Bernice is an underwriter. She is reviewing a commercial crime coverage application. The coverage will be written using the discovery form
Bernice is concerned that a large undiscovered loss may exist prior to the policy's inception date. Which provision should Bernice add to the policy to protect the insurer against liability for such previous losses?
A) extended reporting endorsement
B) loss sustained during prior insurance provision
C) waiver of inventory provision
D) retroactive date endorsement
Answer: D
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A corporation has 3000 shares, 10% preferred stock of $55.00 par preferred stock, and 6000 shares of common stock outstanding. The net income for the year is $300,000. Calculate earnings per share. (Round your answer to the nearest cent.)
A) $55.00 B) $47.25 C) $50.00 D) $100.00
An example of an item that should be reported as a prior period adjustment is the
a. collection of previously written off accounts receivable. b. payment of taxes resulting from examination of prior years' income tax returns. c. correction of an error in financial statements of a prior year. d. receipt of insurance proceeds for damage to a building sustained in a prior year.
The plural possessive of boss is ________
A) bosses B) bosses' C) boss's
Which of the following occurs if both a principal and an agent cannot agree on the compensation?
A) The principal is no longer bound by the duty of compensation. B) Compensation will be calculated on the basis of what is reasonable or customary. C) Compensation will be calculated according to government wage rates. D) Compensation will be determined by the full faith and credit clause of the U. S. Constitution.