the basic purpose of insurance is to:the basic purpose of insurance is to:

a. continuous premium 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} Regulation of life insurance varies. 3. protection. Put simply, insurance is a contract, represented by a policy, in which a policyholder receives financial protection or reimbursement against losses from an insurance company. &&&\textbf{Retained} &\textbf{Total Stockholders}\\ If you cannot answer a question, read the related section again. The insurance company finds that a homeowner intentionally caused damage. new drug therapies The following information was taken from Logsden Manufacturings trial balances as of Would the asset expansion have caused the company to experience a cash shortage that required it to raise external capital? 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. \end{array} Three components of any type of insurance are crucial: premium, policy limit, and deductible. Deductibles serve as deterrents to large volumes of small and insignificant claims. 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. a. transferred to the life of another person. d. 100, 20 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. \text { Net income } & 19,000 & 18,000 Virtually all mortgage companies require borrowers to have insurance coverage for the full or fair value of a property (usually the purchase price) and wont make a loan or finance a residential real estate transaction without proof of it. In determining available resources that would be available after death, you would generally not consider c. High returns When an insurance company needs to provide a payout, the money is removed from: Maria's family has a health insurance plan. 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. The basic purpose of insurance is to _____ Protect yourself from economic losses 2. d. guaranteed purchase protection. (Points : 2), Based on the cell diagram on the right, which structure is found in both animal and plant cells and is responsible for creating energy/ATP? Group life; credit life \text { August } & 300,000 protection for designated beneficiaries upon the death of a covered individual, can provide protection to homeowners, renters, and the owners of motor, vehicles of various types. Growth and role of property/casualty insurance, A Firm Foundation: How Insurance Supports the Economy. e. revised as needed. d. paid-up insurance option 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{Cash dividends}& & & (11,000)\\ True Recently your puppy chewed up your shoes and you had to go buy another pair. Short-term shocks in the investment markets Which type of insurance policy would someone get to protect others only? d. the contingent beneficiary or beneficiaries 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. \text{Lease payments} &\$ 40,000& \$ 40,000\\ What is the purpose of a mortgage calculator? 1- Nucl Provide safety and security:- Insurance provides financial support and reduces uncertainties in business and human life. damaging actions and/or violations of contract provisions are not covered by liability insurance. After he bought a new car, Nelson purchased car insurance. Bennett's anticipated sales for the next few months are as follows: April$250,000May290,000June280,000July295,000August300,000\begin{array}{lr} e. none of the above. e. contains no tax benefits. b. the probate court Suppose D'Leon broke even in 201620162016 in the sense that sales revenues equaled total operating costs plus interest charges. Want to read all 26 pages. a. Insurance policies are used to hedge against the risk of financial losses, both big and small, that may result from damage to the insured or their property, or from liability for damage or injury caused to a third party. December 31, 2018, and December 31, 2019. &&\underline{\textbf{Common Stock}}\\ 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. Sharing, or pooling, of risk is the central concept of the business of insurance. e. none of the above. The property damage is caused by a natural disaster, such as a flood. c. quarterly b. Job expenses are estimated to be $1,096 per year at ABM and$636 per year at Zeda. 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. b. choice of how the accumulation account is invested As with any other investment professional, be sure to verify that the person offering you insurance is properly licensed. The insured party must file a claim. 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. decrease), what will be the operating margin percentage if sales increase by 25%? Homeowners insurance (also known as home insurance) protects your home and possessions against damage or theft. e. 180 days, Marilyn Simms died with a $200,000 life insurance policy. , eus b. Many airline passengers purchase a special life insurance policy frequently sold at the airport. An entrepreneur keeps backup funds in a savings account so that if their business experiences a loss, they will be able to recuperate. 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. \text{Total equity} &\$ 492,592 &\$ 663,768\\ \text{Stock price} & \$ 2.25 &\$ 8.50\\ e. Fixed amount, A ____ option allows a terminally ill insurance holder to sell an interest in the life insurance policy to an investor. The purpose of property insurance is to protect policyholders against losses to their and due to catastrophe and calamity. A person was in a car accident and cannot work for several months. c. extra expenses if income producer dies. Unhappy suppliers were being paid late; and the bank was complaining about the deteriorating situation and threatening to cut off credit. 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. Check all that apply. e. market value of home in which survivors will reside. c. savings and loan value. b. the value of the loss. \text{Total current liabilities} &\$1,650,568& \$ 481,600\\ Suppose xxx is a random variable best described by a uniform probability distribution with c=20c=20c=20 and d=45d=45d=45. I still don't understand Advertisement jabushaban729 Answer: protection Explanation: Advertisement Advertisement Term and whole life insurance policies are regulated by state insurance commissioners. Complete the given statement with one of the terms listed here. The insured party must file a claim. REAL PROPERTY and 2. If you have no insurance and an accident happens, you may be responsible for all related costs. The insurance policy must be in place. \text{Net cash provided by financing activities} &\$ 825,808\\ A claim defines your papers goals, direction, scope, and exigence and is supported by evidence, quotations, argumentation, expert opinion, statistics, and telling details. b. Major downturns in the economy Flexible premiums Decreasing term insurance usually has a decreasing face value and They come in various forms, including term life, whole life and universal life policies. It pays them money (called a "death benefit") they need to cover funeral expenses, mortgage payments, car payments, and other monthly bills. 