On February 5, Ayla started working at Larson Group Inc. as an administrative assistant. Larson Group offers all employees a group health, dental and life insurance plan that commences after a 3-month waiting period. On April 7, Ayla felt ill and drove herself to the hospital. The doctor diagnosed two clogged arteries and performed an emergency surgery. Ayla was unable to work for 2 months, then died of complications on June 9. Will the group insurance plan pay the death benefit? Select one correct answer from the list 1. Yes, because she died of natural causes. 2. Yes, because her group life coverage started on May 5. 3. No, because Ayla was not actively at work when the coverage started. 4. No, because Ayla did not provide the insurer with any proof of insurability. ΟΟΟΟ Leif owns a $200,000 participating whole life insurance policy with a premium reduction option. The annual premiums are $1,350. This year is the first year that the dividend earned is greater than his annual premium. What will the insurance company do with the excess dividend? Select one correct answer from the list 1. The insurer will add the excess dividend to its shareholders' earnings. 2 The insurer will issue a payment and reimburse the excess to Leif. 3. The insurer will pay out or allocate the excess according to the dividend option chosen by Leif. The insurer will allocate the excess amount to one of the other dividend options chosen by its shareholders. ОО 00
On February 5, Ayla started working at Larson Group Inc. as an administrative assistant. Larson Group offers all employees a group health, dental and life insurance plan that commences after a 3-month waiting period. On April 7, Ayla felt ill and drove herself to the hospital. The doctor diagnosed two clogged arteries and performed an emergency surgery. Ayla was unable to work for 2 months, then died of complications on June 9. Will the group insurance plan pay the death benefit? Select one correct answer from the list 1. Yes, because she died of natural causes. 2. Yes, because her group life coverage started on May 5. 3. No, because Ayla was not actively at work when the coverage started. 4. No, because Ayla did not provide the insurer with any proof of insurability. ΟΟΟΟ Leif owns a $200,000 participating whole life insurance policy with a premium reduction option. The annual premiums are $1,350. This year is the first year that the dividend earned is greater than his annual premium. What will the insurance company do with the excess dividend? Select one correct answer from the list 1. The insurer will add the excess dividend to its shareholders' earnings. 2 The insurer will issue a payment and reimburse the excess to Leif. 3. The insurer will pay out or allocate the excess according to the dividend option chosen by Leif. The insurer will allocate the excess amount to one of the other dividend options chosen by its shareholders. ОО 00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:On February 5, Ayla started working at Larson Group Inc. as an administrative assistant. Larson Group
offers all employees a group health, dental and life insurance plan that commences after a 3-month
waiting period.
On April 7, Ayla felt ill and drove herself to the hospital. The doctor diagnosed two clogged arteries and
performed an emergency surgery. Ayla was unable to work for 2 months, then died of complications on
June 9. Will the group insurance plan pay the death benefit?
Select one correct answer from the list
1. Yes, because she died of natural causes.
2. Yes, because her group life coverage started on May 5.
3. No, because Ayla was not actively at work when the coverage started.
4. No, because Ayla did not provide the insurer with any proof of insurability.
ΟΟΟΟ
Transcribed Image Text:Leif owns a $200,000 participating whole life insurance policy with a premium reduction option. The
annual premiums are $1,350. This year is the first year that the dividend earned is greater than his
annual premium. What will the insurance company do with the excess dividend?
Select one correct answer from the list
1. The insurer will add the excess dividend to its shareholders' earnings.
2 The insurer will issue a payment and reimburse the excess to Leif.
3.
The insurer will pay out or allocate the excess according to the dividend option chosen by Leif.
The insurer will allocate the excess amount to one of the other dividend options chosen by its shareholders.
ОО
00
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