Page Litton likes to use her credit card to buy gas since she can defer payment for 30 days. However, she notices that her dealer charges 3 cents more per gallon than if she paid with cash. Page estimates paying about $1. 00 a gallon for gas, and her monthly credit statement shows an APR […]
Date: September 19th, 2020
A Pony Express Armored Car was transporting bank receipts from six branch banks to the main bank. A group of robbers staged a daring robbery. They forced the armored car off the road, shot two guards, and took over $120,000 in cash. Which insuring agreement in a financial institution bond would cover the stolen money […]
Date: September 19th, 2020
Which type of business organization is subject to initial legal requirements? A) Sole proprietorship B) Limited liability corporation C) “C” corporation D) None of the above ANSWER C
Date: September 19th, 2020
Generally Accepted Accounting Principles (GAAP) is a set of principle-based accounting standards established by the Financial Accounting Standards Board (FASB). Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
What was the average annual rate of return on common stocks during the period 1926 to 2014? A) 10.1% B) 18.6% C) 9.5% D) 15.4% ANSWER A
Date: September 19th, 2020
Which type of business organization is the best for attracting new equity capital? A) Sole proprietorship B) Limited liability corporation C) General partnership D) A public corporation ANSWER D
Date: September 19th, 2020
Which of the following is an advantage of the general partnership form of business organization? A) double taxation B) limited liability of business owners C) low cost of formation D) easy ability to raise capital ANSWER C
Date: September 19th, 2020
All of the following are ISO commercial crime coverage exclusions EXCEPT A) dishonest acts committed by a named insured or partner of the named insured. B) indirect loss resulting from covered losses. C) theft committed by an employee of the named insured. D) losses from unauthorized trading in stocks and bonds. ANSWER Answer: […]
Date: September 19th, 2020
Which of the following statements is (are) true with respect to financial institution bonds? I. Fidelity coverage covers losses resulting from the dishonest acts of employees. II. Financial institutions usually insure their crime exposures through financial institutions bonds. A) I only B) II only C) both I and II D) neither I nor II c […]
Date: September 19th, 2020
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? […]
Date: September 19th, 2020
