Answered: 3.Define the meaning of underwriting.…

Business

Accounting

3.Define the meaning of underwriting. Briefly explain the basic principles of underwriting.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Which of the following are a type of insurance? (select all that apply) □ a. Performance Bond b.…

A: Insurance refers to a contract in the form of a policy between the insurance holders and insurance…

Q: Compare whole-life and term insurance.

A: Insurance is a legal agreement between an insurer (insurance company) and an insured person.

Q: How do insurance company makes money?

A: The insurance company is referred to as that company whose predominant and primary business is…

Q: It pertains to a risk management technique when acquiring a life insurance. * risk avoidance risk…

A: One of the risk management technique is Risk Transfer where one party transfer the risk to another.…

Q: Describe a private insurance. what is it? Discuss the primary strengths and advantages, and…

A: Private Insurance means an insurance plan which is not operated by the government. It comes under…

Q: The formal document that outlines the paym lender and the borrower is: the acceleration clause. O…

A: There is agreement between borrower and lender for payment of loan.

Q: Explain Default Insurance?

A: Insurance is defined as a type of protection is a lawful understanding between two parties for…

Q: Define the term prepaid insurance.

A: Prepaid expenses: Advance payment for future expenses is called as prepaid expenses. These prepaid…

Q: Which of the following is not an insurance management tool? Group of answer choices deductibles.…

A: Insurance management: Insurance Management is the administration of all insurance requirements, both…

Q: The promises of the insurer are found in the insurance policy. True False

A: True. The insurance policy contains the terms, conditions, and promises made by the insurer to the…

Q: What are the main parts of an insurance contract and what are they designed to accomplish? How are…

A: Insurance is a contract between an individual or entity (the insured) and an insurance company (the…

Q: iscuss federal deposit insurance coverage. What is its significance?

A: Federal reserve who is authority over banks and is responsible for taking care of interest of the…

Q: 3. Why is it important for insurance companies to have a large pool of people paying premiums?

Q: what are the pros and cons of being insured by a mutual insurance company vs a stock insurance…

A: There are two types of insurance companies: mutual insurance company and stock insurance companies.…

Q: ce risk management tools?

A: Risk Management Techniques Techniques for coping with dangers are known as risk management…

Q: Who are front-line underwriters? What are premium volume and loss experience with the insurer? What…

A: Underwriters are the person who sell theshares on behalf of the firm. They are very useful for the…

Q: A payment made by the insurance company would be documented where? a.The progress note b.The…

A: Insurance company makes payments to the insured and these payments are documented as below.

Q: What is the consideration for the insurer in an insurance contract?

A: Contract: Contract is an agreement among two parties or more parties which includes enforceable…

Q: The company selling the insurance policy is the _________________. a. Insurer b. Policy c. Premium…

A: Insurance is a means of protection from financial loss.

Q: 20. The written insurance document that may include all clauses, exception and conditions is called…

A: The written insurance document that may include all clauses, exception and conditions is called…

Q: What does the insurer agree to pay for in addition to covering losses in an insurance policy?…

A: Insurance is a contract between the insurer and insured. In this contract, the insurer agrees to…

Q: Please describe in a few sentences the purpose of having an insurance card.

A: An insurance card is a card that is issued to the health insurer for a period of one year or more…

Question

3.Define the meaning of underwriting. Briefly explain the basic principles of underwriting.

4.Explain the reasons why the insurance industry is regulated.

5.Why is an insurable interest required in every insurance contract

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

What is the main difference between stock life insurance companies and mutual life insurance companies?
The Insuring clause in an Accident & Health policy states which of the following information? A. The insured's obligations B. The insurance company's obligations C. The risks excluded from coverage D. The cost of the coverage
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
What is participating in insurer management? What is treaty reinsurance? What is facultative reinsurance?
The Director of Insurance has the power to. make reasonable insurance rules and regulations determine standard insurance rales Veto insurance laws issue insurance policies
True or False : Insurance companies are regulated by the federal government, which helps maintain uniform coverage and premiums
Insurance companies perform functions that are similar to those of investment companies. *True or False
Insurance companies may use all of he following sources to oblain underwriting information about an applicant EXCEPT. A.The Medical Information Bureau (MIB) B.Inspection report companies C.Actuarial raling bureaus D.A Fair Credit report
Which of the following is not a requirement of a "qualified" long-term care insurance policy? The benefit of the policy must offer inflation protection. The contract must offer to cover pre-existing conditions. The contract must be guaranteed renewable. The contract must offer to pay a nonforfeiture benefit.
33.