All of the following statements about conditions under a Homeowners 3 policy are true EXCEPT
A) If an insurer broadens coverage without an additional premium during the policy period, the broadened coverage applies immediately to the present policy.
B) A waiver or change in any policy provision must be approved in writing by the insurer to be valid.
C) The insurer must give written consent for an assignment of the policy to be valid.
D) If the named insured dies, coverage automatically ceases with respect to any property of the deceased.
Question 2
Jones, Inc. has a current ratio equal to 1.40. Which of the following transactions will increase the
company's current ratio?
A) The company pays back 50,000 of its long-term debt.
B) The company collects 500,000 of its accounts receivable.
C) The company sells 1 million of inventory on credit.
D) The company writes a 30,000 check to pay off some existing accounts payable.
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