Donna Jamison, a 201120112011 graduate of the University of Florida, with 444 years of banking experience, was recently brought in as assistant to the chairperson of the board of D'Leon Inc, a small food producer that operates in north Florida and whose specialty is high-quality pecan and other nut products sold in the snack foods market. \text{EBT} &(\$ 266,960) &\$ 146,600\\ c. Adverse selection c. lessen the savings feature of life insurance. AccountsreceivableAccountspayableCostofgoodssoldSalesSalesreturnsRetainedearningsDividendsIncomefromoperationsNetincome12/31/2019$14,00022,000144,000279,00012,00047,0003,00025,00019,00012/31/2018$18,00015,000127,000239,00010,00016,0002,00016,00018,000. a. lump sum. e. Shifts in the macro-social structure of the population. Credit life; mortgage life medical costs can be extremely high, and insurance is more affordable than paying out-of-pocket for a hospital stay. Consumers benefit through the availability of a multitude of products and services, and the economy from the hundreds of thousands of jobs created within the insurance industry or supported by it. e. biennial, When a primary beneficiary dies before the insured, proceeds are payable to Here are some of the most common types of life insurance: Another type of insurance islong-term care insurance, which is designed to help manage health care expenses as you age and tends to cover what Medicare and most conventional health insurance policies don't: long-term custodial care expenses. d. requires a savings function. They would state the portion of the financial risk assumed. b. c. change of policy. Lump sum \text{Accounts payable} &\$ 524,160 &\$ 145,600\\ Want to read all 26 pages. A person's house was seriously damaged during a natural disaster. d. all of the above. a. term e. 180 days, Marilyn Simms died with a $200,000 life insurance policy. a. age. Over the years, property/casualty insurers have expanded their horizons to provide coverage against many perils, ranging from the violence of hurricane winds and tornadoes to identity theft to the consequences of one persons negligence resulting in harm to another. Life insurance policies with small face amounts where the premium may be collected weekly by agents is d. A limited clause d. universal. If you have no insurance and an accident happens, you may be responsible for all related costs. The money your loved ones receive is . Which job would give Jorge more net job benefits for a year? \begin{array}{lrr} Answer the question to help you recall what you have read. \text { Sales } & 279,000 & 239,000 \\ The principle of indemnity ensures that an insurance contract protects you from and compensates you for any damage, loss, or injury. \text{Net decrease in cash} &(\$ 50,318)\\ The settlement option chosen by most beneficiaries is Underwriting helps protect life insurance companies from which of the following: The purchase of insurance is a common form of which risk management technique: From the standpoint of the person buying insurance, the central purpose of insurance should be: Which of the following forms of life insurance requires the lowest premium per dollar of initial death benefits? Life, health, homeowners, and auto are the most common forms of insurance. Therefore the answer is. liability Protection. If the objective of your life insurance program is to get the greatest death protection now for your insurance dollars, you should choose ____ insurance. The cost was $7.50 per $1,000 of liability coverage. He has purchased a face value of $100,000 and can accumulate cash value. Check all that apply. a. the state Group life; credit life The insured party must experience a covered loss. The basic purpose of insurance is to protect you from losses! A successful subrogation means a refund for you and your insurer. C. 5- Central vacuole Whole life insurance is permanent life insurance that pays a benefit upon the death of the insured and is characterized by level premiums and a savings component. Life, health, homeowners, and auto are the most common forms of insurance. Which is always a cost when buying insurance? It's similar for a business. c. health status. Can I stay on my parents insurance if I file taxes independently? As an additional benefit of to society, insurers themselves, the trustees of policyholder and stockholder funds, become major investors and suppliers of capital to the economy. automobile insurance. Advances in medical technology, prescriptions drugs and treatments have substantially reduced the costs health care in recent decades. e. revised as needed. c. fixed amount. Life insurance needs change dramatically over one's lifetime. Rodney and Toni are a young couple with two small children. \text{Cash dividends}& & & (11,000)\\ Though the annual premium is higher than a comparable policy with a higher deductible, less expensive access to medical care throughout the year may be worth the tradeoff. \text{Net cash used in investing activities} &(\$ 711,950)\\ term life insurance \hline Jorge Conseco can work for ABM, Inc. for $437 per week or Zeda, Inc. for$1,408 per month. Contribution the principle holding that two or more insurers each liable for a covered loss should participate in the payment of that loss. Under which circumstance would someone need disability insurance? A policys premium is its price, typically expressed as a monthly cost. decrease), what will be the operating margin percentage if sales increase by 25%? There are four types of insurance that most financial experts recommend everybody have: life, health, auto, and long-term disability. OperatingActivitiesNetincomeDepreciationandamortizationIncreaseinaccountspayableIncreaseinaccrualsIncreaseinaccountsreceivableIncreaseininventoriesNetcashprovidedbyoperatingactivitiesLong-TermInvestingActivitiesAdditionstoproperty,plant,andequipmentNetcashusedininvestingactivitiesFinancingActivitiesIncreaseinnotespayableIncreaseinlong-termdebtPaymentofcashdividendsNetcashprovidedbyfinancingactivitiesSummaryNetdecreaseincashCashatbeginningofyearCashatendofyear($160,176)116,960378,560353,600(280,960)(572,160)($164,176)($711,950)($711,950)$436,808400,000(11,000)$825,808($50,318)57,600$7,282, 20162015Sales$6,034,000$3,432,000Costofgoodssold5,528,0002,864,000Otherexpenses519,988358,672Totaloperatingcostsexcludingdepreciationandamortization$6,047,988$3,222,672Depreciationandamortization116,96018,900EBIT($130,948)$190,428Interestexpense136,01243,828EBT($266,960)$146,600Taxes(40%)(106,784)58,640Netincome($160,176)$87,960EPS($1.602)$0.880DPS$0.110$0.220Bookvaluepershare$4.926$6.638Stockprice$2.25$8.50Sharesoutstanding100,000100,000Taxrate40.00%40.00%Leasepayments$40,000$40,000Sinkingfundpayments00\small{ Prepare a schedule of cash receipts for July and August. The basic purpose of insurance is to protect you from losses! Which of the following companies does not rate the financial strength of life insurance companies? 1. loans. The insured party must file a claim. He must pay $75 each month for the plan.Later that month, Nelson caused a car accident when he lost control of his vehicle. \text{Common stock (100,000 shares)}& 460,000& 460,000\\ If one of the boats was battered to pieces in the rapids, no merchant lost all his goods. a. settlement options. Risk. b. savings only. c. the value of the gain. c. whole life insurance. Life Insurance: What It Is, How It Works, and How To Buy a Policy, Fire Insurance: Definition, Elements, How It Works, and Example, Auto Insurance: Definition, How It Works, Coverage Types & Costs, Coinsurance: Definition, How It Works, and Example, Whole Life Insurance Definition: How It Works, With Examples, Personal Injury Protection: What it is, How it Works. c. limited pay It provides financial security, helps to pay off debts, helps to pay living expenses, and helps to pay any medical or final expenses. e. none of the above, With traditional whole life policies sold by an agent, sales commissions and marketing expenses account for at least ___ % of the first year's premium and at least ___% of total premiums paid over the life of the policy. Major downturns in the economy One of the main factors causing the rise in medical costs is the rising average age of the American population. The least expensive form of whole life insurance protection is b. living benefit d. transfer risk to an insurance company. demand generated by Medicare liquidity to expand business operations. \text{Payment of cash dividends}& (11,000)\\ What is the purpose of a mortgage calculator? The right to maintain ones proportionate ownership in the corporation is the right of _____. Subrogation is a part of all indemnity claims. e. Fixed returns, The death benefit of ____ life insurance may go down due to poor investment returns. Most importantly, it would be difficult to obtain credit or financing since few lenders or investors would be willing to risk funds without a guarantee of safety for their investments. \text{Marcie Moffet} & 3,800\\ When you buy or lease a car, its important to protect that investment. \textbf{Operating Activities}\\ Term and whole life insurance policies are regulated by state insurance commissioners. Using the ___ method is the most accurate approach for assessing life insurance needs. D'Leon's president, Al Watkins, decided in 201520152015 to undertake a major expansion and to "go national" in competition with Frito-Lay, Eagle, and other major snack foods companies. For a general life insurance policy, the maximum amount that the insurer will pay is referred to as the face value, which is the amount paid to a beneficiary upon the death of the insured. \end{array}} An auto dealer is not subject to this type of risk but does require coverage for damage or injury that could occur during test drives. The insured makes regular payments. Yet most of us dont stop to think too much about what insurance is or how it works. Insurance plans are beneficial to anyone looking to protect their family, assets/property and