Bennett's anticipated sales for the next few months are as follows: April$250,000May290,000June280,000July295,000August300,000\begin{array}{lr} The basic purpose of insurance is to __________. b. the probate court 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. \end{array}} Discover more about it here. b. savings only. The insured party must experience a covered loss. \text{Net cash provided by financing activities} &\$ 825,808\\ d. Unbundling b. living benefit In this respect, insurers perform a capital formation function similar to that of banks. Viewed as a form of mutual aid, risk-sharing can be seen not only as sound business practice, but as enlightened social behavior rooted in accepted principles of ethics. d. substitute for fixed-dollar insurance protection. Based on this profile, the insurer will establish a monthly premium. What Is Auto Insurance?, Battleface. The purpose of property insurance is to protect policyholders against losses to their 1. In simpler words, one can answer what is an insurance policy as a form of protection from any unexpected loss or damage. \text{Depreciation and amortization} &116,960\\ If you cannot answer a question, read the related section again. \begin{array}{lcccc} \text{Gross fixed assets}& 1,202,950& 491,000\\ liquidity to expand business operations. 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. Under which circumstance would someone need disability insurance? You pay a monthly or yearly fee to the insurance company to insure your life, health, vehicle, property, etc for a certain period. Term is valid for a certain number of years (5,10, 15, 20, etc.) The basic purpose of insurance is to provide: loans. 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? \text{Long-term debt} &723,432 &323,432\\ A policys premium is its price, typically expressed as a monthly cost. In others, it can help cover funeral expenses or other debts. The basic purpose of insurance is to provide? Short-term shocks in the investment markets tax-advantaged investments. 5.) With most insurers, paying life insurance premiums on a(n) ____ basis will allow you to avoid a fee. b. That company will pay out the $250,000 to the owner. We're looking for Junior Quality . Benefits average 19% of yearly wages at ABM and 25% at Zeda. CustomerEvaFryLanceLandauMarcieMoffetJoseReisTotalAmount$6,50011,2003,8003,500$25,000. Three components of any type of insurance are crucial: premium, policy limit, and deductible. 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. \end{array} 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. 12 Likes, 0 Comments - Info Lowongan Kerja (@lokermalangsekitar) on Instagram: "Akun yang di tag : @24Slides Hello! The property damage is caused by a natural disaster, such as a flood. The basic assumptions that the company uses to compute its insurance illustrations include all except It provides financial security, helps to pay off debts, helps to pay living expenses, and helps to pay any medical or final expenses. a. term What type of risk management is this an example of? Lets look at the most important. Universal life insurance is They simply divided their cargoes among several boats. C) Protect you from losses Advertisement Advertisement New questions in Biology. Coinsurance is the claim amount an insured must pay after meeting deductibles and is also the level at which an owner must protect property. c. High returns You can verify FINRA registration by visiting BrokerCheck or contacting your state securities commissioner. 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. 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. The property damage is extensive and requires lengthy and expensive repairs. Want to read all 26 pages. He must pay $75 each month for the plan.Later that month, Nelson caused a car accident when he lost control of his vehicle. There are many types of insurance policies. The best way to handle risk is to Transferring risk means asking an insurance company to take over the risk for a small payment (the premium). The purpose of Subrogation in Insurance is to get back the money or claim paid out for damages that were caused due to a third-party's fault. a. transferred to the life of another person. b. emphasize the savings portion while still having death protection. b. Policy description Thus, the amount of your compensation for a loss is directly related to the amount of loss that you actually suffered. The money your loved ones receive is . Maximums may be set per period (e.g., annual or policy term), per loss or injury, or over the life of the policy, also known as the lifetime maximum. Indemnity is a very important principle of insurance and stems form the value of the insurable interest. d. the chance of loss. a. age. Write out the equation for the target volume (in units) profit equation if the income tax rate is t. Which of the following is the best term or phrase for a characteristic pattern of behavior or a disposition to feel and act? 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. a. a. protection only. all of the above. d. 120 days How would the policy proceeds be distributed? The most common types of personal insurance policies are auto, health, homeowners, and life. d. changed to another type of life insurance. Most individuals in the United States have at least one of these types of insurance, and car insurance is requiredby law. The property damage is caused by a natural disaster, such as a flood. financial security for dependents in the event of death. Many airline passengers purchase a special life insurance policy frequently sold at the airport. \text { Percent collected in the month after the sale } & \quad 68 \\ b. The claims settlement process is one of the most important aspects of an insurance policy, especially if it is a health cover. The insurance company must verify the claim. The insured party must purchase property. The insurance company reviews the claim for its validity and then pays out to the insured or requesting party (on behalf of the insured) once approved. The insurance company finds that a homeowner intentionally caused damage. \begin{array}{lrr} Consider factors such as your risk tolerance, available capital to spend, cost of the policy and the extent to which the people you leave behind when you die rely on you financially. b. protection from creditors and lawsuits. Which of the following companies does not rate the financial strength of life insurance companies? When an insurance company needs to provide a payout, the money is removed from: Maria's family has a health insurance plan. a. human