A Policy That Supplements Your Basic Personal Liability Coverage Is

question 5

Multiple Choice

A policy that supplements your basic personal liability coverage is called a(n)

• A) Endorsement.
• B) Homeowner's insurance.
• C) Medical payments coverage.
• D) Supplementary policy.
• E) Umbrella policy.

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Definitions:

Fixed Costs

Costs that do not change with the level of output or activity, such as rent or salaries.

Financial Advantage

A benefit gained in terms of monetary gains or improved financial position, often resulting from investments, operational efficiency, or strategic decisions.

Fixed Expenses

Costs that do not change with the level of production or sales activity, such as rent, salaries, and insurance.

Contribution Margin

The portion of sales income available to cover fixed expenses and contribute to net profit, after covering all variable expenses.