Which of the following statements about the medical payments coverage of the PAP is true? A) The amount of the benefit typically is $100,000. B) Covered expenses must be incurred within 30 days of the accident. C) Covered expenses include the cost of funeral services. D) The benefit limit applies on a per-accident basis rather […]
All of the following statements about Part D (coverage for damage to your auto) of the PAP are true EXCEPT A) Coverage may be purchased with or without collision insurance. B) Losses are paid regardless of fault. C) Coverage applies to a nonowned auto occasionally driven by an insured. D) No coverage is provided for […]
The realized rate of return, or holding period return, is equal to the holding period dollar gain divided by the price at the beginning of the period. Indicate whether the statement is true or false ANSWER TRUE
All of the following are considered to be uninsured vehicles for purposes of the uninsured motorists coverage of the PAP EXCEPT A) a vehicle owned by an individual who is insured, but for less than the amount required by the state’s financial responsibility law. B) a hit-and-run vehicle, the ownership of which cannot be determined. […]
Which of the following is a covered person under the medical payments coverage of the PAP? A) a family member of the named insured if struck by an auto while crossing the street B) a pedestrian struck by the named insured’s auto C) the named insured while she is operating her car as a taxi […]
Which of the following statements about the uninsured motorists coverage of the PAP is true? A) The coverage usually applies only to property damage. B) The coverage applies only if the uninsured motorist is legally liable. C) Unless higher amounts are purchased, the maximum benefit is normally limited to $1,000. D) A covered person’s only […]
A high debt ratio can be favorable because higher leverage may result in a higher return on equity. Indicate whether the statement is true or false ANSWER TRUE
Inventories are considered fixed assets because inventory levels remain fairly constant throughout the year. Indicate whether the statement is true or false ANSWER FALSE
Executive compensation in the United States A) is dominated by performance-based compensation designed to reduce agency problems. B) cannot be linked to stock prices as this would create a conflict of interest with existing shareholders. C) is well below levels in Europe and Asia. D) is dominated by performance-based compensation that ensures fair and just […]
Joyce was injured by an uninsured drunk driver while she was riding in a friend’s car. Joyce and her friend each have a PAP with an uninsured motorists limit of $50,000. How much will be paid by each policy if it is determined that Joyce has $70,000 of bodily injuries? A) Each policy will pay […]
