Hernando and Margarita Have Decided to Take Out an Umbrella

question 96

Multiple Choice

Hernando and Margarita have decided to take out an umbrella policy from an insurance company. The main reason they would probably want to do this would be to:

• A) protect against major disasters, which are known as "rainy days."
• B) ensure that any children they have will be guaranteed the right to buy insurance at some future date.
• C) save money by having one company provide a variety of different types of coverage.
• D) take out one life insurance policy that covers both of them.

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Definitions:

Certified Check

A check for which the issuing bank guarantees the availability of funds by verifying the drawer's signature and setting aside the check amount, thus ensuring payment.

Bankrupt

A legal status of a person or entity that cannot repay debts to creditors and has sought relief through bankruptcy proceedings.

Postdated Check

A check written with a date in the future, preventing the check from being deposited or cashed until that date.

Properly Payable

Refers to checks or drafts that meet all criteria for payment by the bank on which they are drawn, in accordance with the account holder's instructions and the bank's agreement with the customer.