With Respect to Property Insurance,the Insurable Interest Requirement

question 16

Multiple Choice

With respect to property insurance,the insurable interest requirement:

• A) need only be satisfied at the time the policy is issued.
• B) must be satisfied both at the time the policy is issued and at the time of the loss.
• C) will be satisfied only if the insured owns the property in fee simple absolute.
• D) will be satisfied by an insured who possesses a leasehold interest in the property.

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Definitions:

Standard Cost Card

A document that lists the standard costs associated with producing a specific product or performing a service.

Income Statement

A financial statement that presents the revenues and expenses and resulting net income or net loss of a company for a specific period of time.

Work in Process Inventory

Goods that are in the process of being manufactured but are not yet completed.

Direct Labor Hour

A measure of the labor time directly involved in the production of goods, often used in costing and budgeting.