Which of the following statements describes an action of the agent that would belegal but not within the rules of the industry code of conduct?The agent submits a life insurance application that requests non-smokerpremium rates, even though he knows that the proposed life insured is a smoker.O The agent delays the delivery of a newly issued life insurance policy by twenty-five days.The agent carefully copies an applicant's signature, from a sample, onto anapplication in order to avoid having the applicant supply a missing signature.The agent takes an initial premium in cash and deposits it to his or her personalaccount, before writing a personal cheque to the insurer, a few days later, for theamount of premium.

Insurance refers to the contract that represents the policy taken by an individual or entity for…

Answered: Which of the following statements…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Stanley recently moved back to Ontario after living abroad for two years. He purchased a vehicle and is asking his Broker for insurance quotes. One insurance company's quote is favourable but the company prefers not to insure Stanley because of the gap in his insurance history. What should the Broker do to act within the scope of his agreement with the insurance company? Obtain approval for the risk from the Principal Broker for approval and then submit the completed application to the insurer.• Discuss the risk with the insurer's underwriter for binding approval and then submit the completed application to the insurer.•Discuss the risk with colleagues first and then submit the completed application to the insurer.•Submit the application without the driving gap as this will get Stanley the best rate.
General and Technical Rule Cases. Read the following cases. For each, state whether theaction or situation shows a violation of the AICPA Code of Professional Conduct; if so,explain why and cite the relevant rule.a. CPA Jerry Cheese became the new auditor for Python Insurance Company. Cheese knewa great deal about insurance accounting but had never conducted an audit of an insurancecompany. Consequently, Cheese hired CPA Tate Gilliam, who had six years of experience with the State Department of Insurance Audit. Gilliam managed the audit, andCheese was the partner in charge.
Which of the following would be accepted as a proof of liability insurance for automobile liability insurance? An expired insurance card provided by the insurance company A bound insurance application for which the check offered for payment was dishonored due to insufficient funds A liability insurance binder issued by the insurance producer in effect on the date the police requested proof of insurance Insurance declarations page with an expiration date prior to the date of the accident in question
The following description represents the policies and procedures for agent expense re- imbursements at Excel Insurance Company. Agents submit a completed expense reimbursement form to their branch manager at the end of each week. The branch manager reviews the expense report to determine whether the claimed expenses are reimbursable based on the company’s expense reim- bursement policy and reasonableness of amount. The company’s policy manual states that agents are to document any questionable expense item and that the branch manager must approve in advance expenditures exceeding $500. After the expenses are approved, the branch manager sends the expense report to the home office. There, accounting records the transaction, and cash disbursements pre- pares the expense reimbursement check. Cash disbursements sends the expense reim- bursement checks to the branch manager, who distributes them to the agents. To receive cash advances for anticipated expenses, agents must complete a Cash…
Ann Smith just saw her doctor. After the appointment, she was informed by the receptionist that the fee for the visit is $75 and that her insurance company will be billed for the visit. Ann was also notified that her insurance company will pay all of the fee except for the $20 co-pay, which she pays with her debit card right away. Because the doctor’s office has not entered into a contract, it would not record revenue until it verifies that the insurance company will pay. True or False?
The following description represents the policies and procedures for agent expense reimbursements at Excel Insurance Company. Agents submit a completed expense reimbursement form to their branch manager at the end of each week. The branch manager reviews the expense report to determine whether the claimed expenses are reimbursable based on the company’s expense reimbursement policy and reasonableness of amount. The company’s policy manual states that agents are to document any questionable expense item and that the branch manager must approve in advance expenditures exceeding $500. After the expenses are approved, the branch manager sends the expense report to the home office. There, accounting records the transaction, and cash disbursements prepares the expense reimbursement check. Cash disbursements sends the expense reimbursement checks to the branch manager, who distributes them to the agents. To receive cash advances for anticipated expenses, agents must complete a Cash…
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.
When nonrefundable upfront initiation fees are received by new members of a health club, the club recognizes the fees as Unearned revenue that may be recognized with the members' first visit. Revenue immediately. Unearned revenue that may be allocated over the contract period. The commission expense for the employee who signs up the new members.
During the year to 31 December 2019, a customer started legal proceedings against TCI Food company, claiming that one of the food products that it manufactures had caused several members of his family to become seriously ill. The company’s lawyers have advised that this action will probably not succeed. Should the company disclose this in its financial statements according to IAS 37?
When MUST the Policy Summary for a life insurance policy be delivered? Prior to the sales presentation With or prior to delivery of the policy Within a year after delivery of the policy Only upon delivery of a replacement policy.
Rachel, a CPA, is engaged to audit the financial statements of Nestor Company for the year ended December31, 20x1. Rachel obtained and documented an understanding of internal control relating to the purchasingprocess and set control risk at the maximum level. Rachel requested and obtained from Nestor a scheduleanalyzing prepaid insurance as of December 31, 20x1, and sent a confirmation request to Nestor’s broker. a. What substantive procedures should Rachel conduct in verifying the schedule of prepaid insurance and inresponding appropriately to the following assertions? 1) Existence and completeness2) Rights and obligations3) Valuation or allocation4) Presentation and disclosure b. What is the importance of the audit evidence gathered from the audit procedures?
Which of the following is true?a. Members of an audit engagement team cannot speak with audit client officers about matters outside the scope of the audit while the audit engagement is in progress.b. Audit team members who leave the public accounting firm for employment with auditclients can provide audit efficiencies (next year) because they are very familiar with thefirm’s audit plans.c. Audit team partners who leave the public accounting firm for employment with auditclients can retain variable annuity retirement accounts established in the person’s formerfirm retirement plan.d. The public accounting firm must discuss with the audit client’s board or its audit committee the independence implications of the client’s having hired the audit engagement teammanager as its financial vice president.

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