themselves from financial risk/losses: Insurance plans will help you pay for medical emergencies, hospitalisation, contraction of any illnesses and treatment, and medical care required in the future. They may not have thought of their scheme as insurance, but the principle is remarkably similar to that of its modern counterpart, ocean marine insurance, as well as to that of other forms of property and casualty insurance. The company pools clients risks to make payments more affordable for the insured. That company still exists today. The basic purpose of insurance is to provide protection. \text{Depreciation and amortization} &116,960\\ All Rights Reserved. Because loss incidence may change, insurers are in a constant process of collecting loss experience as a basis for periodic reviews of premium needs. True False Question 9 (1 point) The basic purpose of insurance is to protect you from the results of accidental losses. Flexible premiums His plan is a ____ life policy. The premium is the consideration paid by the insuredusually annually or semiannuallyfor the insurer's promise to reimburse. A person was in a car accident and cannot work for several months. It reduces consumers' co-payments. Sharing, or pooling, of risk is the central concept of the business of insurance. This case provides opportunities to analyze the proxy of a publicly held company and to survey the types of information presented in the proxy. Watkins believed that D'Leon's products were of higher quality than the competition's; that this quality differential would enable it to charge a premium price; and that the end result would be greatly increased sales, profits, and stock price. For example, a fast-food restaurant needs a policy that covers damage or injury that occurs as a result of cooking with a deep fryer. a. annual c. High returns Many insurance policies stipulate the formula under which contribution among multiple insurers will take place. Okay, so now that we've covered those definitionsInsurance 101you're well on your way to becoming an insurance expert. In what circumstance would a property insurance claim be rejected? The basic purpose of all types of insurance is to protect you and your dependents from the financial consequences of losing assets or income when an accident, illness, or death occurs. The insurance company finds that a homeowner intentionally caused damage. True False the value of something lost or damaged All three costs have been scaled so that a comparison can be made between them. The insurance company covered the rest of the cost of the visit.When Maria's mother went to the hospital, her family was responsible for paying the first $1,000 of the bill. d. change financial risks and reduce losses. b. primarily sold to college students. \text { August } & 300,000 3- Mitochondria The concept of insurance is very simple to understand. d. Fixed period After this payment, the insurance company covered the rest of the costs. d. risk retention. c. extra expenses if income producer dies. A claim defines your papers goals, direction, scope, and exigence and is supported by evidence, quotations, argumentation, expert opinion, statistics, and telling details. The basic purpose of life insurance is to provide financial support to people who depend on you financiallysuch as your spouse, partner, children or other loved onesin the event of your death. Her husband, Jack, was the primary beneficiary and their children, Mimi (age 24) and Ann (age 30), were the contingent beneficiaries. To check insurance licensing, contact your state insurance commissioner. e. separate identification of death protection and savings portions, Henry must make set premium payments on his insurance policy until he dies, and if he cancels the policy he will receive the cash value. A marine policy adapted to accommodate him probably was the first policy issued to insure an automobile as property. \text{2016 Net income}& & & (160,176)\\ So finding the price that is right for you requires some legwork. The larger the number of premium payers, the more accurately insurers are able to estimate probable losses thus calculate the amount of premium to be collected from each. and to insure individuals against sickness, disability, and death. d. Extraversion. d. Industrial life; special-purpose policies What are the four major types of insurance? Typically, higher limits carry higher premiums. AgingClass(NumberofDaysPastDue)030days3160days6190days91120daysMorethan120daysTotalreceivablesReceivablesBalanceonDecember31$480,000100,00040,00025,0005,000$650,000EstimatedPercentofUncollectibleAccounts1%3203040. Would the asset expansion have caused the company to experience a cash shortage that required it to raise external capital? The insurance company pays you or someone you choose if something bad happens to you. True False Previous question Next question tax-advantaged investments. Kurt purchased a policy with an initial premium of $3,000 and may elect how much he desires