d. special needs of dependents. Deductibles can apply per policy or per claim, depending on the insurer and the type of policy. All Rights Reserved. \begin{array}{lrr} e. variable life. \text{Total operating costs excluding depreciation and amortization}& \$6,047,988 &\$3,222,672\\ In return, the insurer pays for the financial damages in case of any harm to the insured person or object. Note that the probability that xxx assumes a value within the interval 2\mu \pm 2 \sigma2 is equal to 1. e. cash value. Simply put, most permanent life insurance policies have the ability to build cash value over time. There also are variations on thesevariable life insurance, variable universal life insurance and indexed universal life insurancewhich are considered securities and must be registered with the SEC. Rodney and Toni are a young couple with two small children. c. the insured's estate \text{Increase in accounts payable}& 378,560\\ There are also insurance policies available for very specific needs, such as kidnap and ransom (K&R), medical malpractice, and professional liability insurance, also known as errors and omissions insurance. A firm understanding of these concepts goes a long way in helping you choose the policy that best suits your needs. But what if there was a way to enjoy living benefits of life insurance during your lifetime? Protection Explanation: Hello! True Recently your puppy chewed up your shoes and you had to go buy another pair. e. Fixed amount, A ____ option allows a terminally ill insurance holder to sell an interest in the life insurance policy to an investor. Arbitration and mediation case participants and FINRA neutrals can view case information and submit documents through this Dispute Resolution Portal. Consumers benefit through the availability of a multitude of products and services, and the economy from the hundreds of thousands of jobs created within the insurance industry or supported by it. 221%of82, The basic purpose of insurance is to provide, If two people are invited to invest and become partners in a business, the business owners will then___ the risk. \text{Net cash provided by financing activities} &\$ 825,808\\ \text{Net income}& (\$ 160,176)& \$ 87,960\\ When you buy or lease a car, its important to protect that investment. The primary function of insurance is to maintain your existing level of wealth by protecting you against potential financial losses or liability as a result of unexpected events. It reduces consumers' co-payments. d. non-convertibility. The insured party must file a claim. d. term life C. 5- Central vacuole \hline a. Myers-Briggs indicator. b. the probate court technological improvements d. needs analysis c. limited pay In determining available resources that would be available after death, you would generally not consider It's a risk-management product to help cushion the financial blow of prolonged and expensive elder care or custodial care. c. $100,000 to Jack and $50,000 each to Mimi and Ann The probability of a loss occurring can be reduced by, having a fire extinguisher in your home is an example of loss prevention. Businesses require special types of insurance policies that insure against specific types of risks faced by a particular business. d. Fixed period Provide safety and security:- Insurance provides financial support and reduces uncertainties in business and human life. e. the insurance company keeps the proceeds. &2016 &2015\\ Unhappy suppliers were being paid late; and the bank was complaining about the deteriorating situation and threatening to cut off credit. The insurance company finds that a homeowner intentionally caused damage. Suppose xxx is a random variable best described by a uniform probability distribution with c=20c=20c=20 and d=45d=45d=45. Which job would give Jorge more net job benefits for a year? Many types of life insurance are available. Insurance underwriting got its name from the practice, in 17th century England, of private investors signing their names as guarantors, for a fee, under posted listings of marine voyages and cargoes. d. requires a savings function. False t/f Spreading risk among a large number of people is a major principle of insurance. It lowers the payout the company has to make. You want to pay premiums for 20 years and have your insurance premium obligations finished at that time, but you feel you will need life insurance for the rest of your life. Roland has purchased a new tablet. A renewable clause Car Insurance for Beginners Based on this profile, the insurer will establish a monthly premium. \text{Cash at beginning of year} &57,600\\ the best insurance available. d. premium refunds. d. $66,666 each to Jack, Mimi, and Ann Jorge Conseco can work for ABM, Inc. for $437 per week or Zeda, Inc. for$1,408 per month. The basic purpose of life insurance is to provide financial coverage to your loved ones in case you die. \text { August } & 300,000 A marine policy adapted to accommodate him probably was the first policy issued to insure an automobile as property. Therefore the answer is. Multiple people pay into the insurance company pool so that if any client experiences a disaster, there will be money to help cover it. If one of the boats was battered to pieces in the rapids, no merchant lost all his goods. The settlement option chosen by most beneficiaries is Check all that apply. c. risk assumption. Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. Your insurance company will process the information, and if they accept the claim, you'll receive reimbursement for any damages. When the automobile came along, insurance wasnt far behindto provide financial protection and peace of mind to car owners whose accidents, though few in the early days, nevertheless could be costly. d. 120 days 12 Likes, 0 Comments - Info Lowongan Kerja (@lokermalangsekitar) on Instagram: "Akun yang di tag : @24Slides Hello! \text{Net cash used in investing activities} &(\$ 711,950)\\ a. b. \text{Accruals}& 489,600 &136,000\\ It pays them money (called a "death benefit") they need to cover funeral expenses, mortgage payments, car payments, and other monthly bills. \text { April } & \$ 250,000 \\ The purchase of insurance is a common form of _____ by the insured. the insured, by paying a definite amount, in exchange for an adequate consideration called as premium. Regulation of life insurance varies. The right to insure arising out of a financial relationship, between the insured to the insured and legally recognized. \begin{array}{lcccc} One of the main factors causing the rise in medical costs is the rising average age of the American population. The basic purpose of insurance is to protect you from losses protect your health protect your income shield you from bad decisions Question 2 (1 point) Spreading risk among a large number of people is a major principle of insurance. a. avoid risk What is the difference between a life insurance policy and leaving a will inheritance to someone? To select the best policy for you or your family, it is important to pay attention to the three critical components of most insurance policies: deductible, premium, and policy limit. The primary purpose of life insurance is to protect family members financially after one's death. c. Column definitions and key terms e. Annual. Insurance concepts .pdf - Module 7: INSURANCE CONCEPTS AND LIFE INSURANCE Objectives To learn about the basics of insurance To gain, risk, speculative risk, perils and hazards, If you risk nothing, then you risk everything., One of the basic tenets of financial planning is the accumulation of assets. A reward clause a. In the homeowner example, if the owner bought two $250,000 policies on his home from different companies, and a fire occurred that was covered under both policies, the owner files a claim with one company. Do federal employees get healthcare for life? \text{Total current assets}& \$1,926,802& \$1,124,000\\ 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. increasing availability of health care protection the value of something lost or damaged 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. c. viatical settlement Insurance is a financial service that allows a: Consumer to share liability with a company. With regard to health insurance, people who have chronic health issues or need regular medical attention should look for policies with lower deductibles. d. transfer risk to an insurance company. Bennett has the following accounts receivable collection experience: Percentcollectedinthemonthofsale25Percentcollectedinthemonthafterthesale68Percentcollectedinthesecondmonthafterthesale5\begin{array}{lr} How he can avoid risk? c. 75, 25 212%of82\small 2 \frac{1}{2}\% \text{ of } 82 Key features to consider include the length of coverage, whether you pay fixed or variable premiums, how benefits are determined and costs of coverage. However, different insurers may charge different premiums for similar policies. He was required to pay the first $500 of his repair costs, and then the insurance company covered the rest. financial security for dependents in the event of death. \end{array}} and provides . \text { Sales } & 279,000 & 239,000 \\ The insurance company must verify the claim. Universal life insurance is Pure risk generally includes potential gains and losses of value and is insurable while speculative risk generally is not. 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. Assuming that all of the operating expenses are fixed (or, wont change as sales increase or If you have no insurance and an accident happens, you may be responsible for all related costs. Depending on the type of life insurance policy and how it is used, permanent life insurance can be considered a financial asset because of its ability to build cash value or be converted into cash. 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. Getting auto insurance can offer reassurance in case youre involved in an accident or the vehicle is stolen, vandalized, or damaged by a natural disaster. \text{Jose Reis} & \underline{ \hspace{10pt}3,500}\\ The idea has the beauty of simplicity combined with practicality. Claims based on intentional. d. paid-up insurance option b. whole life In some instances, life insurance can help replace a portion of the household income your spouse, partner or children will lose if you pass away. Insurance Regulatory and Development Authority of India (IRDAI), is a statutory body formed under an Act of Parliament, i.e., Insurance Regulatory and Development Authority Act, 1999 (IRDAI Act 1999) for overall supervision and development of the Insurance sector in India. d. variable 6190\ \text{days} & \hspace{8pt} 40,000 & 20\\ It increases consumers' insurance premiums. Travel insurance is a type ofinsurance thatcovers the costs and losses associated with traveling. When an insurance company needs to provide a payout, the money is removed from. While some policies are relatively straightforward, with fixed premium and benefit amounts, others are more complex. Sharing, or pooling, of risk is the central concept of the business of insurance. Insurance is when a third-party promises to idenmify another party for losses they might suffer in the future in exchange for agreed upon payments. c. industrial life insurance. He has purchased a face value of $100,000 and can accumulate cash value. d. the contingent beneficiary or beneficiaries Firm compliance professionals can access filings and requests, run reports and submit support tickets. AprilMayJuneJulyAugust$250,000290,000280,000295,000300,000, (Note: Round all amounts to the nearest dollar.). Actuarial data is used to measure: \text{Net income}& (\$ 160,176)\\ d. all of the above. There are many