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List and Describe the Three Types of Budgets That Are

question 48

Essay

List and describe the three types of budgets that are included in the master budget.


Definitions:

Incontestability Clause

A clause in a policy for life or health insurance stating that after the policy has been in force for a specified length of time (usually two or three years), the insurer cannot contest statements made in the policyholder’s application.

Insurance Policy

A contract between an insurer and a policyholder that outlines the terms and conditions under which the insurer agrees to compensate for specific losses.

Eligibility

Refers to the suitability or qualifications required to be selected or to participate in something, often used in contexts of programs, benefits, or competitions.

Liability Insurance Policy

A financial product that provides the insured party with protection against claims resulting from injuries and damage to people and/or property.

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