GA PROPERTY & CASUALTY (14)

S1: The straight-line method computes the unearned premiums, policy by policy, on a pro-rata basis in respect of the unexpired periods of the respective insurance policies at the end of each period. S2: PFRS 17 exempts an insurer temporarily from some requirements of other PFRS in selecting accounting policies for insurance contract for liability adequacy test. S3: Insurers shall disclose the following information that identifies and explains the amounts in its financial statements arising from insurance contract which includes its accounting policies for insurance contract and related assets, liabilities, income and expenses.   a. Only S3 is incorrectb. All statements are correctc. Only S2 is correctd. Only S3 is correcte. Only S1 is incorrectf. Only S2 is incorrectg. All statements are incorrecth. Only S1 is correct

A homeowner’s policy was cancelled by the Illinois insurance guaranty fund due to insolvency of the insurance company the unearned premium was $625.00. What is the premium refund due the insured for the unexpired policy period? A.$0 B.$525 C.$625 D.$1150

Explain thoroughly why it is the answer.

If an insured fails to pay the premium when due, the insured's heallh policy will remain in force for a specified period of lime under which of lhe following provisions?   A.Grace Period   B.Waiver of Premium   C.Guaranteed Insurability   D.Entire Contract

An insurance company notifies an insured thal $50 of lhe insured's physician's charge is above he usual, customary, and reasonable limits covered by the Major Medical policy. In this situation, the excess amount would be. A.applied to the deductible B.paid at he 80/20 coinsurance rate C.disallowed as a covered charge D.charged back o the physician

An individual accident and health insurance policy must include O A. An automatic reinstatement provision OB. A 10-day right of rescission provision Oc. Only the optional uniform provisions O D. A 60-day grace period

Unearned premium refunds for insurance policies cancelled when an insurance company is covered by the Illinois Insurance guaranty fund is subject to a MAXIMUM premium refund of what amount? A.$ 100.00 B.$ 1000.00 C.$10,000.00 D.$ 100,000.00

The _______________ problem is when customers who are most likely to have a claim against an insurance company are those quickest to apply for an insurance contract.  Group of answer choices a. Capital adequacy b. Default risk c. Adverse selection d. Mismatched maturity

_____ is a contract that involves compensation for specific potential future losses in exchange for periodic payments and that provides for the transfer of the risk of a loss, from one entity to another, in exchange for a premium. a.Spot contract b.Insurance c.Hedging d. Forward contract

Collision and comprehensive: Multiple Choice O O O O O Only pay the insurer Only pay the insured Are compulsory insurance Have no deductibles None of the answer choices are correct.

/oa_school/activity_taking/f3e473999b625855bdf3f6a75f7b8f3a 1.00pt/s The consideration received from a contract with 34.) a customer that does not meet the criteria unde r'Step 1'of PFRS 15 is A recognized as liability. B. recorded through memo entry only. disclosed only, D. b and c

3330 Which of the following actions represents consideration in an insurance contract? a. paying the premium b. filing a claim c. missing the policy d. endorsing a policy

X Co. can deduct life insurance premiums paid providing: O the life insurance policy is required as security on a loan from a financial institution O the company paid the life insurance policy within the year O the premium paid is for insurance on the president of X Co O the premium paid is reasonable in terms of cost

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