The chief effect of reinsurance is that  - insurance premiums are higher  - insurance companies are prevented from engaging in fraud  - insurance companies can offer insurance without fear of a major event causing them to go out of business

Q: Do some states allow creditors to engage in deception with the debtor to obtain the collateral if…

A: The term "creditors" refers to individuals or entities to whom money is owed by a debtor (the person…

Q: The Sarbanes-Oxley Act was a market response to accounting fraud, and the Dodd-Frank act was a…

A: The Above Statement "The Sarbanes-Oxley Act was a market response to accounting fraud, and the…

Q: For purposes of Graham, Leach Bliley, financial institutions can include banks and insurance…

A: Gramm Leach Bliley Act states that all financial institutions should disclose all the information to…

Q: Key Person insurance is most commonly utilized by very large companies. True False

A: In this question, we are required to determine whether the statement is true or false.

Q: Business damages, as a result of financial fraud, directly impact the operations of any company.…

A: Fraud is an intentional act which is committed in order to defraud a group of people for the purpose…

Q: Gambling is most of the time confused as Insurance . Use practical example to show the difference…

A: Personal finance is referred as the term which manages the money, saving and investments of an…

Q: A life insurance company worries that people with low risk of dying will not buy insurance because…

A: The insurance company will generally end up losing a lot of money. If an insurance company takes an…

Q: As a result of the recent mortgage crisis, many banks reported record losses to their mortgage…

A: 1.

Q: Which of the following statements is incorrect? A bank providing a loan to the entity is not a…

A: D) An entity needs to disclose if it has a common director with another entity because there might…

Q: Companies invest in short term investments for safekeeping purposes. Right O Wrong

A: Short-term investments, otherwise called marketable securities or transitory ventures, are those…

Q: business

A: Company will windup at the end when borrowing are excessive and at that time all the assets and…

Q: Overdraft checks are insufficiently funded. True False There is a guarantee of higher interest…

A: Following is the correct answer

Q: Unsecured creditors: have rights to be paid amounts owed, but the rights may have to be enforced…

A: Correct option is 1. i.e unsecured creditors have rights to be paid amounts owed, but the rights may…

Q: Risk Management in Accounting: ABC Insurance Company is evaluating its financial risks. Discuss the…

A: Financial risk is the possibility of loss or a negative influence on an individual's, company's, or…

Q: balance-sheet mismatch that financial intermediaries

A: Financial intermediaries as the name suggest are the middlemen between two parties engaged in a…

Q: A bank owes an implied duty to its customers not to divulge information about its customers to third…

A: The duty of confidentiality is used to oblige the solicitor with regard to the confidentiality of a…

Q: S1: It is more advantageous and beneficial to the insured if there are more riders included in the…

A: Rider in insurance industry is an additional benefit given to the insured for the enhancement of…

Q: If the chance that a risk will occur cannot be reasonably predicted or the possible financial loss…

A: An uninsurable risk is one that presents an unknown or unacceptable risk of loss for an insurance…

Q: Companies of all sizes try to reduce business risks, create disaster recovery plans, and also…

A: Business risk Business risk is the risk of lowering the profits of a company. Any factor that…

Q: Why do you think a speeding ticket or DUI would increase your insurance rate? O The insurance…

A: Insurance is a financial product that provides protection against potential financial losses.…

Q: why a company would prefer to hedge over taking an insurance to minimize on risk

A: Company faces many kinds of risks during the operating of the company so company has to manage all…

Q: The greater the account's liquidity, the less susceptible the account is to fraud. * True O False

A: Liquid assets involve assets that are more easily convertible into cash.

Q: Who are the target customer of insurance companies?

A: Future events are uncertain and unavoidable, due to which risk arises. There are various methods to…

Q: MATCH WITH THE  BEST ANSWER Liability Insurance Mistakes happen. You, your employees, your…

A: Insurance: It is an agreement between two parties where a party undertakes to cover the other party…

Q: Business damages, as a result of financial fraud, directly impact the operations of any company.…

A: Fraud includes activities such as theft, corruption, conspiracy, bribery etc. Fraud can occur in any…

Q: A risk group căn be đefined as a group that shares ghly the same risks of an adverse event…

A: Risk is something which is bear by insurance company in consideration of premium that they have…

Q: IDENTIFICATION: What area of insurance companies is faced with the risk that estimates of loss…

A: Insurance risk management is referred as an assessment as well as quantification of the financial…

Q: What is the relationship between risk management and insurance buying and why do some argue that…

A: The question is based on the concept of risk management and the use of insurance as a tool of risk…

Q: Moral hazard is mostly a problem in countries with universal insurance programs like the United…

A: Moral hazard is a an example of risk which arises when one of the parties involved in a contract…

Q: None

A: The most appropriate action to take to maintain the original integrity of the loan is to: Ensure…

Q: Accounting fraud is the intentional manipulation of financial statements to create a false…

A: Meaning of Accounting Fraud: Accounting fraud refers to intentional manipulation of financial…

Q: What are the main parts of an insurance contract and what are they designed to accomplish? How are…

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

Q: I need help with question solution

A: Step 1: Introduction to the Accounting Equation:An accounting equation serves as a basis for…

Q: 3. Why is it important for insurance companies to have a large pool of people paying premiums?

A:

Q: Consumer credit laws have been implemented over the years to protect consumers against creditor…

A: The objective of the question is to identify the correct consumer credit law that governs the…

Q: What is the consideration for the insurer in an insurance contract?

A: Contract:   Contract is an agreement among two parties or more parties which includes enforceable…

Q: For insurance companies risk management is critical to the success and viability of their business.…

A: An underwriter's risk of loss is known as underwriting risk. Underwriting risk in insurance can…

Q: Safety regulations are superior when an Injurer can escape paying damages by filing bankruptcy. True…

A: Bankruptcy Bankruptcy refers to the legal process where people who become insolvent or are not able…

Q: The policy that requires regulator intervention when bank capital falls too low is _____, and it was…

A: In this question, we are required to fill in the blanks.

Q: e importance of establishing an effective risk management policy at insurance companies to manage…

A: Introduction : In simple words, risk management refers to the phenomenon under which a company…

Q: So-called "payday loans" are targeted primarily at "poor people" O True O False QUESTION 43 Term…

A: Pay-day loans are short-term loans that allow the person to borrow until the next payday. The…

Q: Securitization of loans (mortgages) does not bring any benefits to a Commercial Banks balance sheet.…

A: Securitization is a process by which a bank sells of their poor/unrecoverable assets are sold to the…

Q: what is one example of a risk management strategy used by insurance companies to mitigate…

A: An underwriter's potential loss is known as underwriting risk. Underwriting risk in insurance can…