Underwriting risk results when the premiums generated on a given insurance product line are insufficient to cover all of the following EXCEPT: a.All of the above. b.Increased premiums. c.Increased expenses. d.Increased claims.
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Underwriting risk results when the premiums generated on a given insurance product line are insufficient to cover all of the following EXCEPT:
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- The _______________ problem is when customers who are most likely to have a claim against an insurance company are those quickest to apply for an insurance contract. Group of answer choices a. Capital adequacy b. Default risk c. Adverse selection d. Mismatched maturityASAP When an insurer accepts accepts risk from a large number of enrollees.OA. the average loss that will be incurred by the insurer becomes much less predictableOB. the average loss that will be incurred by the insurer becomes much more predictable.OC. the average loss that will be incurred by the insurer can be calculated with certainty.O D.the average loss that will be incurred by the insurer becomes impossible to predict.IDENTIFICATION: What area of insurance companies is faced with therisk that estimates of loss reserves may not bereasonable?
- Kindly help Which of the following statements about life insurance is NOT accurate? a) permanent insurance puts a portion of the premium paid into investment which the insured then has the potential to cash in and recoup, whereas the premium paid for term insurance is simply a sunk cost for the insured . b) permanent insurance guarantees that the policy will pay out the face value to the beneficiary upon the death of the insured , whereas term insurance won't pay out anything at all once the term has finished. c) Term insurance is almost always less expensive than permanent insurance- both the monthly premium amount as well as the amount typically spent on insurance overall. d) Term insurance is simple life insurance policy that involves a less complicated contract with fewer provisions and exemptions , whereas permanent is the type of insurance that you must take care in reading the detailed fine print in the policyIf the renewal of the policy was at the discretion of the insurer, would you expect the premiums to be higher or lower?explain what The decline of insurance as a risk-financing technique is and give examples
- Premium deficiency arises when the unearned premium reserve is less than the estimated claims related expenses. Is this true or false? Can you tell me why? ThanksIt pertains to a risk management technique when acquiring a life insurance. *risk avoidancerisk retentionrisk transferanswer not givenWhich of the following stalements is required by Long- Term care insurers when referring lo inflation proleclion in qualified Long-Term Care policies? A.All policies must include inflation protection. B.It is mandatory for the insurance companies lo offer consumers the option of inflation protection. C.The insurance companies have the choice if hey want to offer inflation protection. D.The purchaser must requesl inflation protection after lhe policy is issued.
- Under the revised Annuity Suitability Model Regulation, all obligations to meet the consumer best interest standard and ensure that a consumer's financial needs and objectives are addressed now fall to the producer. Insurers have no obligations or practice standards under the new regulation. A.True b. FalseS1: 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 incorrectThe investment income generated between the time premiums are received and the time claims are paid may result in underwriting risk due to? a. Unexpected decreases in investment yields or returns. b. Unexpected increases in investment yields or returns. c. Unexpected increases in expenses. d. Unexpected decreases in expenses.