life value It reduces consumers' co-payments. e. c and d, ____ and ____ are both relatively expensive types of decreasing-term life insurance. True Recently your puppy chewed up your shoes and you had to go buy another pair. a. avoid risk Example. The purpose of an insurance contract is to make you "whole" in the event of a loss, not to allow you to make a profit. e. insurance. In such cases, the third-party's insurance should be compensating for the losses and not the other way around! A renewable clause Definition: Insurance refers to a contractual arrangement in which one party, i.e. A claim is the main argument of an essay. This transfer of all the rights, and remedies, from insured to insurer is called subrogation. e. revised as needed. The Third-Party Administrator Desk or TPA desk is a support system that most hospitals have. c. Mortgage life; industrial life 12/31/201912/31/2018Accountsreceivable$14,000$18,000Accountspayable22,00015,000Costofgoodssold144,000127,000Sales279,000239,000Salesreturns12,00010,000Retainedearnings47,00016,000Dividends3,0002,000Incomefromoperations25,00016,000Netincome19,00018,000\begin{array}{lrr} liability Protection. 1- Nucl Technically, the basic function of property/ casualty insurance is the transfer of risk. A person was in a car accident and cannot work for several months. e. none of the above. \text{Total current liabilities} &\$1,650,568& \$ 481,600\\ e. $150,000 to Jack and $25,000 each to Mimi and Ann, Which of the following policy features allow the insured to increase coverage periodically without showing proof of insurability? e. biennial, When a primary beneficiary dies before the insured, proceeds are payable to A claim defines your papers goals, direction, scope, and exigence and is supported by evidence, quotations, argumentation, expert opinion, statistics, and telling details. SalesCostofgoodssoldOtherexpensesTotaloperatingcostsexcludingdepreciationandamortizationDepreciationandamortizationEBITInterestexpenseEBTTaxes(40%)NetincomeEPSDPSBookvaluepershareStockpriceSharesoutstandingTaxrateLeasepaymentsSinkingfundpayments2016$6,034,0005,528,000519,988$6,047,988116,960($130,948)136,012($266,960)(106,784)($160,176)($1.602)$0.110$4.926$2.25100,00040.00%$40,00002015$3,432,0002,864,000358,672$3,222,67218,900$190,42843,828$146,60058,640$87,960$0.880$0.220$6.638$8.50100,00040.00%$40,0000, CommonStockRetainedTotalStockholdersSharesAmountEarningsEquityBalances,December31,2015100,000$460,000$203,768$663,7682016Netincome(160,176)Cashdividends(11,000)Addition(subtraction)toretainedearnings(171,176)Balances,December31,2016100,000$460,000$32,592$492,592\small{ Therefore the answer is. \end{array} \text{Book value per share} & \$ 4.926 & \$ 6.638\\ Some investment professionals sell life insurance alongside other investments such asstocks,bonds,mutual funds,exchange-traded funds,annuitiesand more, and these individuals must be FINRA registered representatives as well as licensed insurance agents. \text { Dividends } & 3,000 & 2,000 \\ ____ is a common provision in many term policies. c. Lifetime income Yet most of us dont stop to think too much about what insurance is or how it works. e. none of the above. There would so much uncertainty, so much exposure to sudden, unexpected possibly catastrophic loss, that it would be difficult for anyone to plan with confidence for the future. a. term. automobile insurance. \text{Other expenses} &519,988& 358,672\\ b. exchanged for cash. Using EDGAR or another source, obtain the most recent proxy for Caterpillar Inc. or a different company. Let's dig into Insurance 202: the basic types of insurance. After this payment, the insurance company covered the rest of the costs. For more on the insurance industrys contributions to society and the economy see A Firm Foundation: How Insurance Supports the Economy. Though the annual premium is higher than a comparable policy with a higher deductible, less expensive access to medical care throughout the year may be worth the tradeoff. Having health insurance provides a safety net in case you end up with a serious injury or illness: All non-grandfathered, non-grandmothered major medical health insurance plans will cap your in-network out-of-pocket costs (a combination of copays, deductibles, and coinsurance) at no more than an amount determined by CMS each year, regardless of . b. policy reinstatement. c. 75, 25 For the most recent year presented in your proxy, what was the total annual compensation received by the chairman and CEO of the company. c. 90 days \text{Sinking fund payments} & 0 & 0\\ 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. e. premium reductions. Our society could hardly function without insurance. Suppose xxx is a random variable best described by a uniform probability distribution with c=20c=20c=20 and d=45d=45d=45. Campo agreed to give up a few of his golfing days and help nurse the company back to health, with Jamison's help. b. debt liquidation. prevention. 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. The insurance company finds that a homeowner intentionally caused damage. Step 1: Gather Information Needed For Your Claim. \text{Net cash used in investing activities} &(\$ 711,950)\\ \text{Depreciation and amortization}& 116,960 &18,900\\ e. group life insurance. c. Convertible Risk is uncertainty regarding economic loss. Sharing, or pooling, of risk is the central concept of the business of insurance. Decreasing term insurance usually has a decreasing face value and \text { Accounts payable } & 22,000 & 15,000 \\ After this payment, the insurance company covered the rest of the costs. Katrina vila Munichiello is an experienced editor, writer, fact-checker, and proofreader with more than fourteen years of experience working with print and online publications. B. Underwriting discussion 6190\ \text{days} & \hspace{8pt} 40,000 & 20\\ The insured party must file a claim. d. savings. e. extended-term option, The _________ option allows a terminally ill insured to receive a percentage of the death benefit for immediate use. If you can not answer a question, read the related section again special... Actually suffered days } & 3,000 & 2,000 \\ ____ is a health cover 1. { days } & \hspace { 8pt } 40,000 & 20\\ the insured party must file a claim accident. State securities commissioner had to go buy another pair the insured party must a. Limit, and car insurance is to protect policyholders against losses to their 1 & 1,202,950 & liquidity... The airport function of property/ casualty insurance is or How it works TPA is. 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