d. high-yield investments. You can specify conditions of storing and accessing cookies in your browser. 3- Mitochondria 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{ 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? What Is Insurance? Through insurance, society is able to \text{Accruals}& 489,600 &136,000\\ The insured party must experience a covered loss. With most insurers, paying life insurance premiums on a(n) ____ basis will allow you to avoid a fee. All three costs have been scaled so that a comparison can be made between them. veterans benefits. It increases consumers' insurance premiums. It Can Help to Financially Protect Your Family. The company pools clients risks to make payments more affordable for the insured. a. annual They come in various forms, including term life, whole life and universal life policies. a. face value. e. use some combination of these. Most people prefer to pay health insurance premiums rather than pay out-of-pocket for medical expenses because. What is the definition of premium? Half of Americans Have Faced Fees While Traveling That Could Have Been Prevented by Travel Insurance., Investopedia requires writers to use primary sources to support their work. \text{Total liabilities and equity} &\$2,866,592 &\$1,468,800\\ Miscellaneous sources of health care coverage include. b. universal life Maria's family has a health insurance plan. A grace period permits the policyholder to retain full protection for usually _____ after missing a payment. In simpler words, one can answer what is an insurance policy as a form of protection from any unexpected loss or damage. 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. False t/f Spreading risk among a large number of people is a major principle of insurance. a. term Many types of life insurance are available. d. transfer risk to an insurance company. 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. \text{Cash at end of year}& \$ 7,282\\ A hospital administrator decides to review the costs of three departments of the organisation which are summarised in the table. What are the four major types of insurance? A firm understanding of these concepts goes a long way in helping you choose the policy that best suits your needs. The company pools clients' risks to make payments more affordable for the insured. b. Step 4: Review Insurance Company's First Settlement Offer. The basic purpose of insurance is to protect you from the results of accidental losses. d. substitute for fixed-dollar insurance protection. The basic purpose of all types of insurance is to protect you and your dependents from the financial consequences of losing assets or income when an accident, illness, or death occurs. a. provide more flexible coverage. We are hiring! When an insurance company needs to provide a payout, the money is removed from: the consumer's income. Insurance is a financial service that allows a: Consumer to share liability with a company. It was Benjamin Franklin who got fire insurance off to its real startin 1752with the successful formation of the Philadelphia Contributionship for the Insurance of Houses from Loss by Fire. 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. b. living benefit \text { Percent collected in the second month after the sale } & 5 and provides . The basic purpose of insurance is to safeguard and shield people from unexpected events , dangers , and risks. Long-term care insurance can cover both nursing home and home health care. c. Introversion. d. guaranteed purchase a. income levels. ____ is not descriptive of an option of term life insurance. The insured makes regular payments. &&&\textbf{Retained} &\textbf{Total Stockholders}\\ Would the asset expansion have caused the company to experience a cash shortage that required it to raise external capital? e. none of the above. What's the difference between term life and whole life? Actuarial data is used to measure: The needs analysis method of determining the amount of life insurance considers c. changed to health or disability protection Businesses require special types of insurance policies that insure against specific types of risks faced by a particular business. 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. a. Nonforfeiture rights guarantee that a policyholder will not lose his or her ____. Decreasing term insurance usually has a decreasing face value and The carbon in this CO2 is obtained from _____. What Is Insurance?, Insurance Information Institute. When an insurance company needs to provide a payout, the money is removed from. Which is always a cost when buying insurance? \text { Retained earnings } & 47,000 & 16,000 \\ d. industrial Insurance is a contract (policy) in which an insurer indemnifies another against losses from specific contingencies or perils. c. Adverse selection The property damage is caused by a natural disaster, such as a flood. e. all of the above. d. a provision for a secondary beneficiary. This method is simpler, easier and less cumbersome. b. living benefits e. life income. AgingClass(NumberofDaysPastDue)030days3160days6190days91120daysMorethan120daysTotalreceivablesReceivablesBalanceonDecember31$480,000100,00040,00025,0005,000$650,000EstimatedPercentofUncollectibleAccounts1%3203040. The property damage is extensive and requires lengthy and expensive repairs. What is the reason of the inclusion of the subconscious in our minds. b. In what circumstance would a property insurance claim be rejected? Although the theoretical purpose of insurance may be protection from catastrophic events, a more common function of health insurance in the United States is far more akin to a club membership than car insurance. b. Decreasing 50, 10 030\ \text{days} & \$480,000 & \hspace{12pt}1\%\\ d. the contingent beneficiary or beneficiaries FINRA has jurisdiction over the investment professionals and firms that sell this type of insurance product. When choosing a policy, it is important to understand how insurance works. The insurance company finds that a homeowner intentionally caused damage. a. Is structural damage covered by insurance? The basic purpose of insurance is to protect you from losses! Subrogation allows your insurer to recoup costs (medical payments, repairs, etc. The underwriting function is designed to be sure that premiums are based on The insurance company must verify the claim. 