The Effectiveness of an Exception to Coverage Is Limited By

question 36

Multiple Choice

The effectiveness of an exception to coverage is limited by:

• A) strictly interpreting the exception to coverage against the insurer.
• B) placing on the insurer the burden of proving that the exception applies.
• C) both a.and b.
• D) neither a.nor b. ,since exceptions to coverage are not generally permissible.

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Definitions:

Equivalent Units

A concept used in process costing to convert partially completed units into a number of equivalent fully completed units.

Conversion Costs

Costs associated with converting raw materials into finished goods, typically comprising labor and overhead expenses.

Materials Costs

Represents the expense incurred from acquiring raw materials used in the production of goods or services.

Process Costing

A costing method used in manufacturing, where costs are allocated to batches or processes, suitable for homogeneous products.