A Provision in an Insurance Policy That Limits the Amount

question 95

Multiple Choice

A provision in an insurance policy that limits the amount of loss that the policy covers regardless of the extent of the damage is known as a:

• A)security deposit.
• B)coverage ceiling.
• C)policy limit.
• D)deductible.
• E)loss premium.

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing ownership interest.

Total Revenues

The complete income received by a company from its fundamental operations, such as selling goods or offering services.

Dividends

Earnings distributed to shareholders, typically in the form of cash or additional shares, from a company's profits.

Common Stockholders

Individuals or entities that own shares of common stock in a corporation, giving them rights to dividends and voting in shareholder meetings.