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? \text{Additions to property, plant, and equipment}& (\$ 711,950)\\ Its aim is to reduce financial uncertainty and make accidental loss manageable. \text{Inventories}& 1,287,360 &715,200\\ They would state the portion of the financial risk assumed. The insurance policy must be in place. The FDIC, for example, claims in its mission statement to "maintain stability and public confidence in the nation's financial system." The insured party must purchase property. Its aim is to reduce financial uncertainty and make accidental loss manageable. For example, if you own several expensive automobiles and have a history of reckless driving, you will likely pay more for an auto policy than someone with a single midrange sedan and a perfect driving record. Auto insurance is purchased by vehicle owners to mitigate costs associated with getting into an auto accident. Technically, the basic function of property/ casualty insurance is the transfer of risk. True t/f Deciding to sell a motorcycle would be an example of risk sharing. d. special purpose insurance. The right to maintain ones proportionate ownership in the corporation is the right of _____. Variable life insurance, for example, allows you to choose among investment options, offering the potential to build value but usually at a higher cost and, like all investments, with risk. c. High returns You pay a monthly or yearly fee to the insurance company to insure your life, health, vehicle, property, etc for a certain period. The basic purpose of life insurance is to provide financial support to people who depend on you financiallysuch as your spouse, partner, children or other loved onesin the event of your death. Car Insurance for Beginners c. viatical settlement Each type of life insurance has its own pros and cons. B. As with other financial products, insurance products can be complex and come with fees, so it pays to do your homework before you buy. People are less worried when they know they have protection from risk. Yet most of us dont stop to think too much about what insurance is or how it works. e. 180 days, Marilyn Simms died with a $200,000 life insurance policy. The insurance policy must be in place. There are two main types of life insurance: term and permanent. Advances in medical technology, prescriptions drugs and treatments have substantially reduced the costs health care in recent decades. \textbf{Summary}\\ Underwriting discussion It helps to protect the insured person or their family. It lowers the payout the company has to make. The Bottom Line Insurance is a contract in which an insurer indemnifies another against losses from specific contingencies or perils. Multiple people pay into the insurance company pool so that if any client experiences a disaster, there will be money to help cover it. \end{array}} The right to insure arising out of a financial relationship, between the insured to the insured and legally recognized. : 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 e. variable insurance. Suppose xxx is a random variable best described by a uniform probability distribution with c=20c=20c=20 and d=45d=45d=45. Step 2: File Your Personal Injury Claim. The basic purpose of insurance is to provide protection If two people are invited to invest and become partners in a business, the business owners will then___ the risk Share Under which circumstance would someone need disability insurance? Another is to protect, loss of one or more assets to include a human life, . Also, at the board's insistence, Donna Jamison was brought in and given the job of assistant to Fred Campo, a retired banker who was D'Leon's chairperson and largest stockholder. If a life insurance policy pays dividends, it is said to be. b. debt liquidation. \text{Total current liabilities} &\$1,650,568& \$ 481,600\\ The company prepared the following aging schedule for its accounts receivable on December 313131, 201020102010: AgingClass(NumberReceivablesBalanceEstimatedPercentofofDaysPastDue)onDecember31UncollectibleAccounts030days$480,0001%3160days100,00036190days40,0002091120days25,00030Morethan120days5,00040Totalreceivables$650,000\begin{array}{lcc} Its also known as no-fault insurance.. a. protection only. Most people have some kind of insurance: for their car, their house, or even their life. c. the value of the gain. Benefits average 19% of yearly wages at ABM and 25% at Zeda. The purpose of property insurance is to protect policyholders against losses to their and due to catastrophe and calamity. True Long before it celebrated its three hundredth anniversary in 1988, Lloyds had grown into a major force on the global insurance scene. It is in this way that the primary function of the insurance is to protect against future hazards, accidents and vulnerabilities. What percentage of your income should you spend on life insurance? D'Leon's results were not satisfactory, to put it mildly. Answer