The principles of insurable interest, subrogation, actual cash value, and pro rata sharing all stem from the broader principle of indemnity. Explain what is meant by the principle of indemnity, and indicate specifically in what way each of the four principles mentioned above helps enforce the principle of indemnity.

The principles of insurable interest, subrogation, actual cash value, and pro rata sharing all stem from the broader principle of indemnity. Explain what is meant by the principle of indemnity, and indicate specifically in what way each of the four principles mentioned above helps enforce the principle of indemnity.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter11: Investor Losses

Section: Chapter Questions

Problem 26DQ

See similar textbooks

Similar questions

Is the following statement is true or false? Amortization is not a payment process. True O False
The coinsurance penalty promotes which of the following? O Application of the deductible All of the above. Equitable rates for all policyholders. O Equitable distribution of loss payments for all policyholders.
What is law of Indemnity? Explain the rights and duties of indemnifier and indemnity holder with appropriate examples.
15. Related to insurance, what is a deductible and how does it work?
The measurment princple requires that..?
what are deemed cash contributions?
Que 2 Evaluate in terms of the framework, why it is appropriate to capitalize borrowing costs under certain circumstances?
19. If an individual renders services to a creditor who in consideration thereof cancels the debt, the cancellation of indebtedness may,amount to a: a. Gift С. Donation inter vivos b. Capital contribution d. Payment of income CS Scanned with CamScanner
Essay: (Answer must be technical, with examples if necessary.) When initially recognizing the cash surrender value, what is the reason behind the allocation between deducting from insurance expense and crediting to retained earnings? What application of matching principle concept is used?
These are those which do not give rise to a right to receive (or an obligation to deliver) a fixed or determinable amount of money. Non-financial items Non-monetary items Monetary items Financial items
Statement I. In the case of premiums as a component of transaction price, cash received from customer during the redemption of premiums shall be accounted as deduction from the cost of premiums.Statement II. The transaction price for the sale of the product with premium is recorded as a liability for the performance obligation that will be settled by the transfer of the promised premium. A. Both statements are true. B. Both statements are false. C. statement I is true; Statement II is false. D. Statement I is false; Statement II is true.
Under PFRS 15, what is the measurement basis of revenue from contracts with customers? Select the correct letter: A. Revocable amount of the consideration received or receivable B. Book value of the consideration received or receivable C. Fair value of the consideration received or receivable D. Historical cost of the consideration received or receivable