Profits of the insurance business are shared with Only with profit policy holders Only life insurance policy holders None of these All policy holders
Q: Which of the following is NOT a business of life/non-life insurance firm? a. Property/casualty…
A: Life insurance: Phrase life insurance, moreover known as pure life insurance, is life protections…
Q: When should a company report the cost of an insurancepolicy as an expense?a. When the company first…
A: Insurance expense refers to the cost of insurance i.e. insurance premium incurred. An insurance…
Q: The Employee Retirement Income Security Act (ERISA) requires that companies fund defined-benefit…
A: The post-retirement benefits will be benefits, other than annuity disseminations, paid to…
Q: A statement of comprehensive income for a company with a defined benefit pension plan does not…
A: The expected return on plan assets is the estimated investment revenue on plan assets invested. This…
Q: 15. Which of the following does not belong to the main products of life insurance? * O A. Endowment…
A: Insurance is a financial mechanism that protects an insured asset from any type of risk. There are…
Q: Statement 1: If an insured outlived his policy and received from the insurance company an amount…
A: Here discuss about the tax burden which are incurred in the insurance policy after the outlive of…
Q: In the world of pension accounting, how does a "asset gain or loss" develop? In the world of pension…
A: The answer
Q: All of the following are reasons for a primary insurer to use reinsurance EXCEPT O to increase the…
A: Reinsurance is nothing but an insurance policy taken by an insurance company from another insurance…
Q: 1. The interest cost component of the net defined benefit cost is determined using a. the settlement…
A: "Since you have asked multiple questions, we would be solving the first question. If you want any…
Q: 4. An insured may not be compensated by the insurance company in an amount exceeding the insured's…
A: The following are some of the principles of insurance, they are Principle of contribution Principle…
Q: ife insurance premiums paid by the company on its officers and employees are considered permanent…
A: Solution: False. Because Life insurance premiums paid by the company on its officers and employees…
Q: The redeemable cash value of a life insurance policy (cash surrender value) where the insured is the…
A: The correct answer is Option (b).
Q: The policy holder who receives the coverage is called ________________. a. Premium b. Face value c.…
A: There are various terminology used in insurance business
Q: Eden Orchards, the insured under a policy with Farm Insurance LLC, files a claim for a covered loss.…
A: Answer
Q: ABC obtains life insurance from Entity BB (an insurance company). Entity A cedes 35% of the…
A: An insurance company can take insurance from another Insurance company by transferring Insurance…
Q: . Which of the following is TRUE regarding a whole life insurance policy that pays a dividend?…
A: Please not th at as per the guidelines, I am required to answer only the first three questions.…
Q: 14. Which of the following is an example for non-trade receivables? a. Dividends receivable. b. All…
A:
Q: Which of the following is the main objective of P2P insurance O a. Less Fraudulent Claims O…
A: The acronym P2P insurance stands for peer to peer insurance. It is formed by a group of people who…
Q: Payments by employers of premiums on life insurance for employees are not taxable benefits. Select…
A: Tax deductible Expenses: Expenses that are deductible for tax purposes include those deemed…
Q: The policy holder who receives the coverage is called O a. Premium O b. Insured O. Face value O d.…
A: Insurance is a term used for the security provided in monetary terms by an insurance company to a…
Q: Which of the following can be used to offset a passive loss? a.Dividend income from stock held as an…
A: Solution- Passive losses are offset by only passive incomes not income from stock,bonds,dividend.…
Q: current liability?
