Ga state license practice exam (7)

N3

Please answer the multiple choice questions below:   1. One possible solution to adverse selection problem is to offer warranty, as it would be
viewed as a signal of quality. 'Signalling' refers to?
 i) Actions ofthe 'Informed party'in the adverse selection problem ii) Actions of the 'less informed partyin the adverse selection problem ii) Actions of an Insurance company to gather information.   
A) i Only B) Both iand i C) Both iand ii D) Both i and ii   2. Which of the following is NOT an example of non-deposit taking financial institution (NDFI)? i) Insurance companies ii) Unit Trusts iii) Building Societies iv) Leasing Companies A) All the above (i, ii, iii and iv) B) Both i and ii C) iii Only D) Both iii and iv   3. Which of the following is not TRUE for financial ratio analysis? Select one: A) The ratios are not exhaustive. B) Comparisons with other firms can only be made with firms of the same size and activity. C) Generally one year’s figures are sufficient. D) Ratios don’t…

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

When compleling an insurance applicalion, a producer should A. complete as much of the application as possible before meeting wilh the applicant to save lime B. request that the applicant review he completed application before signing it C. avoid asking the applicant questions on he application which may be embarrassing D. omit informalion from lhe application which may cause the application to be rejected by the insurance company

S1: One characteristic of an insurance contract is to transfer insignificant risk from the policyholder to the issuer. S2: Under the general model of PFRS 17, a group of insurance contract is initially measured at the fulfillment cash flows and the contractual service margin.A. Both statements are correctB. Only S1 is correctC. Both statements are incorrectD. Only S1 is incorrect

Contract terms: Multiple Choice confer the rights and obligations of the borrower. depend on data in financial statements that are issued before the contract is executed. cannot be designed to eliminate or reduce conflicting incentives. do not use financial accounting numbers to monitor compliance with contract terms.

What are the main parts of an insurance contract and what are they designed to accomplish? How are insurance contracts interpreted by the courts and regulatory bodies? In a dispute over coverage who has the burden of proof? What is subrogation as it relates to insurance? Consider a situation where a professional misrepresents information when acquiring an insurance policy and a third party is injured. What might happen if a claim is made against the insurance company that issued the policy based on fraudulent information? Will the insurance company be liable? Support your position with a specific case.

Which of the following is not an insurance management tool? Group of answer choices deductibles. screening of applicants. limits on insurance. restrictive covenants. signalling.

The restriction that manufacturers should not market a new product that is legally similar to that of another company's product is due to which public policy instrument?  a. Copywrite  b. Minimum standards for product warranties  c. Anti- merger laws  d. Patent laws

S1: It is more advantageous and beneficial to the insured if there are more riders included in theinsurance contract. S2: Life insurance policies, unlike other properties, do not requiresupervision or frequent examination to minimize risk and maximize results.  A. S1 and S2 are trueB. S1 and S2 are falseC. Only S1 is trueD. Only S2 is true

When compleling an insurance application, a producer should   A.complete as much of the applicalion as possible before meeting with he applicant to save time   B.request hat the applicant review the completed application before signing it C.avoid asking the applicant questions on he application which may be embarrassing   D.omit information from he application which may cause the application to be rejected by the insurance company

There are areas of differences between IFRS and GAAP definition recognition measurements allowing alternatives for recognition and measurement lack of requirements presentation of items in financial statements disclosure in the notes of Financial Statements Please explain and analyze the effects of the differences mentioned above on the Financial Statements with regard to the following: Current liabilities Provisions Employee benefits Share-based payment Income Taxes Revenue Financial Instruments Leases For example, you can explain how IFRS and GAAP define "Current liabilities." Then how do they recognize and measure "Current liabilities", do both standards have alternative ways of recognition and measurement? If yes, how does this impact the financial statements? Also, do both standards lack some requirements about "Inventories," and do they differ in presentation and disclosure in the notes of the financial statements?  so the same should apply on the rest i.e. Provisions,…

MATCH WITH THE  BEST ANSWER Liability Insurance Mistakes happen. You, your employees, your equipment or your suppliers could make mistakes that ultimately end up hurting your customers, your employees or other people who are involved with your business. To protect your business from being sued, you should consider these types of insurance to limit your liability: 1.   ____General liability   A.  Provides protection if you are sued by a client for errors, omissions or negligence, when performing professional services. 2.   ____Product liability   B.  Covers injury to clients or staff on your premises. 3.   ____ Professional liability insurance C.  Provides protection in the event that your products are defective or cause serious harm to those using them.

Don’t answer if you not 100% sure , Do not provide AI generated answer It is wrong 36 In accordance with IAS 32 Financial Instruments: Presentation, which of the following describes an equity instrument? • A contractual obligation to deliver cash or another financial asset to another entity • A contract which is evidence of a residual interest in the assets of an entity after deducting all of its liabilities • A contractual right to exchange financial instruments with another entity under potentially favourable conditions • A contract which gives rise to both a financial asset of one entity and a financial liability of another

Can assessment measures be used for predictive purposes? Accounting practitioners have criticized some proposed accounting standards on the grounds that they are difficult to implement because of measurement problems. They, therefore, conclude that the underlying theory is inappropriate. Assuming that the critics are correct about the implementational difficulties, do you agree with their thinking? Discuss. What type of measurement scale (nominal, ordinal, interval, or ratio scale) is being used in the following situations?   Musical scales - interval scales Insurance risk classes for automobile insurance -  Numbering of pages in a book  A grocery scale  A grocery scale deliberately set 10 pounds too high Assignment of students to advisers, based on major

What is the consideration for the insurer in an insurance contract? 1.Premiums Paid 2.Risk Avoidance 3.The literal piece of paper the contract is written on is the consideration 4.An Insurance Contract does not require consideration