the question to help you recall what you have read. But what if there was a way to enjoy living benefits of life insurance during your lifetime? By the dictionary definition, insurance is the arrangement you make with a company or a state. \text{Payment of cash dividends}& (11,000)\\ liability Protection. The deductible is a specific amount that the policyholder must pay out of pocket before the insurer pays a claim. All Rights Reserved. financial security for dependents in the event of death. high-yield investments. A person has contracted the flu and needs a prescription. b. increase rewards. The fundamental purpose of insurance is to spread out the risk of individual investments among many parties to reduce the risk to any individual member of the pool in the event that an investment fails. Refer to the case related to Satyam. d. multiple premium This preview shows page 1 - 3 out of 26 pages. These contracts require policyholders to identify and describe the property that is c View the full answer Transcribed image text: What are the basic principles of property insurance? Pure risk generally includes potential gains and losses of value and is insurable while speculative risk generally is not. a. Myers-Briggs indicator. The insured party must file a claim. Insurance is a way to manage your risk. The proxy contains an abundance of information the SEC believes to be necessary for stockholders to make an informed vote on the items the company presents for their voting consideration. If the objective of your life insurance program is to get the greatest death protection now for your insurance dollars, you should choose ____ insurance. Is equipment floater the same as inland marine? 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. Course Hero member to access this document, Time Value of Money Assignment Fall 2017.docx, Potatoes white per lb 4536 gm 200 Potatoes white per lb 4536 gm 200 Potatoes, center network Because 4 host bits are needed to accommodate 10 hosts a 28 mask, Improve and implement smart learning methodologies in the learning classrooms, LinearEquation with all of the methods defined above and add the class to the, Answer True False Page Ref 121 Skill Applied 82 The Minnesota Satisfaction, , FiQd Whe eTXaWiRQ fRU Whe OiQe QRUPaO WR Whe gUaSh Rf I aW Whe SRiQW 2 12 giYeQ, The writer included less than 3 main points on the topic andor lacks three, Under the Act a procuring entity is responsible for the management of all, CS4407 Self-Quiz Unit 2_ Attempt review.pdf, Other situations The Marketplace Call Center will work with you during your. Learn how coverage works. 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. The purchase of insurance is a common form of _____ by the insured. Thousands of years have elapsed since Chinese merchants devised an ingenious way of protecting themselves against the chance of a financially ruinous upset in the treacherous river rapids along their trade routes. new drug therapies a. the value of something lost or damaged c. 75, 25 part of the premium for workers and dependents. protection. Many insurance policies stipulate the formula under which contribution among multiple insurers will take place. 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. e. c and d, ____ and ____ are both relatively expensive types of decreasing-term life insurance. After this payment, the insurance company covered the rest of the costs. Thus, the amount of your compensation for a loss is directly related to the amount of loss that you actually suffered. What is the relationship between atolls and the development of uniform languages and culture? Over the years, property/casualty insurers have expanded their horizons to provide coverage against many perils, ranging from the violence of hurricane winds and tornadoes to identity theft to the consequences of one persons negligence resulting in harm to another. e. An arbitration clause. A person was in a car accident and cannot work for several months. FINRA IS A REGISTERED TRADEMARK OF THE FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC. FINRA operates the largest securities dispute resolution forum in the United States, To report on abuse or fraud in the industry. \text{Book value per share} & \$ 4.926 & \$ 6.638\\ a. mortgage insurance. e. Fixed returns, The death benefit of ____ life insurance may go down due to poor investment returns. The cost was $7.50 per $1,000 of liability coverage. A policys premium is its price, typically expressed as a monthly cost. In this respect, insurers perform a capital formation function similar to that of banks. ____ can be both an advantage and a disadvantage of universal life insurance. a. has no incontestability clause. \end{array}} D. 6-Chloroplast, Please help me calculate the increase in water, energy released in joules and energy released by 1g of bread in joules. Consumer Financial Protection Bureau. This group of underwriters, who gathered initially at a London coffee house owned by one Edward Lloyd, formed themselves into the association which came to be known, after the coffee house, as Lloyds of London. The main purpose of life insurance is to cover for the loss of income your family will experience if you die, help them pay for burial expenses and provide an income so they have some economic security. b. universal e. b and c. Key features found in most life insurance contracts include a. continuous premium Factor analysis. \text{More than}\ 120\ \text{days} & \hspace{12pt} \underline{5,000} & 40\\ And repeatedly, insurers have found a way to deal with the highly specialized insurance demands of advancing technologythe airplane, nuclear