Melody's car was damaged when another driver ran a stop sign and hit her car. Melody decided to collect from her own insurer and to let her insurer recoup the loss payment from the negligent driver who hit her
What fundamental legal principle is illustrated in this scenario?
A) the principle of utmost good faith
B) the principle of insurable interest
C) the principle of subrogation
D) the principle of reasonable expectations
Answer: C
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Caltran, Inc completed manufacturing Job 445
It included $350 of direct materials cost, $1,240 of direct labor cost, and $500 of allocated manufacturing overhead. Which of the following is the correct journal entry needed to record the completed job? A) Work-in-Process Inventory 2,090 Finished Goods Inventory 2,090 B) Finished Goods Inventory 2,090 Materials Inventory 2,090 C) Work-in-Process Inventory 1,590 Cost of Goods Sold 1,590 D) Finished Goods Inventory 2,090 Work-in-Process Inventory 2,090
Reinsurance can be used to provide protection against catastrophic loss.
a. true b. false