The ________ Says That an Insured Person Cannot Collect More

question 65

Multiple Choice

The ________ says that an insured person cannot collect more than the actual loss from an insurable risk.

• A) law of large numbers
• B) rule of indemnity
• C) law of diminishing returns
• D) rule of finite loss coverage

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Definitions:

Balance Sheet

A report that encapsulates a business's assets, debts, and owner's equity at a certain date.

Financial Leverage

The use of borrowed funds with a fixed cost in an effort to amplify the potential return to shareholders.

Bonds Payable

Long-term liabilities represented by documents promising to pay a specified sum of money at a future date plus periodic interest payments to bondholders.

Accounts Payable

Represents the amounts owed by a company to its creditors for goods and services purchased on credit.