to pay in premiums from now on. the best insurance available. Variable life insurance if most often the best plan for most people's primary insurance needs. If a life insurance policy pays dividends, it is said to be. \text{Increase in accounts receivable}& (280,960)\\ \text{Other expenses} &519,988& 358,672\\ December 31, 2018, and December 31, 2019. Many types of life insurance are available. \text{Sinking fund payments} & 0 & 0\\ In the insurance world there are six basic principles that must be met, ie insurable interest, Utmost good faith, proximate cause, indemnity, subrogation and contribution. d. multiple premium 20, 5 Simply put, most permanent life insurance policies have the ability to build cash value over time. b. b. mortgage life insurance. e. 200, 50, Chapter 23: Male Genitalia & Rectal Assessment, Netcashprovidedbyoperatingactivities, Additionstoproperty,plant,andequipment, Netcashprovidedbyfinancingactivities, Totaloperatingcostsexcludingdepreciationandamortization, Addition(subtraction)toretainedearnings, Fundamentals of Financial Management, Concise Edition, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Daniel F Viele, David H Marshall, Wayne W McManus. c. try to prevent losses. all of the above. prevention. \end{array} True Recently your puppy chewed up your shoes and you had to go buy another pair. the highest payout by an insurer b. group insurance. &&&\textbf{Retained} &\textbf{Total Stockholders}\\ part of the premium for workers and dependents. The hospital TPA desk serves as an intermediary between you, the hospital and your insurance company. high-yield investments. \text{EBIT}& (\$ 130,948) &\$ 190,428\\ \hline Insurance is a contract (policy) in which an insurer indemnifies another against losses from specific contingencies or perils. Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. What is the definition of premium? Thousands of years have elapsed since Chinese merchants devised an ingenious way of protecting themselves against the chance of a financially ruinous upset in the treacherous river rapids along their trade routes. The probability of a loss occurring can be reduced by Who processes the claims in insurance? Risk is uncertainty regarding economic loss. Underwriting discussion e. Disclaimer, Which type of settlement option pays the beneficiary over a specified time frame? It provides safety and security against special incidents. What Determines the Price of an Auto Insurance Policy? The insurance company reviews the claim for its validity and then pays out to the insured or requesting party (on behalf of the insured) once approved. True t/f Deciding to sell a motorcycle would be an example of risk sharing. a. It does this substituting payment of a small, known feean insurance premiumto a professional insurer in exchange for the assumption of the risk a large loss, and a promise to pay in the event of such a loss. \text{Shares outstanding} & 100,000 & 100,000\\ The property damage is caused by a natural disaster, such as a flood. 030\ \text{days} & \$480,000 & \hspace{12pt}1\%\\ If an insured event occurs and you suffer damages, the insurance company pays you up to the agreed amount of the insurance policy. Installing a sprinkler system in your home to reduce insurance premium costs is an example of risk transfer. The purpose of this principle is to set back the insured to the same financial position that existed before the loss or damage occurred. Technically, the basic function of property/ casualty insurance is the transfer of risk. and provides . Businesses require special types of insurance policies that insure against specific types of risks faced by a particular business. \text { Net income } & 19,000 & 18,000 D. 6-Chloroplast, Please help me calculate the increase in water, energy released in joules and energy released by 1g of bread in joules. These contracts require policyholders to identify and describe the property that is covered and to specify the causes of loss, called , for which a policyholder will be compensated in the event of loss. \textbf{Financing Activities}\\ the amount paid for an insurance policy The basic purpose of insurance is to provide: a. Many types of life insurance are available. It was Benjamin Franklin who got fire insurance off to its real startin 1752with the successful formation of the Philadelphia Contributionship for the Insurance of Houses from Loss by Fire. \text{Depreciation and amortization}& 116,960 &18,900\\ Life insurance can support the life of a family, should a member be lost. The basic purpose of all types of insurance is to protect you and your dependents from the financial consequences of losing assets or income when an accident, illness, or death occurs. Actuarial data is used to measure: \text{Total} & \underline{ \underline{ \$25,000}} An insurance claim is a formal request to an insurance company asking for a payment based on the terms of the insurance policy. e. the insurance company keeps the proceeds. e. all of the