After a policy had been in effect for 18 months, a claim was submitted. The insurerdetermined that the insured had made a material misstatement on the applicationfor coverage. The insurer would probably do which of the following?A. Adjust any future premiumsB. Pay the claimC. Cancel the policyD. Contest the claim

The correct option is: D. Contest the claim. Explanation: Under most insurance policies, there will…

Answered: After a policy had been in effect for…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 12DQ

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Similar questions

If a prospect does NOT submit the initial premium with an application, the producer should A.refuse tratinghe application B.submit the application to the insurance company and advance the premium for he prospect from the agency account C.submit the applicalion to the insurance company without the premium D.give lhe applicant a conditional receipt and send the application to the insurance company wilhout the premium
I need answer correct
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
Under a property policy all of the following statements are correct about a mortgagee except the mortgagee is entitled to an additional 10 days written notice of policy cancellation The mortgagee is entitled to an additional 60 days to file a claim if the insurered has not done so. The mortgagee is considered an additional interest under the policy declaration The mortgagee is entitled to coverage in excess of policy limits
For which of the following would year-end accrual of a current liability be optional? a. Current portion of a long-term lease obligation that comes due next year b. A declared property dividend c. Sick pay benefits that accumulate but do not vest d. Short-term debt that is being refinanced on a long-term basis
Which of the following is correct about the effect of a deductible with respect to the price of an insurance policy? O A policy with a deductible will raise the premium. This will make the overall cost of insurance higher for policyholders who do not have a claim, but lower for those with high claims O A policy with a deductible will lower the premium. This will make the overall cost of insurance higher for policyholders who do not have a claim, but lower for those with high claims O A policy with a deductible will raise the premium. This will make the overall cost of insurance lower for policyholders who do not have a claim, but higher for those with high claims O A policy with a deductible will lower the premium. This will make the overal cost of insurance lower for policyholders who do not have a claim, but higher for those with high claims
S1: PFRS 17 allows and insurer to change its accounting policies for insurance contract only if, as a result of its financial statements present information that is more relevant. S2: Outward Reinsurance is where the premium and commission shall be accounted for in the different accounting period original policy to which the reinsurance relates. S3: Premiurn deficiency arises when the unearned premium reserve is less than the estimated claims related 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
Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org).Required:Determine the specific citation for accounting for each of the following items:1. If it is only reasonably possible that a contingent loss will occur, the contingent loss should be disclosed.2. Criteria allowing short-term liabilities expected to be refinanced to be classified as long-term liabilities.3. Accounting for the revenue from separately priced extended warranty contracts.4. The criteria to determine if an employer must accrue a liability for vacation pay
Insurance producers who must maintain Premium Fund Trust Accounts (PFTAS) may withdraw funds from the account to pay all of the following expenses EXCEPT: premiums due insurers A. B. C. D. claim payments due insureds return premiums due insureds commissions due other licensees P
Prior to 2019, lessees did not include the right-of-use asset and the lease liability for operating leases on their balance sheets. Both FASB and IASB wrote new standards to require that lessees nearly always report an asset and liability on their balance sheets when they engage in a lease transaction. This accounting results in which of the following? Group of answer choices a more reliable estimation of the lease's value a better determination on whether the lessor held the risks and rewards of the leased asset's ownership a more faithful representation of the rights and obligations arising from leases All of the above
A contingent liability is an obligation that depends on the occurrence of a future event and that should be recorded in the accounts: Group of answer choices If the amount is reasonably estimated If the related future event will probably occur The related future event will probably occur and the amount is reasonably estimated. If the amount is due in cash within one year
Define the following: Condition Civil loss Reciprocal obligations Pure obligation Potestative condition Problems Explain or state briefly the rule or reason for your answer. 1. D (debtor) borrowed P20,000 from C (creditor) payable on or before August 30. Before the arrival of the due date, C agreed to the promise of B to pay C if B wants. Can C insist that B pay not later than August 30? 2. Suppose in the same problem, D obliges himself to pay C P10,000 after C has paid his obligation to T. Is the obligation valid? 3. S (seller) agreed to sell to B (buyer) a specific car for P200,000, delivery of the car and the payment of the price to be made on June 15. Suppose S delivered the car on June 15 but B failed to pay the price, what are the remedies of S? 4. S sold a parcel of land to B for P240,000 payable in installments of P20,000 a year. The land was delivered to B who obtained ownership thereof. After B had paid P200,000, he could no longer continuing paying in view of…

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