The agents submits to the insurance entity a statement of all policies issued or due during the current month, and the net amount of the statement is subsequently to be paid in accordance with the agency agreement, is a account current of:
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A. B. C. D.C
The statement in question pertains to the submission of a list of all policies issued or due during the current month, along with the net amount. This statement is then used to determine the payment to be made based on the agency agreement. The account being referred to is known as an "account current."
An account current is a financial record that summarizes the transactions between two parties over a specific period, usually a month. It provides a snapshot of the financial relationship between the agent (submitting the statement) and the insurance entity. The purpose of maintaining an account current is to track and settle financial obligations accurately.
Let's analyze each answer choice to determine the most suitable one:
A. Insurance billing: This term generally refers to the process of invoicing policyholders for their insurance premiums. It is not directly related to the submission of a statement or the net payment to be made in accordance with an agency agreement. Therefore, this choice is not the most appropriate.
B. Direct billing: This term typically involves the insurance entity sending bills or invoices directly to policyholders for premium payment. It does not align with the scenario described in the question, where the agent submits a statement and the net amount is subsequently paid. Thus, this choice is not the correct one.
C. Rendering basis: This term is not directly related to the scenario described in the question. "Rendering basis" generally refers to a method of recording revenue and expenses based on the completion or delivery of services. Since the question specifically mentions policies issued or due during the current month, the concept of rendering basis does not apply. Hence, this choice is incorrect.
D. Billing basis: This term refers to the method by which bills or invoices are generated and issued for payment. While it is related to the billing process, it does not specifically address the submission of a statement and subsequent net payment based on an agency agreement, which is the key aspect of the scenario described in the question. Therefore, this choice is not the most suitable.
Based on the analysis above, the most appropriate answer would be C. Rendering basis.