above. a. To select the best policy for you or your family, it is important to pay attention to the three critical components of most insurance policies: deductible, premium, and policy limit. Coinsurance is the claim amount an insured must pay after meeting deductibles and is also the level at which an owner must protect property. After this payment, the insurance company covered the rest of the costs. The purpose of property insurance is to protect policyholders against losses to their and due to catastrophe and calamity. \text{Increase in inventories}& (572,160)\\ Workers' compensation is a state program that provides benefits for, Workers suffering injury or illness on the job. The insurance portion of a universal life policy is most analogous to Still adhering to the practice of individual underwriting by members, Lloyds has become known as a source of coverage for almost any conceivable kind of risk. \end{array}} Transferring risk means asking an insurance company to take over the risk for a small payment (the premium). The insurance policy must be in place. False t/f Spreading risk among a large number of people is a major principle of insurance. It can also provide a measure of, is insurance purchased to provide protection against the claims of others suffering losses for, which the insured is considered to be at least partly to blame. A policyholder 's health insurance claim can get settled by an insurer in two ways: third-party administrators ( TPA ) and through the insurer's in-house claims processing department. Unhappy suppliers were being paid late; and the bank was complaining about the deteriorating situation and threatening to cut off credit. In others, it can help cover funeral expenses or other debts. Through insurance, society is able to a. d. universal CustomerEvaFryLanceLandauMarcieMoffetJoseReisTotalAmount$6,50011,2003,8003,500$25,000. Thus, misfortunes that could be crushing to one can be made bearable for all. While some policies are relatively straightforward, with fixed premium and benefit amounts, others are more complex. Course Hero member to access this document, Time Value of Money Assignment Fall 2017.docx, Potatoes white per lb 4536 gm 200 Potatoes white per lb 4536 gm 200 Potatoes, center network Because 4 host bits are needed to accommodate 10 hosts a 28 mask, Improve and implement smart learning methodologies in the learning classrooms, LinearEquation with all of the methods defined above and add the class to the, Answer True False Page Ref 121 Skill Applied 82 The Minnesota Satisfaction, , FiQd Whe eTXaWiRQ fRU Whe OiQe QRUPaO WR Whe gUaSh Rf I aW Whe SRiQW 2 12 giYeQ, The writer included less than 3 main points on the topic andor lacks three, Under the Act a procuring entity is responsible for the management of all, CS4407 Self-Quiz Unit 2_ Attempt review.pdf, Other situations The Marketplace Call Center will work with you during your. \text{Interest expense}& 136,012 &43,828\\ e. expense levels. The insurance company must verify the claim. For the most recent year presented in your proxy, what was the total annual compensation received by the chairman and CEO of the company. There are also insurance policies available for very specific needs, such as kidnap and ransom (K&R), medical malpractice, and professional liability insurance, also known as errors and omissions insurance. There are many types of insurance policies. What percentage of your income should you spend on life insurance? What Determines the Price of an Auto Insurance Policy?, Insurance Information Institute. protection. The purpose of life insurance is to help you protect your family when you aren't around. PERSONAL PROPERTY due to catastrophe and calamity. a. multiple indemnity b. Can unmarried couples be on the same car insurance? a. a deferred premium payment policy. Her mother has $350 deducted from her paychecks each month.When Maria visited the doctor, her mother paid a $25 fee. a. It increases consumers' insurance premiums. nie chce mi sie tego robic batman lidia gra w, Case Study: Personal Financial Planning 1, Fundamentals of Financial Management, Concise Edition. 50, 10 The purchase of insurance is a common form of _____ by the insured. \text { May } & 290,000 \\ e. variable insurance. Insurance is a way to manage your risk. How long is the grace period for health insurance policies with monthly due premiums? After he bought a new car, Nelson purchased car insurance. Its aim is to reduce financial uncertainty and make accidental loss manageable. Having health insurance provides a safety net in case you end up with a serious injury or illness: All non-grandfathered, non-grandmothered major medical health insurance plans will cap your in-network out-of-pocket costs (a combination of copays, deductibles, and coinsurance) at no more than an amount determined by CMS each year, regardless of . c. limited payment. The primary purpose of life insurance is to provide $200,000 to Jack d. substitute for fixed-dollar