Which of the Following Is True of Insurance Contracts

question 48

Multiple Choice

Which of the following is true of insurance contracts?

• A)Some statutes require them to be in writing.
• B)Contracts for property insurance are usually within the statute of frauds.
• C)Once formed,insurance contracts cannot be amended or reformed.
• D)Insurance contracts are governed by federal laws.

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Definitions:

Additional-Paid In Capital

The amount of money paid by investors above the par value of the shares, also known as share premium.

Financing Sources

Various methods a company uses to raise capital or funds, including debt financing, equity financing, and internal generated funds.

Total Assets

The sum of all assets owned by an entity, including both current and noncurrent assets, as reported on the balance sheet.

Purchasing Supplies

The act of obtaining materials, goods, or tools needed to operate a business or complete a task.