3. Why is it important for insurance companies to have a large pool of people paying premiums?

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: What are the performance measures of an insurance company?

A: Insurance is a contract in which an individual or business receives financial protection or…

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: II. Case Application. Answer the following situations by applying what you have le the previous…

A: Insurance is important and necessary part of life due to too much risk involved in the life of…

Q: ain ONE key financial risk that an insurance company is exposed to. Explain the policies and…

A: Basic Concept of Insurance Financial risk in insurance and Mitigation

Q: S1: It is more advantageous and beneficial to the insured if there are more riders included in the…

A: Rider in insurance industry is an additional benefit given to the insured for the enhancement of…

Q: Who are the target customer of insurance companies?

A: Future events are uncertain and unavoidable, due to which risk arises. There are various methods to…

Q: Is insurance company a financial institution? Why?

A: Financial Institution:-These are those companies that are engaged in the business dealing with…

Q: 5. explain what the benefits of escrow for both the borrower and the lender may be? Do disadvantages…

A: When you make big investment or purchase property in the market than there is need of third party…

Q: 16. What is meant by a “hard market” and a “soft market” within the insurance industry?

A: Insurance Market- The business of selling and buying insurance products and the companies or parties…

Q: What is the importance of insurance companies?

A: Insurance firms are financial middlemen that provide direct insurance or reinsurance services,…

Q: What is the relationship between risk management and insurance buying and why do some argue that…

A: The question is based on the concept of risk management and the use of insurance as a tool of risk…

Q: 75. Insurance companies wouldn’t exist unless customers were willing to pay the price of the…

A: Insurance : Insurance can be understood as a contract under which a person or business obtains…

Q: How do insurance companies determine how much you should pay for your insurance coverage?

A: The amount of money paid for an insurance policy is termed as insurance premium. The premium is paid…

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: what are the pros and cons of being insured by a mutual insurance company vs a stock insurance…

A: There are two types of insurance companies: mutual insurance company and stock insurance companies.…

Q: Why would a life insurance company be concernedabout the financial stability of major corporations…

A: SOLUTION:- A life insurance company source of funds comes from premium it collects from policies…

Q: Who are front-line underwriters? What are premium volume and loss experience with the insurer? What…

A: Underwriters are the person who sell theshares on behalf of the firm. They are very useful for the…

Q: How does credit risk affect insurance companies

A: Credit risks affect insurance companies in a tangible and often direct manner.

Q: About Insurance, which one is wrong?     a. insurance firms purchase re-insurance to…

A: Meaning of Insurance Insurance means protection from business and financial loss. Insurance is a…

Q: 5. Some peode have high deductibles on their insurance policies in order mopthly rates. Others have…

A: Insurance plan with high deductible are better: 1. If you are young 2. If none of the elders or…

Q: How insurance companies works?

A: Insurance companies are the type of organizations that were established in order to cover the…

Q: what is one example of a risk management strategy used by insurance companies to mitigate…

A: An underwriter's potential loss is known as underwriting risk. Underwriting risk in insurance can…

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: A friend tells you about a plan for the formation of an insurance company that will issue insurance…

A: Insurance can be provided for things probability of which occurrence is minimum So that minimum…

Q: tell me why the use of reinsurance contributes to the solvency of the ceding insurer.

A: By ceding a portion of their risk, ceding companies reduce their overall risk exposure and…

Q: What are the differences between an insurance agent and an insurance broker? Discuss.

A: Insurance brokers are individuals that sells, buy or negotiate variety of financial products that…

Q: why is it important for insurance companies to manage underwriting risk?

A: in contract of insurance there is a guarantee by insurance that it will pay the damage or loss .…

Q: Prepaid insurance is what it sounds like.

A: The prepaid expenses are the expenses that are paid in advance but not yet due for payment.

Q: . What functions are carried out by insurance companies? Given these functions, how do insurance…

A: Hi, since you have asked multiple questions, we will answer the first one, as per authoring…

Q: How does the Insurance Commission assure the investing public on the safety of the Insurance…

A: Insurance Commission is an amount paid to the broker or agent of insurance products for selling the…

Q: Do risk influence people to go for insurance? What is the relationship between risk and insurance?

A: Yes, risk influences people to go for insurance. Several kinds of risks influence a person to get…

Q: Why are people often willing to pay more for insurance than the expected valueof the coverage?

A: Insurance coverage is the amount of risk covered for an individual which are assured by insurance…

Q: Insurance companies perform functions that are similar to those of investment companies. * True or…

A: Insurance companies are those companies that have been formed in order to cover the loss of an asset…

Q: Which of the following permitted banks the ability to sell insurance? O The Sarbanes-Oxley Act The…

A: ANSWER : The Financial Services Modernization Act.

Q: 3.Define the meaning of underwriting. Briefly explain the basic principles of underwriting.

A: Note: “Since you have asked multiple question, we will solve the first question for you. If you want…

Regulation of Commercial Banks

The main function of any commercial bank is accepting deposits and lending money to borrowers. Apart from these two activities, commercial banks provide a host of other services to their customers, like discounting bills of exchange, acting as a custodian of a customer's will, and so on. In the absence of a proper regulatory framework or proper regulations in place, the commercial banks would have ended up charging exorbitant or varied rates of interest or service charges on the funds loaned by them or the services performed by them.