Policy reserves for life insurers are the loss reserves equivalent of P&C insurers. True False
Q: Identify how life insurance fund appears in the financial statements? a. The debit side of the…
A: Life Insurance Fund- It is a fund which helps the entity in making payment for its obligation which…
Q: The interest rate is the price paid to obtain debt capital. True False
A: Banks, financial institutions, or private lenders, each one of the lending parties charges interest…
Q: When speaking of debt rating, the higher the rate, the greater chance of it being paid in full, and…
A: A rating is given to debt securities to judge the quality and credit-worthiness of that securities.…
Q: What is the difference between insurance companies and pension funds?
A: Insurance and pensions funds are two quite different types of institutions.
Q: are, in essence, an insurance contract against the default of one or more borrowers.
A: A credit default swap (CDS) is a financial derivative or contract that allows an investor to "swap"…
Q: Which of the following does not relate to credit risks? Select one: A. Credit risk is the…
A: Before answering the question, we should understand what Credit Risk means Credit Risk: It is the…
Q: Briefly describe the relationships between loss / combined ratios AND underwriting, marketing and…
A: Insurance: Insurance is a policy, addressed by an arrangement, where an individual or element gets…
Q: The contract between insured and insurer is O a. Coverage O b. Face value Oc. Policy O d. Premium
A: Insurance means where insurance company agree to pay the specified amount to insured person in case…
Q: A policy which runs for a fixed period or up to a particular age of the insured is called_
A: Insurance business is a type of business in which one company provides assurance to another company…
Q: risk pooling premium actuarially fair insurance premium deductible third party payer moral bazard
A: In the world of finance insurance is an important concept. Insurance is used for the purpose of risk…
Q: IDENTIFICATION: What area of insurance companies is faced with the risk that estimates of loss…
A: Insurance risk management is referred as an assessment as well as quantification of the financial…
Q: what are the pros and cons of being insured by a mutual insurance company vs a stock insurance…
A: There are two types of insurance companies: mutual insurance company and stock insurance companies.…
Q: A. Define interest rate risk and reinvestment risk. B. Why do banks and life insurance…
A: Risk refers to the potential losses that might be incurred by the investor from the investment made.…
Q: The policy holder who receives the coverage is called O a. Premium O b. Insured O. Face value O d.…
A: Insurance is a term used for the security provided in monetary terms by an insurance company to a…
Q: Who are front-line underwriters? What are premium volume and loss experience with the insurer? What…
A: Underwriters are the person who sell theshares on behalf of the firm. They are very useful for the…
Q: How does credit risk affect insurance companies
A: Credit risks affect insurance companies in a tangible and often direct manner.
Q: Insurance producers who must maintain Premium Fund Trust Accounts (PFTAS) may withdraw funds from…
A: The withdrawal from premium fund trust accounts are permitted for following purposes 1) As payment…
Q: What is the difference between mutual and stock insurance company?
A: Risk is an inseparable part of investment. To reduce the risk, different techniques are used.…
Q: Briefly explain the following characteristics of long-term care insurance. Protection against…
A: In long-term care insurance plans there are many approaches to obtain inflation insurance cover. The…
Q: The company selling the insurance policy is the _________________. a. Insurer b. Policy c. Premium…
A: Insurance is a means of protection from financial loss.
Q: Define bond insurance
A: Bond Insurance is also known as financial guarantee insurance. As the name suggests, it means that…
Q: The price per unit of insurance is called the O premium. loss adjustment expense. O rate. O loss…
A: Premium is the amount paid to an insurance company for providing risk coverage. Loss adjustment…
Q: Describe the Investments in Life Insurance Policies.
A: Life Insurance policies are to provide financial support to the beneficiaries and dependents after…
Q: what is one example of a risk management strategy used by insurance companies to mitigate…
A: An underwriter's potential loss is known as underwriting risk. Underwriting risk in insurance can…
Q: Which of the following would not appear in the asset section of an insurance company's balance…
A: Insurance company: For different forms of insurance coverage, insurance firms analyse the risk and…
Q: What is the main difference between stock life insurance companies and mutual life insurance…
A: Insurance companies are often organized as either a stock life company or a mutual company. In a…
Q: Which principles ensures that an insured does not profit by insuring with multiple insurers?
