When compleling an insurance applicalion, a producer should A. complete as much of the application as possible before meeting wilh the applicant to save lime B. request that the applicant review he completed application before signing it C. avoid asking the applicant questions on he application which may be embarrassing D. omit informalion from lhe application which may cause the application to be rejected by the insurance company

When compleling an insurance applicalion, a producer should A. complete as much of the application as possible before meeting wilh the applicant to save lime B. request that the applicant review he completed application before signing it C. avoid asking the applicant questions on he application which may be embarrassing D. omit informalion from lhe application which may cause the application to be rejected by the insurance company

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 3MCQ

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When compleling an insurance application, a producer should A.complete as much of the applicalion as possible before meeting with he applicant to save time B.request hat the applicant review the completed application before signing it C.avoid asking the applicant questions on he application which may be embarrassing D.omit information from he application which may cause the application to be rejected by the insurance company
Insurance companies may use all of he following sources to oblain underwriting information about an applicant EXCEPT. A.The Medical Information Bureau (MIB) B.Inspection report companies C.Actuarial raling bureaus D.A Fair Credit report
XYZ Insurance Company, a relatively small general insurer, has outsourced its claims adjusting function. Now, when a claim is reported, the insurer notifies the outsource adjusting company, which then causes one of its adjusting personnel to visit the site of the loss and prepare an estimate as to the amount that will have to be paid to settle the claim. The outsource company then notifies the insurer of the amount and this is set up as a case provision in the insurer’s claim files. XYZ has indicated that the adjusting company is more specialized and has greater expertise in this area than the insurer can support in houseFor claims that can be settled in a straight-forward manner, the adjusting company will pay the claim and then invoice XYZ for the amount. Discuss the 3 potential pitfalls in the use of an adjusting company. Discuss 3 advantages on the usage of an adjusting company. Are these sufficient to offset any advantages disadvantages. Explain your answer. You are an…
There are some risks that you can transfer to an insurance company. There are also risks that you may want to retain. We all know the common risks that are transferred to insurance companies: auto, home, health, life. Detail a risk that could be transferred to an insurance company, but isn’t utilized as often as the most common ones mentioned. Explain the risk that can be transferred, when it’s used, and why it isn’t.
Please answer the multiple choice questions below: 1. One possible solution to adverse selection problem is to offer warranty, as it would be viewed as a signal of quality. 'Signalling' refers to?  i) Actions ofthe 'Informed party'in the adverse selection problem ii) Actions of the 'less informed partyin the adverse selection problem ii) Actions of an Insurance company to gather information.  A) i Only B) Both iand i C) Both iand ii D) Both i and ii 2. Which of the following is NOT an example of non-deposit taking financial institution (NDFI)? i) Insurance companies ii) Unit Trusts iii) Building Societies iv) Leasing Companies A) All the above (i, ii, iii and iv) B) Both i and ii C) iii Only D) Both iii and iv 3. Which of the following is not TRUE for financial ratio analysis? Select one: A) The ratios are not exhaustive. B) Comparisons with other firms can only be made with firms of the same size and activity. C) Generally one year’s figures are sufficient. D) Ratios don’t…
Discuss the potential for adverse selection when insureds exercise the renewability or convertibility option in a term life insurance policy. Which is more likely to be affected by adverse selection.
Insurance planning is important to protect a person from an unforeseen event like premature death, disability, illness, property loss, liability or unemployment. However, conventional insurance is prohibited in the Shariah because _____ a. It involves conventional investment planner. b. It is against the faith of destiny (qada wa qadar) that everything is decided by Allah the almighty c. It involves uncertainty (gharar) in the transaction
How does the relationship between the two insurance advisors impact advisory ethical decision-making in cases where the senior advisor is paid overrides?
The Director of Insurance has the power to. make reasonable insurance rules and regulations determine standard insurance rales Veto insurance laws issue insurance policies
An insurance broker whose registration is "restricted to oftine following activities? Acting Under Supervision" may NOT perform which one (1)•Sign letters to members of the public recommending insurance coverage.•Solicit insurance except in the presence of their supervisor.•Deposit insurance premiums in their own trust bank account.•Collect premiums on behalf of the insurance broker by whom they are employed.
One problem facing insurers is that there is a risk that a person will act differently if he/she does not bear all of the consequences of his/her actions. For instance, people with auto insurance policies may drive less carefully than they would drive if they were going to have to pay the full amount of any damages they caused/created. This problem is known as: A. Adverse selection B. Consumer deception C. Moral hazard D. Insurance fraud
Give typing answer with explanation and conclusion Discuss the criteria of insurability in relation to an insurance industry innovation of your choice. Highlight opportunities to enhance limits to the insurability of this innovation.