A: Bonus obligations to employees is not current liabilities
Q: Insurance producers who must maintain Premium Fund Trust Accounts (PFTAS) may withdraw funds from…
A: The withdrawal from premium fund trust accounts are permitted for following purposes 1) As payment…
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: Which of the following people represents several insurance companies but owns the policy…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Which of the following would not appear in the asset section of an insurance company's balance…
A: Insurance company: For different forms of insurance coverage, insurance firms analyse the risk and…
Q: What is the main difference between stock life insurance companies and mutual life insurance…
A: Insurance companies are often organized as either a stock life company or a mutual company. In a…
Q: Life insurance premiums paid by the company on its officers and employees are considered permanent…
A: Life insurance is a contract between the two parties like the corporation or the individual and an…
Q: f the employee has the choice as to whether the settlement is in cash or by issuance of equity…
A: A Compound Financial Instrument is an instrument that has the characteristic of both an equity and…
Q: Which type of insurance has no cash value? Term life insurance Universal life insurance Variable…
A: Insurance refers to the concept of creating a policy to safeguard any sort of financial risk by…
Q: Which of the following is true about plan assets? Any excess return on plan assets are earned to…
A: Plan assets refer to the form of assets that are held onto by the owner for long-term employee…
Q: The following are excluded from gross income, except: a. Proceeds of life insurance policy received…
A: Gross Income Gross income refers to the income of an individual which comprises income from wages…
Q: Policy reserves for life insurers are the loss reserves equivalent of P&C insurers. True False
A: The question is related to Reserve in an insurance policy. Policy reserve in life insurance is a…
Q: is taxable? A. Proceeds of life insurance received by heirs B. Excess amount received over…
A: Taxable income: Taxable income is the income which are subject to payment of taxes. Therefore, any…
Q: Profits of the insurance business are shared with
A: Insurance business is a type of business in which company provides assurance to another company or…
Q: life insurance proceeds paid to a beneficiary because of the insured's death is taxable. true or…
A: False
Q: consists of collecting premium from numerous individuals to compensate the few who may suffer…
A: Introduction: Insurance: Insurance is for minimizing the risk. Two parties involved for the contract…
Q: Which of the following is considered or construed as an example of "constructive receipt"?
A: GIVEN the following is considered or construed as an example of "constructive receipt" is
Q: Individual Retirement Accounts (IRAS) are: O A. Self-directed retirement accounts set up by…
A: IRA allows a person to save money for retirement.
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- X Co. can deduct life insurance premiums paid providing: O the life insurance policy is required as security on a loan from a financial institution O the company paid the life insurance policy within the year O the premium paid is for insurance on the president of X Co O the premium paid is reasonable in terms of costThe company selling the insurance policy is the _________________. a. Insurer b. Policy c. Premium d. InsuredA. Which of the following is TRUE regarding a whole life insurance policy that pays a dividend? When the dividend is paid, it is taxed to the policyholder as an ordinary dividend The dividend is automatically credited against future premiums The dividend is paid directly to the beneficiary on the policy When the dividend is paid, it can be used to purchase additional coverage B. Each employee covered under a group life policy MUST be given: An individual certificate of insurance A certificate of insurance for each family member covered An insurance identification card for each family member covered A copy of the group master contract C. Universal life products are flexible premium policies that are: Interest sensitive Guaranteed issue Non-renewable Term only D. Which of the following statements is CORRECT about life insurance proceeds paid to a named beneficiary? They are exempt from claims by the insurance creditors They are subject to excise taxes…
- Is recover compensation within? compensation Income option from insurance operations transfer expenses Option of sources of insurance operationsLife insurance premiums shall be reported as a deductible expense for financial reporting purposes if the company paying it is the beneficiary. Required: True or Falsein insurance terminologies this means that a life insurance policy has been paid and active?
- Which of the following journal entries would be recorded when an entity contributes cash to its defined benefit pension plan? Select one: а. DR Cash; CR Net defined benefit liability O b. DR Pension assets; CR Cash Ос. DR Cash in trust; CR Cash O d. DR Net defined benefit liability; CR CashInsurance policies form the basis of an insurance company’s ________________. a. Financial securities b. Financial liabilities c. Financial assets d. Net policy reservesIdentify which is taxable? A. Proceeds of life insurance received by heirs B. Excess amount received over premiums paid by insured upon surrender of policy C. Compensation for personal injuries of an employee D. Indemnification for moral damages
- 49.The redeemable cash value of a life insurance policy (cash surrender value) where the insured is the president of the Corporation and the beneficiary is the same Corporation, is presented in the Statement of Financial Position as Select one: a.Cash. b. Long-term investment c. Investment in negotiable securities. d. Insurance paid in advanceIn the world of pension accounting, how does a "asset gain or loss" develop? In the world of pension accounting, how does a "liability gain or loss" manifest?It pertains to a risk management technique when acquiring a life insurance. *risk avoidancerisk retentionrisk transferanswer not given