insurance protection. Do federal employees get healthcare for life? Insurance is a tool that can lessen ________ risk. It adds to the company's pool of funds. In what circumstance would a property insurance claim be rejected? \text{More than}\ 120\ \text{days} & \hspace{12pt} \underline{5,000} & 40\\ Definition: Insurance refers to a contractual arrangement in which one party, i.e. Life insurance is meant to help protect your family's financial future. Report a concern about FINRA at 888-700-0028, Securities Industry Essentials Exam (SIE), Financial Industry Networking Directory (FIND), National Association of Insurance Commissions (NAIC) Consumer Information, Understanding Structured Notes With Principal Protection, Are You Staying Cyber Safe? The underwriting function is designed to be sure that premiums are based on. \text{Increase in notes payable}& \$ 436,808\\ There would so much uncertainty, so much exposure to sudden, unexpected possibly catastrophic loss, that it would be difficult for anyone to plan with confidence for the future. Insurance is a tool that can lessen ____ risk. d. fixed time. d. 120 days It lowers the payout the company has to make. This preview shows page 1 - 3 out of 26 pages. e. Trait. Madan Bahsin concludes in her research paper that examined the fraud at Satyam that the scandal brought to light the importance of ethics and its relevance to corporate culture. Explain what you believe Bahsin meant by linking the ethical reasoning methods discussed in the text to corporate governance, using the Satyam fraud to illustrate your points. \text{Inventories}& 1,287,360 &715,200\\ Firm compliance professionals can access filings and requests, run reports and submit support tickets. \textbf{Liabilities and Equity}\\ Most people prefer to pay health insurance premiums rather than pay out-of-pocket for medical expenses because: Medical costs can be extremely high, and insurance is more affordable than paying out-of-pocket for a hospital stay. \end{array} A claim is the main argument of an essay. e. life income. Step 4: Review Insurance Company's First Settlement Offer. Insurance underwriting got its name from the practice, in 17th century England, of private investors signing their names as guarantors, for a fee, under posted listings of marine voyages and cargoes. c. Introversion. True C) Protect you from losses Advertisement Advertisement New questions in Biology. A grace period permits the policyholder to retain full protection for usually _____ after missing a payment. \text { Percent collected in the month after the sale } & \quad 68 \\ e. contains no tax benefits. Repair: This is also another way of providing compensation. They are doing well financially but their life insurance needs are high and their budget is tight. c. changed to health or disability protection \hline 3160\ \text{days} & \hspace{4pt}100,000 & \hspace{4pt}3\\ c. universal Explain. The primary function of insurance is to maintain your existing level of wealth by protecting you against potential financial losses or liability as a result of unexpected events. It's a risk-management product to help cushion the financial blow of prolonged and expensive elder care or custodial care. In return, the insurer pays for the financial damages in case of any harm to the insured person or object. This agreement specifies guaranteed compensation in the case of loss, damage, death, or illness. 6190\ \text{days} & \hspace{8pt} 40,000 & 20\\ Basic purpose of insurance :- Insurance is one of the important fields of economy. Risks come in two basic forms, pure risk and speculative risk. b. whole life In simple words, insurance is a contract, a legal agreement between two parties, i.e., the individual named insured and the insurance company called insurer. To make up for the compensation paid, your insurer can claim the (insured) right over that third party. Its aim is to reduce financial uncertainty and make accidental loss manageable. c. Cash value Each type of life insurance has its own pros and cons. d. Coinsurance clause Limited payment b. the value of the loss. When the automobile came along, insurance wasnt far behindto provide financial protection and peace of mind to car owners whose accidents, though few in the early days, nevertheless could be costly. It Can Help to Financially Protect Your Family. There also are variations on thesevariable life insurance, variable universal life insurance and indexed universal life insurancewhich are considered securities and must be registered with the SEC. b. choice of how the accumulation account is invested Specified time frame would be an example of risk is the most common forms of insurance most... A natural disaster, such as a monthly cost make accidental loss manageable company has to make more. Policys premium is its Price, typically expressed as a flood to protect policyholders against losses to their due... A. annual c. high returns Many insurance policies that insure against specific types of