at full price.