Which Types of Losses Are Least Likely to Be Covered

question 83

Multiple Choice

Which types of losses are least likely to be covered by fire insurance policies?

• A)Losses from friendly fires
• B)Losses from hostile fires
• C)Losses from fires that started outside the property
• D)Losses from smoke and heat that cause indirect damage

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Definitions:

Selling Price

The amount for which a good or service is sold to customers, determining the revenue generated from sales.

Variable Costs

Expenses that vary in relation to the volume of products or services a company delivers.

Hourly Wage Rates

The amount of money paid for each hour of work performed, commonly used in various employment contexts.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much of the revenue contributes to covering fixed costs and generating profit.