___________ Costs Are Not Associated with Any Specific Product or Class

question 48

Multiple Choice

___________ costs are not associated with any specific product or class of products and are typically charged as a fixed percentage of some direct cost.

• A)General and administrative
• B)Overhead
• C)Direct
• D)Indirect

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Definitions:

Duty To Defend

The duty to defend entails a legal obligation, often found in insurance policies, where the insurer must provide legal defense to the insured party in case of a lawsuit that falls under the policy coverage.

Compensatory Damages

Monetary awards issued to a plaintiff to compensate for actual losses, injuries, or damages they have incurred.

Liability Case

A legal dispute or lawsuit in which the plaintiff seeks damages from the defendant due to injury or loss caused by the defendant’s actions or negligence.

Increase Of Hazard Clause

A provision in insurance policies allowing the insurer to void the policy if the risk insured against significantly increases.