The Basic Purpose of Insurance Is to

question 153

Multiple Choice

The basic purpose of insurance is to

• A) protect your health.
• B) protect you from losses.
• C) supplement your income.
• D) shield you from bad decisions.
• E) none of these

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Definitions:

Fair Value

The cost at which a property is exchanged in a structured deal between parties in the market on the date of evaluation.

Long-Term Liabilities

Debts or obligations that are due after a period of one year or more.

Consolidated Balance Sheet

A financial statement that shows the total assets, liabilities, and shareholders' equity of a parent company and its subsidiaries as if they were a single entity.

Fair Value

The estimated market valuation for an asset or liability based on current market conditions and informed buyer and seller perspectives.