. Dean advises his Broker that he has completed renovations in his basement. He will be renting the basement to two separate families but does not want his rate to increase.Dean has been a long term client and refers a lot of business to the Brokerage. What should the Broker do?   Inform the client of a likely premium increase and advise the insurance company of the change. Add a note to the client's file and save the changes for a renewal date. Work on quotes with other markets at renewal time. Leave the policy as is since the basement is still vacant.

You have been appointed as a loans officer for the local state bank. One day a person walks intothe bank looking for loan to buy a new car. List items about that individual that you should findout before making a decision whether or not to approve the loan.

Beth and Bob are scheduled to close on the purchase of a new home soon. They were surprised by how much the total closing costs turned out to be, particularly the amount they have to pay to an escrow account. These funds are for A :    the home inspection and estimated repairs.    B :    prepayment of homeowner’s insurance and property taxes.    C :    payment of the attorneys and real estate agents.    D :    payment for the lender’s origination fee.

Steven is a mortgage broker who receives referrals from a real estate agent on a regular basis. The real estate agent has told the Steven that she will be sending him several clients who may have trouble being approved because of their income. Steven is concerned that if he cannot get these clients approved the real estate agent will find another mortgage agent who can. Given this scenario which of the following statements is correct? Select one: a. The mortgage agent should consider each applicant on their own merits and do the ones he can ethically do b. The mortgage agent must not do these deals as they are likely fraudulent c. The mortgage agent must refer this situation to his principal broker since he knows they are fraudulent d. The mortgage agent should tell the real estate agent that he cannot do these deals because he would have to commit fraud

A friend of yours is graduating college next month. He has had a credit card and student loans for the past few years, but he’s never bothered to check his credit report. 1)Why is it vital that your friend reviews his credit report? How soon would you recommend he does so and why? 2) Which sections of information in his credit report should he pay particular attention to given his situation?

You have a friend, Icahn Betitall, who just started a small business. He ispaying a hefty premium for insurance. Icahn’s insurance agent told himthat he is insuring against the risk of loss on fire, theft, liability, and businessinterruption. Icahn also has policies for life, health, and automobiles. Icahnis planning a trip to Las Vegas. He plans to contact his agent and obtain apolicy on the risk of losing his money at the blackjack table.a. What should you tell Icahn about being able to purchase such a policy?b. What are several methods that Icahn can choose to manage his risk exposurein Las Vegas?

Craig decided to start offering assurance-type warranties to increase product sales.  He feels this will help increase sales volume and add positive word of mouth for his business.  He will also offer service-type warranties on several of the high end products that he sells.  After discussing with him the pros and cons, you both agree to record these warranty expenses and liabilities at the end of each quarter. Prepare the journal entries for the following: 1. Craig Design and Landscaping offers 1 year assurance-type warranties on each tree sold over $500.  Craig also sells a 3-year service-type warranty for each tree sold over $500.   2. Craig sold $5,000 worth of service-type warranties and received cash during the 3rd quarter of this year.  These warranties are effective after the one year assurance-type warranty expires.  Record the journal entry for this warranty transaction. 3. You and Craig estimate that 5% of customers will require assurance- type warranty replacement.  Sales…

II. Case Application. Answer the following situations by applying what you have learned from the previous discussions. A customer says, "Insurance is a waste of money. If and when I suffer a financial loss because of an accident or some other event, I can pay for it from my savings account." As an insurance agent your primary goal is to change this kind of mindset, how would you persuade this person to purchase insurance? Design a strategy. At 30, Alyssa Valdez invested P50,000 in a time deposit which earns 3% per annum. With the same interest rate, how much would her earnings be at age 35 if she reinvests the interest with the principal. Show your solution

Micah asks his girlfriend Brandi if he can borrow her car. Brandi agrees to allow Micah to use her car for the day.   Multiple Choice A leasehold has been created. An easement has been created. A fee simple defeasible has been created. A bailment has been created.   If a transaction is unsecured what might a creditor request in exchange for offering a line of credit?   Multiple Choice A recorded security A perfected security interest A legal guaranty A personal guaranty   The court cannot force creditors to agree to a reorganization plan even if it is fair, equitable, and feasible. True False

A) What is the APR for purchases made using this credit card? B) What is the maximum amount that Marcus can put on this credit card? C) Did Marcus pay off the entire balance of his credit card last month? D) Suppose Marcus pays the minimum payment due this month, what will his new balance be, after this payment is processed and assuming he makes no additional purchases?