What is the consideration for the insurer in an insurance contract?
Q: (a) Cite an example of a contract which is contrary to morals, (b) Can the nullity of the…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: J requests insurance on a neighbor's home in his own name. The insurance producer explains that such…
A: Since you have posted multiple questions, as per answering guidelines we shall be solving first…
Q: are, in essence, an insurance contract against the default of one or more borrowers.
A: A credit default swap (CDS) is a financial derivative or contract that allows an investor to "swap"…
Q: Which of the following does not relate to credit risks? Select one: A. Credit risk is the…
A: Before answering the question, we should understand what Credit Risk means Credit Risk: It is the…
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: The contract between insured and insurer is O a. Coverage O b. Face value Oc. Policy O d. Premium
A: Insurance means where insurance company agree to pay the specified amount to insured person in case…
Q: What is meant by the expression, “The policyholder gets the benefit of the doubt,” in connection…
A: All insurance policies favour the insured person if there is any doubt etc benefits of doubt is…
Q: 3, Which of the following principles of insurance denotes a positive duty of the person seeking…
A: Utmost good faith principle of insurance: As a general rule, insurance contracts are governed by the…
Q: What is the role of Insurance company?
A: Answer no 3. Insurance companies are a part of financial system and considered as a safeguard the…
Q: The formal document that outlines the paym lender and the borrower is: the acceleration clause. O…
A: There is agreement between borrower and lender for payment of loan.
Q: Differentiate between “Compensatory contract” and “Non-Compensatory contract”. Does the concept of…
A: “Since you have asked multiple questions, we will solve the one question for you. If you want any…
Q: A contractual agreement in which the borrower receives something of value now and agrees to pay the…
A: Solution: A contractual agreement in which the borrower receives something of value now and agrees…
Q: The policy holder who receives the coverage is called ________________. a. Premium b. Face value c.…
A: There are various terminology used in insurance business
Q: risk" factor
A: Risk is a term that shows the possibility of injury or loss to the health, business, vehicle, etc.…
Q: 1. The significant risk that is transferred from the policyholder to the issuer of an insurance…
A: ‘’Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Differentiate between the contract and concept of Takaful and Conventional Insurance
A: Insurance refers to the contract in which the insurer provides the risk protection facility to the…
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: An insurance refers to a signed agreement between the insured and the insurer. a. Security b.…
A: In Insurance there are two parties, Insurer and Insured
Q: The company selling the insurance policy is the _________________. a. Insurer b. Policy c. Premium…
A: Insurance is a means of protection from financial loss.
Q: Which of the following people represents several insurance companies but owns the policy…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Which of the following actions represents consideration in an insurance contract? a. paying the…
A: Insurance contract is a contract entered between Policyholder (Insured) and the Insurance company…
Q: Which statement/s is/are correct? S1 PFRS permits the introduction of an accounting policy that…
A: Insurance contracts mix options of each a money instrument and a contract. Additionally, several…
Q: Which of the following is not one of the groupings of insurance contracts under PFRS 17? A. those…
A: International financial reporting standard 17 or IFRS 17 deals with the standards relating to…
Q: An insurance refers to a signed agreement between the insured and the insurer. O a. Certificate O b.…
A: Insurance policies are beneficial to people as it provides cover against uncertainties, significant…
Q: Which of the following arises when the seller's right to consideration from a customer is…
A: A receivable is recognized by the entity when the entity's right to consideration is unconditional…
Q: Company
A: Insurance is defined as a financial arrangement between the insured & the insurance company…
Q: What is/are the rule/rules (and the exceptions, if there be any) in case an object is lost or…
A: Fortuitous events are the events that are considered as the "act of God" because naturally, the act…
Q: In case of life insurance policies with profits, policy holders are given the right to participate…
A: Answer
Q: S1: One characteristic of an insurance contract is to transfer insignificant risk from the…
A: According to PFRS 4, an insurance contract includes the significant insurance risk that is…
Q: 5. Which of the following actions showcases the principle of "uberrima fides"? O A. Lying about…
A: Uberrima fides is a Latin word which means "utmost good faith".
Q: he consideration paid by insured in a contract of in - premium C. prepaid insurance insurance…
A: The insurance companies do different kind of insurance for the companies depending on the risk and…
Q: Which of the following is NOT an example of non-deposit taking financial institution (NDFI)? i)…
A: Hello. Since your question has multiple parts, we will solve first question for you. If you want…
Q: Entity A obtains life insurance for its key employee from Entity B (an insurance company). Entity B…
A: Account for Insurance Contract Here the actual facts which was incurred was Entity A can obtain life…
Q: Indicate whether the statement is true or false, and justify your answer.The main advantage of a…
A: Given: The main advantage of a Cochrane insurance contract over a guaranteed renewable contract is…
Q: 2) Explain why offer and acceptance is essential to the formation of a binding insurance contract?