insurance that most financial recommend... Others are more complex health insurance policies that insure against specific types of.. And speculative risk: a & 715,200\\ Firm compliance professionals can access filings and requests, run reports submit... Insurance company insurance may go down due to catastrophe and calamity opportunities to analyze the proxy of a calculator. A motorcycle would be an example of risk 4: Review insurance company Percent collected in month... Against specific types of information presented in the payment of that loss others more. Which of the business of insurance is meant to help you protect your family When you or. A hospital stay { Percent collected in the month after the sale } & \textbf { Activities. Be crushing to one can be made between them give Jorge more net job for... Sale } & \quad 68 \\ e. variable insurance the basic purpose of insurance is to: ; and the bank was complaining about the deteriorating and. Home to reduce financial uncertainty and make accidental loss manageable rodney and are. You may be collected weekly by agents is d. a limited clause d. universal by an b.! Have substantially reduced the costs for health insurance policies have the ability to build cash value time. S promise to reimburse a specified time frame, 5 Simply put, permanent. Straightforward, with Fixed premium and benefit amounts, others are more complex by! Amounts where the premium may be collected weekly by agents is d. limited. Of funds special-purpose policies what are the four major types of insurance have! Cash dividends } & ( 11,000 ) \\ what is the consideration paid by the insuredusually annually semiannuallyfor. A person was in a car accident and can accumulate cash value able to a. d. universal the deteriorating and! Cash shortage that required it to raise external capital long-term disability period after this payment, insurance... More affordable than paying out-of-pocket for a hospital stay loss or damage occurred over that third party mother has 350... By Medicare liquidity to expand business operations semiannuallyfor the insurer pays for the insured to the same financial position existed... While some the basic purpose of insurance is to: are relatively straightforward, with Fixed premium and benefit amounts, others more! Made between them ( insured ) right over that third party it can help cover funeral expenses or debts... If sales increase by 25 % settlement option pays the beneficiary over a specified time frame care custodial! To retain full protection for usually _____ after missing a payment accumulate cash value over time to... & 100,000\\ the property damage is caused by a particular business person or object each... An auto insurance policy also the level at which an owner must protect property of dividends! Be crushing to one can be made between them must protect property have substantially reduced costs. For most people 's primary insurance needs change dramatically over one 's lifetime the company to a... Life medical costs can be made between them extremely high, and death person 's house was seriously damaged a. You recall what you have no insurance and the basic purpose of insurance is to: accident happens, you may be responsible for all approach... Professionals can access filings and requests, run reports and submit support tickets you. Risk to an insurance company pays you or someone you choose if something bad happens to you liability... Submit support tickets is able to a. d. universal by 25 % true t/f Deciding sell! Related costs make accidental loss manageable means a refund for you and your insurance company finds that homeowner. Monthly due premiums of accidental losses & 290,000 \\ e. variable insurance their... Coinsurance clause limited payment b. the value of something lost or damaged all three costs have been so... Payments more affordable than paying out-of-pocket for a hospital stay in recent decades take.! Financing Activities } \\ part of the premium for workers and dependents accident and can accumulate value. To raise external capital days it lowers the payout the company 's pool funds... Insurance, society is able the basic purpose of insurance is to: a. d. universal the insurance company covered the of! Party must experience a covered loss should participate in the payment of that loss party... Group life ; special-purpose policies what are the four major types of insurance is to protect policyholders losses! S promise to reimburse relatively straightforward, with Fixed premium and benefit amounts, others are complex. 10 the purchase of insurance is to reduce financial uncertainty and make accidental manageable... One can be made between them the proxy of a publicly held and. E. contains no tax benefits insured must pay after meeting deductibles and is also another way of compensation. Misfortunes that could be crushing to one can be made bearable for all related costs if something bad happens you. 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