Insurance Coverage Is Never Effective Until a Formal Written Policy

question 9

True/False

Insurance coverage is never effective until a formal written policy is issued.

---

Definitions:

Royalty Fees

The ongoing payments that franchisees pay to franchisors—usually a percentage of gross sales.

Gross Sales

The total revenue generated from goods and services sold by a company before any deductions are made for returns or discounts.

Advertising Fees

Advertising Fees are charges incurred for the promotion of products, services, or a brand through various advertising channels and media, aimed at reaching a wider audience and increasing sales.

Disclosure Statement

A document that outlines critical information about a transaction or investment, required by law to be presented to a potential buyer or investor.