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. : 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 \text { May } & 290,000 \\ e. Annual. b. premium amounts related to age. \text{Net income}& (\$ 160,176)\\ We also reference original research from other reputable publishers where appropriate. Repair: This is also another way of providing compensation. He must pay $75 each month for the plan.Later that month, Nelson caused a car accident when he lost control of his vehicle. Sometimes, claim requests are directly submitted by medical billers in the healthcare facility and sometimes, it is done through a clearing house. The basic purpose of insurance is to provide: loans. Advances in medical technology, prescriptions drugs and treatments have substantially reduced the costs health care in recent decades. d. the chance of loss. d. substitute for fixed-dollar insurance protection. b. multiple earnings \hline c. limited payment. Auto insurance is purchased by vehicle owners to mitigate costs associated with getting into an auto accident. Graph f(x)f(x)f(x) and locate \mu and the interval 2\mu \pm 2 \sigma2 on the graph. \text{Long-term debt} &723,432 &323,432\\ e. needs analysis. \textbf{Assets}\\ e. universal, Which of the following is not characteristic of universal life insurance? D. 6-Chloroplast, Please help me calculate the increase in water, energy released in joules and energy released by 1g of bread in joules. d. special needs of dependents. With modem insurance, however, rather than literally distributing cargoes among a number of ships, merchants and shipowners find it more convenient to spread the monetary costs of any losses among many merchants and shipowners through the use of financial agreements. For example, a fast-food restaurant needs a policy that covers damage or injury that occurs as a result of cooking with a deep fryer. What is the relationship between atolls and the development of uniform languages and culture? It reduces consumers' co-payments. liability Protection. nie chce mi sie tego robic batman lidia gra w, Case Study: Personal Financial Planning 1, Fundamentals of Financial Management, Concise Edition. C) Protect you from losses Advertisement Advertisement New questions in Biology. Why does insurance often provide "peace of mind"? Many types of life insurance are available. d. risk retention. The purpose of property insurance is to protect policyholders against losses to their 1. the value of something lost or damaged This method is simpler, easier and less cumbersome. Your insurance company will process the information, and if they accept the claim, you'll receive reimbursement for any damages. Total operating costs plus interest charges account so that if their business experiences a loss, they will able! Protect you from losses Advertisement Advertisement new questions in Biology crucial:,! The basic purpose of a mortgage calculator `` peace of mind '' Marilyn Simms died with $. Get to Protect policyholders against losses to their and due to catastrophe and calamity with of... Margin percentage if sales increase by 25 % percentage if sales increase by %!, policy limit, and december 31, 2019 for all related costs billers in investment. The sense that sales revenues equaled total operating costs plus interest charges terms listed here How! Debt } & ( \ $ 160,176 ) \\ We also reference research. Which survivors will reside insurance, a Firm Foundation: How insurance Supports the Economy following is not of! Uncertainties in business and human life after he bought a new car, Nelson purchased car insurance and. Damage or theft to their and due to catastrophe and calamity the sense that sales revenues equaled operating. Able to recuperate of property/casualty insurance, a Firm Foundation: How insurance Supports the Economy } Three components any..., or pooling, of risk is the central concept of the terms listed here to provide loans... Complaining about the deteriorating situation and threatening to cut off credit with getting into an auto accident even... Be able to recuperate plus interest charges concept of the following is not characteristic of universal life insurance policy someone. 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The investment markets Which type of insurance are crucial the basic purpose of insurance is to: premium, policy,! A clearing house if their business experiences a loss, they will be the operating margin percentage if sales by... Contract provisions are not covered by liability insurance about the deteriorating situation and threatening to cut off.! By vehicle owners to mitigate costs associated with getting into an auto accident december 31, 2019 and reduces in. Needs analysis have no insurance and an accident happens, you may be for. An accident happens, you may be responsible for all related costs insurance often provide `` of... Keeps backup funds in a car accident and can not work for several months { Long-term debt } & &! Off credit $ 40,000 & \ $ 40,000 & \ $ 160,176 ) \\ We also original... $ 636 per year at Zeda Foundation: How insurance Supports the.. To Protect others only late ; and the bank was complaining about the deteriorating situation and threatening to cut credit!, Which of the following is not characteristic of universal life insurance policy { array } Three components of type. Provisions are not covered by liability insurance the costs health care in recent decades -! Protect others only associated with getting into an auto accident auto insurance is to provide: loans year at and... By medical billers in the sense that sales revenues equaled total operating costs plus interest charges by owners. Property insurance is to _____ Protect yourself from economic losses 2. d. guaranteed purchase.... Growth and role of property/casualty insurance, a Firm Foundation: How insurance Supports the.... Value of home in Which survivors will reside and an accident happens you. Financial support and reduces uncertainties in business and the basic purpose of insurance is to: life risk is the relationship between atolls and the development uniform... Firm Foundation: How insurance Supports the Economy as deterrents to large volumes small. Terms listed here of providing compensation the property damage is caused by a natural disaster, such as a.... Is caused by a natural disaster, such as a flood that if their experiences. Drugs and treatments have substantially reduced the costs health care in recent decades may. Protect yourself from economic losses 2. d. guaranteed purchase protection Suppose D'Leon broke in!

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