CustomerEvaFryLanceLandauMarcieMoffetJoseReisTotalAmount$6,50011,2003,8003,500$25,000. \end{array} A reward clause Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. You should choose ____ insurance. The basic purpose of insurance is to protect you from losses! The purpose of this principle is to set back the insured to the same financial position that existed before the loss or damage occurred. Rodney and Toni are a young couple with two small children. An insurance policy is a contract in which an individual or an organization gets financial protection and compensation for any damages by the insurer of the insurance company. liability. It adds to the company's pool of funds. d. risk retention. \text { April } & \$ 250,000 \\ Policies with very high deductibles are typically less expensive because the high out-of-pocket expense generally results in fewer small claims. Methods of Providing Indemnity Cash Payment: This is the usual way of making payment of a claim. d. fixed time. b. straight life. Which job would give Jorge more net job benefits for a year? Definition: Insurance refers to a contractual arrangement in which one party, i.e. \text{Lease payments} &\$ 40,000& \$ 40,000\\ Major downturns in the economy The insurance company pays you or someone you choose if something bad happens to you. d. all of the above. 3160\ \text{days} & \hspace{4pt}100,000 & \hspace{4pt}3\\ \text{Eva Fry} & \$\hspace{5pt}6,500\\ Simply put, most permanent life insurance policies have the ability to build cash value over time. Life, health, homeowners, and auto are the most common forms of insurance. Risks come in two basic forms, pure risk and speculative risk. People are less worried when they know they have protection from risk. In exchange for an annual fee, beneficiaries receive access to free or low out-of-pocket cost services, such as routine doctor visits. \text { Percent collected in the second month after the sale } & 5 prevention. e. expense levels. tax-advantaged investments. In simple words, insurance is a contract, a legal agreement between two parties, i.e., the individual named insured and the insurance company called insurer. e. insurance. \hspace{15pt}\text{Total receivables} & \underline{\underline{\$650,000}} The insurance company covered the rest of the cost of the visit.When Maria's mother went to the hospital, her family was responsible for paying the first $1,000 of the bill. a. income levels. The property damage is caused by a natural disaster, such as a flood. OK International wrote off the following accounts receivable as uncollectible for the year ending December 313131, 201020102010: CustomerAmountEvaFry$6,500LanceLandau11,200MarcieMoffet3,800JoseReis3,500Total$25,000\begin{array}{lr} \text{Total} & \underline{ \underline{ \$25,000}} Insurance underwriting is best described as: The process used by insurers to decide who can be insured and to determine applicable rates that will be charged for premiums 4. \text{EBIT}& (\$ 130,948) &\$ 190,428\\ If an insured event occurs and you suffer damages, the insurance company pays you up to the agreed amount of the insurance policy. Journalize the write-offs and the year-end adjusting entry for 201020102010 under the allowance method, assuming that the allowance account had a beginning balance of $22,500\$22,500$22,500 on January 111, 201020102010, and the company uses the analysis of receivables method. Answer the question to help you recall what you have read. This would be an example of risk assumption. c. change of policy. Under which circumstance would someone need disability insurance? A firm understanding of these concepts goes a long way in helping you choose the policy that best suits your needs. It is probably the single most important part of an academic paper. For instance, whole life insurance may or may not be the right type of life insurance for you. Thus, misfortunes that could be crushing to one can be made bearable for all. 31 days The basic purpose of insurance is to safeguard and shield people from unexpected events , dangers , and risks. \text{EBT} &(\$ 266,960) &\$ 146,600\\ \text{Increase in accruals}& 353,600\\ The concept of insurance is very simple to understand. e. b and c. Key features found in most life insurance contracts include Today, home owners, car owners, businesses and institutions have available to them a wide range of insurance products, many of which have become a necessity for the functioning of a free-enterprise economy. Check all that apply. You must help her answer the following questions for Campo. Whole life insurance is permanent life insurance that pays a benefit upon the death of the insured and is characterized by level premiums and a savings component. The insurance policy must be in place. The insured party must file a claim. In the insurance world there are six basic principles that must be met, ie insurable interest, Utmost good faith, proximate cause, indemnity, subrogation and contribution. Who processes the claims in insurance? b. Interest only d. the contingent beneficiary or beneficiaries \end{array}} c. whole life insurance. As a result, Watkins was informed that changes would have to be made-and quickly; otherwise, he would be fired. d. needs analysis a. . Life Insurance: What It Is, How It Works, and How To Buy a Policy, Fire Insurance: Definition, Elements, How It Works, and Example, Auto Insurance: Definition, How It Works, Coverage Types & Costs, Coinsurance: Definition, How It Works, and Example, Whole Life Insurance Definition: How It Works, With Examples, Personal Injury Protection: What it is, How it Works. 030\ \text{days} & \$480,000 & \hspace{12pt}1\%\\ \hline protection from creditors and lawsuits. Its board of directors, which consisted of its president, vice president, and major stockholders (all of whom were local businesspeople), was most upset when directors learned how the expansion was going. A person's house was seriously damaged during a natural disaster. d. a fluctuating premium. That company still exists today. The needs approach to evaluate the right amount of life insurance is the most accurate method to determine the proper amount of death benefits. What type of life insurance has Kurt purchased? 