Which of the Following Is Not a Characteristic of an Umbrella

question 98

Multiple Choice

Which of the following is not a characteristic of an umbrella policy?

• A) It provides additional liability insurance.
• B) It replaces other policies.
• C) It protects wealth.
• D) It is optional coverage.

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Definitions:

Inflation Rates

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Maturity Risk

The risk that arises from the uncertain future value of investments that have a fixed earnings rate and a fixed maturity date.

Inflation Adjustment

A modification made to financial statements or figures to account for the effects of inflation.

Inflation Rates

The rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of money.