True or False? 1. An insurance contract is derecognized when it is extinguished and when it is modified where the modification meets any of the conditions for derecognition. 2. The occurence of the event must be certain at the inception of the insurance contract.
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True or False?
1. An insurance contract is derecognized when it is extinguished and when it is modified where the modification meets any of the conditions for derecognition.
2. The occurence of the event must be certain at the inception of the insurance contract.
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Solved in 3 steps
- Does the rule rendering an insurance contract voidable as a result of concealment apply with equal force to all types of property insurance?Indicate whether the statement is true or false, and justify your answer.The main advantage of a Cochrane insurance contract over a guaranteed renewable contract is that it does not rely on a legally unenforceable binding lifetime commitment.Which of the following is not one of the groupings of insurance contracts under PFRS 17?A. those that are not onerous at initial recognition but can become onerous in subsequent periodsB. those that pay premiums at initial recognition which are to be measured using the simplified approachC. those that are onerous at initial recognitionD. those that, at initial recognition, have no significant possibility of becoming onerous in subsequent periods
- An implied condition of pooling risks with insurance is that the event being insured against is under the control of the individuals. TRUE or FALSE Strictly speaking, the price of insurance is the pure or actuarily fair premium TRUE or FALSEWhich of the following types of insurance does NOT involve a contract with an external party? a. self insurance b. directors and officers insurance c. property insurance d. life insuranceWhich of the following is not one of the groupings of insurance contracts under PFRS 17? those that pay premiums at initial recognition which are to be measured using the simplified approach those that, at initial recognition, have no significant possibility of becoming onerous in subsequent periods those that are onerous at initial recognition those that are not onerous at initial recognition but can become onerous in subsequent periods
- _____ is a contract that involves compensation for specific potential future losses in exchange for periodic payments and that provides for the transfer of the risk of a loss, from one entity to another, in exchange for a premium. a.Spot contract b.Insurance c.Hedging d. Forward contractWhat is meant by the expression, “The policyholder gets the benefit of the doubt,” in connection with any interpretation of the provisions of the life insurance policy?Which of the following is a characteristic of a current liability? A. It is an avoidable obligation. B. It occurs because of a future transaction or event. C. It cannot be settled with services. D. It creates a present obligation for future payment of cash or services.
- If an insured fails to pay the premium when due, the insured's heallh policy will remain in force for a specified period of lime under which of lhe following provisions? A.Grace Period B.Waiver of Premium C.Guaranteed Insurability D.Entire ContractThe promises of the insurer are found in the insurance policy. True False3330 Which of the following actions represents consideration in an insurance contract? a. paying the premium b. filing a claim c. missing the policy d. endorsing a policy