5.) a. \text{Payment of cash dividends}& (11,000)\\ Term and whole life insurance policies are regulated by state insurance commissioners. The insurance company changes its policies after property damage occurs. The insurance company must verify the claim. The premium is the consideration paid by the insuredusually annually or semiannuallyfor the insurer's promise to reimburse. At first operated single-handedly by an entrepreneur named Nicholas Barbon, in 1680 it was organized as a stock company known as the Fire Office. e. 200, 50, Chapter 23: Male Genitalia & Rectal Assessment, Netcashprovidedbyoperatingactivities, Additionstoproperty,plant,andequipment, Netcashprovidedbyfinancingactivities, Totaloperatingcostsexcludingdepreciationandamortization, Addition(subtraction)toretainedearnings, Fundamentals of Financial Management, Concise Edition, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Daniel F Viele, David H Marshall, Wayne W McManus. \text{Accounts receivable}& 632,160& 351,200\\ 1. loans. \text{Cash at beginning of year} &57,600\\ c. limited pay For the most recent year presented in your proxy, what was the total annual compensation received by the chairman and CEO of the company. d. Coinsurance clause The most valuable single technique in determining how much life insurance is needed is: Underwriting helps protect life insurance companies from which of the following? Annual term insurance premiums increase as you get older while whole life insurance premiums remain constant. It does this substituting payment of a small, known feean insurance premiumto a professional insurer in exchange for the assumption of the risk a large loss, and a promise to pay in the event of such a loss. Let's dig into Insurance 202: the basic types of insurance. b. primarily sold to college students. a. Myers-Briggs indicator. Its aim is to reduce financial uncertainty and make accidental loss manageable. He was required to pay the first $500 of his repair costs, and then the insurance company covered the rest. Its aim is to reduce financial uncertainty and make accidental loss manageable. d. Renewable b. is a form of endowment insurance. d. $66,666 each to Jack, Mimi, and Ann What must happen in order for an insurance company to make a payout? The needs analysis method of determining the amount of life insurance considers Most people prefer to pay health insurance premiums rather than pay out-of-pocket for medical expenses because: Medical costs can be extremely high, and insurance is more affordable than paying out-of-pocket for a hospital stay. The larger the number of premium payers, the more accurately insurers are able to estimate probable losses thus calculate the amount of premium to be collected from each. Which of the following companies does not rate the financial strength of life insurance companies? c. risk assessment all of the above. Negotiating a Settlement With an Insurance Company. e. revised as needed. The first fire insurance company was founded in London the following year. \text{DPS} & \$ 0.110 & \$ 0.220\\ Buying life insurance protects your spouse and children from the potentially devastating financial losses that could result if something happened to you. \end{array}} Basic purpose of insurance :- Insurance is one of the important fields of economy. A successful subrogation means a refund for you and your insurer. a. c. single premium True Recently your puppy chewed up your shoes and you had to go buy another pair. ____ can be both an advantage and a disadvantage of universal life insurance. The right to insure arising out of a financial relationship, between the insured to the insured and legally recognized. What is said to be the first auto liability policy writtenactually a policy for horse-drawn carriages made applicable to an automobilewas issued in 1887 to one Gilbert Loomis of Westfield, Connecticut. There are two main types of life insurance: term and permanent. The basic purpose of insurance is to provide protection. a. The basic purpose of insurance is to _____ Protect yourself from economic losses 2. A person was in a car accident and cannot work for several months. True False Question 9 (1 point) The basic purpose of insurance is to protect you from the results of accidental losses. What will be the surrender value of LIC policy after 5 years? What Is Insurance?, Insurance Information Institute. Is structural damage covered by insurance? a. continuous premium Bennett has the following accounts receivable collection experience: Percentcollectedinthemonthofsale25Percentcollectedinthemonthafterthesale68Percentcollectedinthesecondmonthafterthesale5\begin{array}{lr} With regard to health insurance, people who have chronic health issues or need regular medical attention should look for policies with lower deductibles. d. term life Insurance is a contract in which an insurer indemnifies another against losses from specific contingencies or perils. The FDIC, for example, claims in its mission statement to "maintain stability and public confidence in the nation's financial system." The purchase of insurance is a common form of _____ by the insured. What two agricultural practices contribute to the region's environmental problems? \text{Total operating costs excluding depreciation and amortization}& \$6,047,988 &\$3,222,672\\ For a general life insurance policy, the maximum amount that the insurer will pay is referred to as the face value, which is the amount paid to a beneficiary upon the death of the insured. b. limited pay The purchase of insurance is a common form of which risk management technique: a. risk retention b. risk transfer c. risk assumption d. risk avoidance e. loss control B Underwriting is best described as a. the process of deciding whom the company will insure and the applicable premiums it will charge. These contracts require policyholders to identify and describe the property that is covered and to specify the causes of loss, called , for which a policyholder will be compensated in the event of loss. \text{More than}\ 120\ \text{days} & \hspace{12pt} \underline{5,000} & 40\\ \text { August } & 300,000 The most common types of personal insurance policies are auto, health, homeowners, and life. c. the insured's estate Subrogation is a part of all indemnity claims. Answer: Its aim is to reduce financial uncertainty and make accidental loss manageable. b. \text { July } & 295,000 \\ technological improvements b. a. term So finding the price that is right for you requires some legwork. You can verify FINRA registration by visiting BrokerCheck or contacting your state securities commissioner. b. exchanged for cash. A hospital administrator decides to review the costs of three departments of the organisation which are summarised in the table. 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