A: The Principles of Contribution ensures that an insurance that an insured does not profit by insuring…
Q: Which type of insurance has no cash value? Term life insurance Universal life insurance Variable…
A: Insurance refers to the concept of creating a policy to safeguard any sort of financial risk by…
Q: Which of the below is not a form of retirement savings plans Group of answer choices Exchange…
A: Retirement savings plan are plan generally for retirement planning.
Q: The price per unit of insurance is called the O premium. O loss adjustment expense. O rate. O loss…
A: Premium is the amount the insured needs to pay the insurer for covering any losses that the insured…
Q: what underwriting risk. what are two risks faced by insurance companies?
A: The underwriting risk is the risk which is borne by the underwriter due to the inaccurate…
Q: amortized debt premium should be reported on the balance sheet of the insurer as a Group of answer…
A: The bonds are issued at premium or discount to face value of bond. The issuer has to pay the premium…
Q: Which of the following does not relate to credit risks? a. Credit risk is the possibility of losing…
A: First of all we need to understand the meaning of Credit risk- Credit risk is the probability of…
Q: of the follwoing are financial claims
A: Pension obligation These entitle the employee to make a financial claim against the employer. Bonds…
Q: What are the two types of long-term debt? Payables and receivables Term loans and bonds…
A: Long-term debt refers to debt obligations with a maturity of more than one year. Long-term debt is a…
Q: Explain current liabilities are riskier than long-term liabilities?
A: Liabilities: A liability is a sum of money owed by the company towards external entities like a…
Q: Which of the following statements about life insurance is NOT accurate? a) permanent insurance puts…
A: Permanent life insurance is the insurance policy that covers the whole life whereas term life…
Q: Current liabilities are usually recorded and reported in financial statements at their ful maturity…
A: Financial statements: Financial statements are the final reports of a company, prepared at the end…
Q: Why are the credit default swaps, in essence, an insurance contract against the default of one or…
A: Credit default swaps are derivatives contract between two investors in which investors who has lend…
Q: Explain why the Investment Portfolio structure (that is, the types of investment securities they…
A: Portfolio investment is defined as the ownership of bonds, stocks, and other financial assets along…
Q: The default subsequent measurement base for financial liabilities is: Select one: amortised cost…
A: Financial liabilities mean the obligation of the business that it needs to pay outside the business.…
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- The policy holder who receives the coverage is called ________________. a. Premium b. Face value c. Insured d. InsurerInsurance policies form the basis of an insurance company’s ________________. a. Financial securities b. Financial liabilities c. Financial assets d. Net policy reservesThe company selling the insurance policy is the _________________. a. Insurer b. Policy c. Premium d. Insured
- 1. The significant risk that is transferred from the policyholder to the issuer of an insurance contract is:a. Lapse or persistency riskb. Financial riskc. Expense riskd. Insurance risk2. Under the general model of PFRS 17, a group of insurance contracts is initially measured at:a. The fulfillment cash flowsb. The contractual service marginc. Either a or bd. Both a and b3. A group of insurance contracts is subsequently measured at:a. The liability for remaining coverageb. The liability for incurred claimsc. Either a or bd. Both a and b4. According to PFRS 17, an insurance contract is NOT derecognized when:a. Expiredb. Terms have been modified, and the modification is not substantivec. Terms have been modified, and the modification is substantived. Extinguished5. According to PFRS 17, an accounting service result is recognized in:a. Profit or lossb. Other comprehensive incomec. Statement of financial positiond. Partly in profit or loss, and partly in other comprehensive incomeUse the…Which of the following is a type of captive formed to write most types of liability insurance coverage? A. Risk orientation groups B. Risk reduction groups C. Risk retention groups D. Risk avoidance groupsWhich of the following are a type of insurance? (select all that apply) a. Performance Bond b. Inland Marine CRFP d. Umbrella
- what underwriting risk. what are two risks faced by insurance companies?D4) Finance Explain why investees' ESG performance matters for insurers' investment profitability, and the methods to chooses the appropriate investees.Briefly describe the relationships between loss / combined ratios AND underwriting, marketing and claims performance / decisions for an insurer.
- describing how the element of "risk" factors into the concept of insurance. cite a specific type of insurance policy and indicate how risk will play into the issuance of the insurance policy.Who are front-line underwriters? What are premium volume and loss experience with the insurer? What is monitoring of underwriting decisions?An insurance refers to a signed agreement between the insured and the insurer. O a. Certificate O b. Premium O c. Security O d. Policy