Which of the Following Is Not a Feature of the Terrorism

question 67

Multiple Choice

Which of the following is not a feature of the Terrorism Risk Insurance Act of 2002?

• A) Losses that exceed $100 billion are not covered.
• B) The law does not apply to acts of international terrorism when losses are less than $5 million.
• C) Government pays 50 percent of losses in excess of $100 billion.
• D) Government pays 90 percent of the losses.

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Definitions:

Salvage Value

The estimated residual value of an asset at the end of its useful life, representing what it could potentially be sold for or scrapped.

Book Value

The net value of a company's assets minus its liabilities and intangible assets, often used to determine a company's actual value.

Double-declining-balance

A method of accelerated depreciation where the depreciation expense decreases over time, doubling the rate of straight-line depreciation.

Salvage Value

The forecasted resale price of an asset at the end of its service life.