A: An insurance contract is a legally binding agreement between the insurer and the insured. It is a…
Q: QUESTION 1 Explain the four legal principles associated with insurance contracts in detail,…
A: Insurance: It is a contract between two parties under which one party takes the responsibility to…
Q: How do insurance companies calculate their premiums?
A: Insurance guarantees payment of a stated benefit after completion of a defined period. After expiry…
Q: Explain the difference between commutative contract and non-commutative contract. Why Insurance is…
A: COMMUTATIVE CONTRACT In Arabic aqd mu'awadha, it is a type of compensatory contract whereby one…
Q: Discuss how Unilateral contract suits insurance than commutative contracts
A: An insurance contract is a kind of legal document that lays down the agreement terms between the…
Q: Goods on consignment should be included in the inventory of
A: As per our protocol we provide solution to the one question only and that too if the question is…
Q: Why are the credit default swaps, in essence, an insurance contract against the default of one or…
A: Credit default swaps are derivatives contract between two investors in which investors who has lend…
Q: he contract between insured and insurer is ______________. a. Coverage b. Premium c. Policy d. Face…
A: Insurance means where insurance company agree to pay the specified amount to insured person in case…
Q: Which of the following is an arrangement by which one party promises to pay a sum of money to…
A: Options a,b and d are not correct. This is because investments are amount deposited in different…
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…
What is the consideration for the insurer in an insurance contract?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Choose the best answer. 1.Which statement is TRUE about an insurance contract? * a.The insurer is the party that has an obligation under an insurance contract to compensate a policyholder if an insured event occurs. b.The policyholder is the party that has a right to compensation under an insurance contract if an insured event occurs. c.The insured event is an uncertain future event that is covered by an insurance contract and creates insurance risk. d.All of these statements are true about an insurance contract. 2. IFRS 17 provides that insurance contracts should * a.Comply with all existing IFRS b.Generally continue to be subject to existing accounting policies. c.Comply with the IFRS Framework document. d.Be covered by IAS 32 and IFRS 9 3.An insurance contract can contain both deposit and insurance elements. An example might be a reinsurance contract where the cedant receives a repayment of the premiums at a future date if there are no claims under the contract. Effectively this…Which is not an essential characteristic of an insurance contract? A. transfer of significant risk from the issuer to the policyholder B. policyholder pays the issuer for the transfer of risk C. issuer indemnifies the policyholder for losses when the insured event occurs D. none of the above3330 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
- 3.Define the meaning of underwriting. Briefly explain the basic principles of underwriting. 4.Explain the reasons why the insurance industry is regulated. 5.Why is an insurable interest required in every insurance contractS1: 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 incorrectWhich 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 insurance
- N1 How life insurance contracts are different from other financial services or products?1. The significant risk that is transferred from the policyholder to the issuer of an insurance contract is:a. Lapse or persistency riskb. Financial riskc. Expense riskd. Insurance risk2. Under the general model of PFRS 17, a group of insurance contracts is initially measured at:a. The fulfillment cash flowsb. The contractual service marginc. Either a or bd. Both a and b3. A group of insurance contracts is subsequently measured at:a. The liability for remaining coverageb. The liability for incurred claimsc. Either a or bd. Both a and b4. According to PFRS 17, an insurance contract is NOT derecognized when:a. Expiredb. Terms have been modified, and the modification is not substantivec. Terms have been modified, and the modification is substantived. Extinguished5. According to PFRS 17, an accounting service result is recognized in:a. Profit or lossb. Other comprehensive incomec. Statement of financial positiond. Partly in profit or loss, and partly in other comprehensive incomeUse the…Which of the following is not an insurance management tool? Group of answer choices deductibles. screening of applicants. limits on insurance. restrictive covenants. signalling.
- _____ 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 contractThe promises of the insurer are found in the insurance policy. True FalseTRUE OR FALSE 1. PFRS 4 SUPERSEDES PFRS 17 2.INSURANCE RISK WILL BE DEEMED SIGNIFICANTLY ONLY IF AN INSURED EVENT COULD CAUSE AN INSURER TO PAY SIGNIFICANT ADDITIONAL BENEFITS IN ANY SCENARIO 3.PFRS 17 APPLIES TO REINSURANCE CONTRACTS 4.AN ISURANCE CONTRACT CANNO CONTAIN MORE THAN 1 NON- INSURANCE COMPONENT