Life insurance policy reserves are the estimated current worth of expected future payouts. true or false?
True. Life insurance policy reserve states that a stipulated amount must be taken to provide the pay off in case of claim by the buyer of insurance. Hence the present woth is the PV of all expected future payoffs
Life insurance policy reserves are the estimated current worth of expected future payouts. true or false?
1(a.) (TRUE or FALSE?) We mark it up the value of a future promised or expected cash payment because it is worth more if the same amount of money is to be received later rather than now. 1(b). (TRUE or FALSE?) Money expected or promised in the future is worth less than the same amount of money in hand today. 1(c). (TRUE or FALSE?) The payments of an amortized loan reflect a decreasing amount going toward principal and an increasing...
Walter owns a whole-life insurance policy worth $60,100 that directs the insurance company to pay the beneficiary $335,000 on Walter’s death. Walter pays the annual premiums and has the power to designate the beneficiary of the policy (it is currently his son, James). What value of the policy, if any, will be included in Walter’s estate upon his death? Value of Policy:
True or False If false, provide a brief explanation of why 5. Property and Liability insurance company investments tend to be of longer duration than do life insurance company investments 6. Employment opportunities in the insurance industry are narrow and limited 7. The major assets of an insurance company are inventories of blank policy applications 8. If an insurance company is using facultative reinsurance, it must look for a reinsurer each time the company used reinsurance 9. A Property and...
Which of the following statements about life insurance policy loans is false?A) Loans are only permitted for specific reasons listed in the policy.B) Policy loans may be used to cover premiums using the automatic policy loan provision.C) The policyholder is required to pay interest on a life insurance policy loan.D) Any loan balance remaining at the time of the insured death is deducted from the life insurance proceeds paid to the beneficiary.
5. With respect to life insurance, the insurable interest must exist at some future time. O a. True O b. False 6. For property insurance, the insurable interest must exist at the time of the loss but need not exist when the policy is purchased. O a. True O b. False 7. When the parties to an insurance application agree that the policy will be issued and delivered at a later date, the contract is not effective until the policy...
The proceeds from a life insurance policy are taxable to the recipient unless the recipient is a surviving widow or widower. True or False
The Fed carries out monetary policy chiefly by influencing the demand for reserves schedule. a. True b. False
20) Which of the following statements about life insurance policy loans is (are) true? Interest is not required on a life insurance policy loan, as the policyholder is borrowing his or I. her own money. II. Policy loans must be repaid within 3 years or the policy will lapse. A) I only B) II only C) both I and II D) neither I nor II o annuities?.
1. The annual worth of a perpetual project is called its capitalized worth. True or False? 2. Different-life alternatives can be compared by the present worth method based on equal service, if you calculate the annual worth of each alternative over its life cycle and then multiply the resulting A value by the P/A factor for their LCM. True or False? 3. The equivalent annual worth of unequal-life alternatives can be determined by first calculating their present worth for one...
Suppose a life insurance company sells a $180,000 one-year term life insurance policy to a 20-year-old female for $220. The probability that the female survives the year is 0.999594. Compute and interpret the expected value of this policy to the insurance company. The expected value is $ .