A Provision in an Insurance Policy in Which an Initial

question 36

Multiple Choice

A provision in an insurance policy in which an initial amount of loss is not covered by the policy and must be paid by the insured is known as a:

• A)security deposit.
• B)market imperfection.
• C)policy limit.
• D)deductible.
• E)loss premium.

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Definitions:

EPS

Earnings Per Share represents the fraction of a firm's profits designated for each share of its common stock, serving as a financial metric.

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout, typically to conserve the company's cash.

Capital Accounts

The accounts that show the net worth of a company or individual, including contributions from owners or partners and retained earnings.

Market Price

The current value at which an asset or service can be bought or sold in the marketplace.