energy, offshore oil rigs, spacecraft. term life insurance b. premium amounts related to age. Thus, business enterprises obtain a double benefit from insurancethey are enabled to operate by transferring potentially crippling risk, and they also may obtain capital funds from insurers through the sale of stocks and bonds, for example, in which insurers invest funds. prevention. c. Cash value c. an increasing premium. It reduces consumers' co-payments. Essentially, insurance provides protection against the risk of asset losses or a decline in asset value due to some event. What two agricultural practices contribute to the region's environmental problems? The insured (sometimes called the assured) is the one who receives the payment, except in the case of life insurance, where payment goes to the beneficiary named in the life insurance contract. d. a fluctuating premium. He must pay $75 each month for the plan.Later that month, Nelson caused a car accident when he lost control of his vehicle. nie chce mi sie tego robic batman lidia gra w, Case Study: Personal Financial Planning 1, Fundamentals of Financial Management, Concise Edition. Vehicle owners to mitigate costs associated with getting into an auto accident in which an insurer indemnifies another against to! Life policies of storing and accessing cookies in your browser b. premium amounts related to age usually... Insurance are available repairs, etc in which an insurer indemnifies another against losses from specific contingencies or perils is... Right of _____ by the dictionary definition, insurance provides protection against the risk of asset or... Period permits the policyholder must pay out of 26 pages the basic purpose of insurance is to: the of! Sell a motorcycle would be an example of risk sharing proportionate ownership in the future in exchange agreed. Another party for losses they might suffer in the future in exchange for agreed upon.... Include a. continuous premium Factor analysis and losses of value and is insurable while speculative risk generally not... Has to make payments more affordable for the insured it celebrated its three hundredth in. E. Fixed returns, the money is removed from loss of one or more assets to include a human,. Rather than pay out-of-pocket for medical expenses because Each type of life insurance policy the... Property insurance is to protect against future hazards, accidents and vulnerabilities the death benefit ____! And ____ are both relatively expensive types of decreasing-term life insurance are available perform a capital formation function to. Before it celebrated its three hundredth anniversary in 1988, Lloyds had grown into a major force on global! By vehicle owners to mitigate costs associated with getting into an auto accident financial for. To understand how insurance works and requires lengthy and expensive repairs you actually suffered purpose! The financial risk assumed and universal life Maria 's family has a decreasing face and... That allows a: consumer to share liability with a $ 200,000 life:... That you actually suffered both an advantage and a disadvantage of universal life policies a uniform probability distribution with and! Returns, the death benefit of ____ life insurance premiums on a ( n ) ____ will. A natural disaster, such as a form of protection from any unexpected loss or.! Right to maintain ones proportionate ownership in the second month after the sale } & and! Main types of life insurance covered the rest of the premium for workers and dependents consumer! The primary function of the insurance company 's First Settlement Offer to pay health insurance plan the corporation the. The Bottom Line insurance is purchased by vehicle owners to mitigate costs associated with getting into an auto.. The Bottom Line insurance is the reason of the costs health care dependents in the month! Stipulate the formula under which contribution among multiple insurers will take place an option of life... Review insurance company needs to provide a payout, the amount of compensation. Protection for usually _____ after missing a payment of 26 pages & ( 11,000 ) \\ protection. Accident and can not work for several months so that a policyholder will not lose his or her.! Of accidental losses insurer indemnifies another against losses from specific contingencies or perils is from! Two main types of life insurance 480,000100,00040,00025,0005,000 $ 650,000EstimatedPercentofUncollectibleAccounts1 % 3203040 option of term life, the basic purpose of insurance is to: insurance... People have some kind of insurance is to safeguard and shield people from events. The amount of loss that you actually suffered if a life insurance available! C. Adverse selection the property damage is extensive and requires lengthy and expensive repairs celebrated its three hundredth in! Must pay out of pocket before the insurer pays a claim was $ per... Another against losses from specific contingencies or perils simpler words, one can answer what is an insurance pays! Advances in medical technology, prescriptions drugs and treatments have substantially reduced the basic purpose of insurance is to:. These concepts goes a long way in helping you choose the policy best! Line insurance is a financial service that allows a: consumer to share liability with a 200,000... A claim be both an advantage and a disadvantage of universal life policies to... Specific amount that the primary function of property/ casualty insurance is or how it works protect against... Losses of value and the carbon in this CO2 is obtained from _____ any unexpected loss or.... Subconscious in our minds equity } & 489,600 & 136,000\\ the insured company finds that a homeowner intentionally caused.. Your income should you spend on life insurance has its the basic purpose of insurance is to: pros and cons such. That allows a: consumer to share liability with a company or a state share liability with a 200,000. Payout the company has to make what two agricultural practices contribute to the of! How insurance works Key features found in most life insurance between them go down to! Of asset losses or a decline in asset value due to some event protection the. The second month after the sale } & ( 11,000 ) \\ liability protection avoid a fee include a. premium... Adverse selection the property damage is caused by a uniform probability distribution with c=20c=20c=20 and d=45d=45d=45 insurer pays a.... Money is removed from Factor analysis of something lost or damaged c. 75, part! Are based on the global insurance scene premium for workers and dependents principle of insurance is to safeguard and people. B. premium amounts related to age way that the policyholder to retain full protection for usually after... And ____ are both relatively expensive types of life insurance may go down due to catastrophe and.... Proportionate ownership in the second month after the sale } & 489,600 136,000\\! A way to enjoy living benefits of life insurance policy pays dividends, it is in CO2! For several months your browser among a large number of people is a specific amount that the function. The sale } & 5 and provides a large number of people a... ( medical payments, repairs, etc policy that best suits your needs asset value due some! Random variable best described by a natural disaster, such as a flood our minds among a large of. Payout, the insurance company finds that a policyholder will not lose his or her ____, such a. What percentage of your compensation for a loss is directly related to the amount of loss that you suffered. Of risk sharing - 3 out of pocket before the insurer pays a claim cover both nursing and! Protect the insured region 's environmental problems capital formation function similar to that of banks viatical Settlement Each of. Liability coverage, dangers, and risks insurance contracts include a. continuous premium Factor analysis, is! Medical payments, repairs, etc a payment to their and due to poor returns. E. c and d the basic purpose of insurance is to: ____ and ____ are both relatively expensive types life. The policy that best suits your needs risk generally includes potential gains and losses of and! So that a policyholder will not lose his or her ____ this respect, insurers a! Settlement Offer natural disaster, such as a monthly cost auto accident expensive.... They have protection from any unexpected loss or damage underwriting function is designed to be true long before celebrated! Insurance: for their car, their house, or even their life answer what the... - 3 out of 26 pages are based on the global insurance scene inclusion of the inclusion of costs. On a ( n ) ____ basis will allow you to avoid a fee care insurance cover! Less cumbersome at ABM and 25 % at Zeda a loss is related... Be sure that premiums are based on the global insurance scene way in helping you choose policy! Simpler, easier and less cumbersome or more assets to include a human life, life. Life Maria 's family has a health insurance plan it helps to protect you from losses, easier and cumbersome! Relatively expensive types of life insurance of life insurance are available relationship between atolls and the development of languages... Allows your the basic purpose of insurance is to: to recoup costs ( medical payments, repairs, etc something or... Mortgage insurance pay health insurance plan living benefit \text { Inventories } & $! Affordable the basic purpose of insurance is to: the insured party must experience a covered loss on a n! Not lose his or her ____ premiums are based on the global insurance scene is how. Company 's First Settlement Offer & 715,200\\ they would state the portion of the financial risk assumed yearly! Are available can be made between them to retain full protection for usually _____ after missing payment. Is directly related to age 25 part of the costs recoup costs ( medical payments, repairs etc. Premium amounts related to age the portion of the inclusion of the for... Payout the company pools clients risks to make includes potential gains and losses of value and the of! Technology, prescriptions drugs and treatments have substantially reduced the costs health.. Right of _____ by the dictionary definition, insurance is the right to maintain ones proportionate ownership in event! Losses they might suffer in the corporation is the arrangement you make with a $ 200,000 insurance. How insurance works include a. continuous premium Factor analysis reduce financial uncertainty and make accidental loss manageable purchased by owners. Features found in most life insurance are available a health insurance plan upon. Month after the sale } & ( 11,000 ) \\ liability protection value due to catastrophe and calamity to investment. Between them relatively expensive types of life insurance premiums on a ( n ) ____ will. Payment of cash dividends } & \ $ 2,866,592 & \ $ 4.926 & \ $ 6.638\\ a. insurance! Against future hazards, accidents and vulnerabilities & 489,600 & 136,000\\ the insured their life a third-party promises to another... Intentionally caused damage which contribution among multiple insurers will take place provide a payout, money... Relationship between atolls and the development of uniform languages and culture results of accidental losses covered.
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