116352f7a500da4b46977a659c/pages/a54b822ae1345f43e0e4c9ff519851bf2733a4364?returnurl=https%3A%2F%2Fconsole.pearson.com| McGraw Hill F FreshBooksContentmicrosoft M Gmail ► YouTubeApplication QuestionsSummary: Insurance Company OperationsQ SearchMapsup to1. Delta Insurance is a property insurer that entered into a surplus-share reinsurance treatywith Eversafe Re. Delta has a retention limit of $200,000 on any single building, andnine lines of insurance may be ceded to Eversafe Re. A building valued at $1,600,000 isinsured with Delta. Shortly after the policy was issued, a severe windstorm caused an$800,000 loss to the building.132a. How much of the loss will Delta pay?b. How much of the loss will Eversafe Rè pay?c. What is the maximum amount of insurance that Delta can write on a singlebuilding under the reinsurance agreement? Explain your answer.2. Liability Insurance Company writes a substantial amount of commercial liabilityinsurance. A large construction company requests $100 million of liability insurance tocover its business operations. Liability Insurance has a reinsurance contract with BermudaRe that enables the coverage to be written immediately. Under the terms of the contract,Liability Insurance pays 25 percent of the losses and retains 25 percent of the premium.Bermuda Repays 7575 percent of the losses and receives 75 percent of the premium, less aceding commission that is paid to Liability Insurance. Based on the preceding, answer thehpDun & Bradstreet -...=Bounceback Grant...2P Pearson Sign

Insurance is a contract between an individual or organization (the insured) and an insurance company…

Answered: Delta Insurance is a property insurer…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A building valued at $300,000 in insured for $150,000 and there is an 80% co- insurance clause on the policy. The building sustained loss to one area and caused $60,000 worth of damage. The insured would receive a settlement of: $50,000 $60,000 $45,500 $37,500
X Co. and Y Co. entered into a contract where the latter agreed that the sugar cane which it will produce shall be milled by the former for a period of 30 years. It was stipulated that in case of any fortuitous event, the contract shall be suspended during said period. For four years duringthe last war and for two years after liberation when the mill of X Co. was being rebuilt, Y Co. failed to deliver its sugar cane to the central of X Co. After the expiration of the 30-yearperiod, Y Co. stopped the delivery of its sugarcane to the central of X Co. Subsequently, X Co. brought an action against Y Co. in order to compel the latter to deliver Sugarcane for six additional years on the ground that the fortuitous event had the effect of stopping the runningthe term or period agreed upon. Will the action prosper? Reasons
IMA Manufacturing has just purchased a difference in conditions (DIC) policy with a $5 million general limit with a $50,000 deductible. The company's earthquake coverage has a $2 million limit with a $100,000 deductible and a 10 percent participation by the insured in all earthquake losses over the $100,000. If IMA suffers a $1 million earthquake loss, which one of the following is true of the coverage provided? $0 is provided by earthquake coverage; $950,000 is provided by DIC coverage $50,000 is provided by earthquake coverage; $950,000 is provided by DIC coverage $810,000 is provided by earthquake coverage; $0 is provided by DIC coverage $810,000 is provided by earthquake coverage; $190,000 is provided by DIC coverage
sa
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To raise operating funds, North American Courier Corporation sold its building on January 1, 2021, to an insurance company for $508,000 and immediately leased the building back. The lease is for a 10-year period ending December 31, 2030, at which time ownership of the building will revert to North American Courier. The building has a carrying amount of $470,000 (original cost $1,140,000). The lease requires North American to make payments of $89,908 to the insurance company each December 31. The building had a total original useful life of 30 years with no residual value and is being depreciated on a straight-line basis. The lease has an implicit rate of 12%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required:1. Prepare the appropriate entries for North American (a) on January 1, 2021, to record the transaction and (b) on December 31, 2021, to record necessary adjustments.2. Show how North American’s…
All Insure issued a policy for $10 Million Auto liability. The underwriter, following company underwriting guidelines to retain only $5 Million liability risk, placed a facultative excess of loss reinsurance contract for $5 million with ReinsureRE. The insured caused a pile-up car/truck collision with total loss amount of $8 Million in loss payments. How much of the $8 Million will be covered by the excess of loss contract?
(a) In accordance with HKFS 16, it requires lessee to recognize a right-of-use asset and a lease liability for all leases. Therefore, Cherry Ltd should recognize the initial measurement of a right-of-use asset and a lease liability as follows: Discount rate Unpaid lease payment -2nd - 5th payment $800,000 x 3.17 Initial measurement of a lease liability Initial measurement of lease liability Lease payment made at commencement date Initial direct cost – commission Initial direct cost – legal fee Initial measurement of a right-of-use asset (b) The lease liability from 2013 to 2017 are as follows: PV 10% 3.17 2,536,000 2,536,000 2,536,000 800,000 20,000 15,000 3,371,000 Lease liability Year Opening balance Lease Lease liability payment after lease Interest expenses 10% Closing balance 1 Jan (a) (b) payment (c) = (a) - (b) 31 Dec (d) = (c) x 10% |(e) = (c) +(d) 2013 2,536,000 2,536,000 253,600 2,789,600 2014 2,789,600 800,000 1,989,600 198,960 2,188,560 2015 2,188,560 800,000 1,388,560…
Delta Insurance is a property insurer that entered into a surplus-share reinsurance treaty with Eversafe Re. Delta has a retention limit of $200,000 on any single building, and up to nine lines of insurance may be ceded to Eversafe Re. A building valued at $1,600,000 is insured with Delta. Shortly after the policy was issued, a severe windstorm caused an $800,000 loss to the building. a. How much of the loss will Delta pay? b. How much of the loss will Eversafe Re pay? c. What is the maximum amount of insurance that Delta can write on a single building under the reinsurance agreement? Explain your answer.
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1. Clavel County leases an office building with a remaining economic life of 20 years. The fair market value of the building is $6 million. Annual lease payments are agreed at $523,107, based on a 6 percent interest rate. The lease meets the conditions for a capital lease.Record the lease and the first year’s interest payment (a) In a governmental fund (b) In the government-wide statements 2. Should the office building be depreciated? If so, how and where should depreciation be recorded? 3. Suppose the lease did not meet the conditions for a capital lease. How and where should the lease be recorded? Should the office building be depreciated? If so, how and where should depreciation be reported?
While on vacation in the U.S.A. your insured's Cadillac is damaged in an accident with a Georgia registered automobile, insured for minimum limits of $15,000/$30,000 Bodily Injury, and $10,000 Property Damage Liability. The Georgia driver is 100% liable for $20,000 damage to your insured's automobile. Your insured has an O.A.P. 1 Owner's Policy including Direct Compensation- Property Damage with standard deductible, OPCF 44R-Family Protection Coverage but no Collision insurance. How would the claim be paid? OA) $19,500 under the insured's Direct Compensation-Property Damage coverage. OB) Nothing under the OPCF 44R and $10,000 under the Georgia policy. OC) $10,000 under the OPCF 44R and $9,500 under Direct Compensation-Property Damage coverage. OD) $1000 under the OPCF 44R and $10,000 under the Georgia policy.

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