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 Apolicy with a deductible will lower the premium. This will make the overal cost of insurance higher for policyholders who do not have a claim, but lower for those with high daims 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 deductitle 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

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 Apolicy with a deductible will lower the premium. This will make the overal cost of insurance higher for policyholders who do not have a claim, but lower for those with high daims 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 deductitle 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

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Gains and losses can occur with pension plans when: A) Either the PBO or the return on plan assets turns out to be different than expected. B) Either the ABO or the return on plan assets turns out to be different than expected. C) Either the PBO, the ABO, or the return on plan assets turns out to be different than expected. D) Either the PBO or the ABO turns out to be different than expected.
S1: One characteristic of an insurance contract is to transfer insignificant risk from the policyholder to the issuer. S2: Under the general model of PFRS 17, a group of insurance contract is initially measured at the fulfillment cash flows and the contractual service margin.A. Both statements are correctB. Only S1 is correctC. Both statements are incorrectD. Only S1 is incorrect
Which type of insurance has no cash value? Term life insurance Universal life insurance Variable life insurance O All of the above have cash values
Which is Idemenity Plan and which is Managed Care Plan? Insureds create contract with an insurer who does not provide health care services The higher the deductible, the lower the premium Insured receive health care services from a designated group of providers May not even involve an insurance company No annual deduction is incurred, but a small co-payment may be required I most value the freedom of choice and am willing to pay for it. Cost is my most important consideration. I’d rather have the flexibility of either having the insurance company reimburse me or directly paying the health care provider.
If there is a small probability of a risk occurring, a business may choose to assume the risk rather than buy insurance for the risk. true or false
2. Which of the following risks are insurable? For risks which are not insurable, explain why they are not insurable.(i) The risk that a $10 Christmas decoration will be broken.(ii) The risk that a borrower will need to pay interest on a debt.(iii) The risk that the interest rate on a debt will increase.(iv) The risk that an insurance company will have to pay too many losses.(v) The risk that an individual is late for an important meeting.(vi) The risk that a pregnancy will result in multiple births (twins, triplets,etc.) incurring unplanned expenses.(vii) The risk of an individual being killed by a malfunctioning self-flyingaeroplane within the next 30 years.(viii) The risk that a dress will not be fashionable in two month’s time.
Disadvantages of Whole Life insurance include... Group of answer choices -More expensive than Term -All of the above -Lack of control over your investments -None of the above -Your cash value is lost if you cancel
An important distinction in health insurance is between the list price (PL) and out-of-pocket price (PP) of a medical good or service. The list price is the official price that the provider charges the insurance company, while the out-of-pocket price is the price that the insurance customer faces. Sometimes, the out-of-pocket price depends on the list price. Now assume the consumer is part of a partial insurance plan with a coinsurance provision. Her insurance pays 50% of all medical expenses. Consider again the relationship between PL and PP and plot a coinsurance plan demand curve in PL - Q space. Label this curve D3. Finally, assume the consumer is part of a partial insurance plan with a copayment provision. Her insurance pays all expenses above and beyond her copayment of $25 for each unit of Q. Consider again the relationship between PL and PP and plot a copayment-plan demand curve in PL - Q space. Label this curve D4.
what are the advantages of high deductible on home insurance
True or False: When you prepay your insurance, your net worth decreases. Select one: True O False h
k) define a protective put. l) demonstrate an understanding of the position of buying a protective put by identifying the breakeven stock price, the maximum profit, and the maximum loss. m) discuss the similarities between a protective put and an insurance policy. n) discuss the similarities between the exercise price in a protective put and the deductible in an insurance policy. o) demonstrate an understanding of the constructions of a synthetic put by identifying the breakeven stock price, the maximum profit, and the maximum loss.
Describe the major elements of the affordable care act. What problem is the legislation trying to address? How much is it expected to cost? How will the extra spending be financed? What are the major objections to the legislation?

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