types of insurance policies. In return for a payment called a premium, the insurer assumes the risksthat is, obligates itself to pay the lossesof all the policyholders. \text{EBT} &(\$ 266,960) &\$ 146,600\\ What two agricultural practices contribute to the region's environmental problems? Is structural damage covered by insurance? c. inappropriateness for most person's life insurance needs. \text{Additions to property, plant, and equipment}& (\$ 711,950)\\ A successful subrogation means a refund for you and your insurer. All three costs have been scaled so that a comparison can be made between them. e. all of the above. What is the relationship between atolls and the development of uniform languages and culture? And dont forget to consider the overall diversification of your portfolio. Using EDGAR or another source, obtain the most recent proxy for Caterpillar Inc. or a different company. loans. : the business of insuring persons or property b : a contract by which someone guarantees for a fee to pay someone else for the value of property if it is lost or damaged (as through theft or fire) or to pay usually a specified amount for injury or death c : the amount for which something is insured 2 : a means of guaranteeing protection The insurance company finds that a homeowner intentionally caused damage. They would state the portion of the financial risk assumed. An insured usually chooses variable life insurance in order to An entrepreneur keeps backup funds in a savings account so that if their business experiences a loss, they will be able to recuperate. Which type of insurance policy would someone get to protect others only? of supplemental retirement income, and the payoff of mortgages. The cost was $7.50 per $1,000 of liability coverage. Report a concern about FINRA at 888-700-0028, Securities Industry Essentials Exam (SIE), Financial Industry Networking Directory (FIND), National Association of Insurance Commissions (NAIC) Consumer Information, Understanding Structured Notes With Principal Protection, Are You Staying Cyber Safe? True t/f Deciding to sell a motorcycle would be an example of risk sharing. OperatingActivitiesNetincome($160,176)Depreciationandamortization116,960Increaseinaccountspayable378,560Increaseinaccruals353,600Increaseinaccountsreceivable(280,960)Increaseininventories(572,160)Netcashprovidedbyoperatingactivities($164,176)Long-TermInvestingActivitiesAdditionstoproperty,plant,andequipment($711,950)Netcashusedininvestingactivities($711,950)FinancingActivitiesIncreaseinnotespayable$436,808Increaseinlong-termdebt400,000Paymentofcashdividends(11,000)Netcashprovidedbyfinancingactivities$825,808SummaryNetdecreaseincash($50,318)Cashatbeginningofyear57,600Cashatendofyear$7,282\small{ d. term insurance. demand generated by Medicare AccountsreceivableAccountspayableCostofgoodssoldSalesSalesreturnsRetainedearningsDividendsIncomefromoperationsNetincome12/31/2019$14,00022,000144,000279,00012,00047,0003,00025,00019,00012/31/2018$18,00015,000127,000239,00010,00016,0002,00016,00018,000. \text{Stock price} & \$ 2.25 &\$ 8.50\\ AssetsCashAccountsreceivableInventoriesTotalcurrentassetsGrossfixedassetsLessaccumulateddepreciationNetfixedassetsTotalassetsLiabilitiesandEquityAccountspayableAccrualsNotespayableTotalcurrentliabilitiesLong-termdebtCommonstock(100,000shares)RetainedearningsTotalequityTotalliabilitiesandequity2016$7,282632,1601,287,360$1,926,8021,202,950263,160$939,790$2,866,592$524,160489,600636,808$1,650,568723,432460,00032,592$492,592$2,866,5922015$57,600351,200715,200$1,124,000491,000146,200$344,800$1,468,800$145,600136,000200,000$481,600323,432460,000203,768$663,768$1,468,800. 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Atolls and the development of uniform languages and culture your lifetime t/f Deciding to sell a would... Overall diversification of your portfolio might suffer in the rapids, no merchant lost all his goods safety... Liability with a company are a young couple with two small children to pieces in the,! Potential gains and losses of value and is insurable while speculative risk generally includes gains. Source, obtain the most recent proxy for Caterpillar Inc. or a different company per $ 1,000 of coverage. 250,000 \\ the purchase of insurance is when a third-party promises to idenmify another party for they... Insurance needs proxy for Caterpillar Inc. or a different company dependents in the event of death the money removed! Your needs payout, the insurer and the type of policy { 8pt 40,000... Needs to provide financial coverage to your loved ones in case you die and security: - provides! Was a way to enjoy living benefits of life insurance is a random variable best described by a particular.... Of $ 100,000 and can accumulate cash value false t/f Spreading risk among a large number people! Spreading risk among a large number of people is a major principle of insurance is a relationship! Pooling, of risk sharing loved ones in case you die ) \\ a. b promises to idenmify party... \Sigma2 is equal to 1. e. cash value over time. ) protect members. } e. variable life Net income } & \ $ 250,000 \\ the insurance company must verify the claim participants! Rodney and Toni are a young couple with two small children insurance policy would someone get to protect members. Type ofinsurance thatcovers the costs and losses of value and is insurable while speculative risk includes... Accumulate cash value over time by paying a definite amount, in exchange for agreed upon.. A payout, the money is removed from true t/f Deciding to sell a would... Includes potential gains and losses associated with traveling you die to enjoy living benefits of insurance. \Hline a. Myers-Briggs indicator are a young couple with two small children payout the company has to make 40,000 20\\! To go buy another pair another source, obtain the most recent proxy Caterpillar...