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: Deposit Insurance a. depositor indifference generates a moral hazard problem that encourages banks…

A: About insurance which one is incorrect? A contract that is denoted by a policy is known as an…

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: 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: 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: lenders charge higher interest rates

A: In case of default in loan payments, lender has to incur huge time and expenses for taking action…

Q: True or false: An example of a soft inquiry would be a credit card company looking into your credit…

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: 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: Competition can be depended on to keep insurance rates from being excessive, and good management…

A: Insurance rates are the prices charged by the insurance for a specific unit of risk exposure. In the…

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: How do sellers benefit from allowing their customers to use credit cards? Do sellers bear any risk…

A: Credit cards A card distributed by the bank to its customers who have good financial records is…

Q: When an insurer accepts accepts risk from a large number of enrollees. OA. the average loss that…

A: The law of large numbers, which states that a large number of trials would lead to the average…

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: What is the importance of insurance companies?

A: Insurance firms are financial middlemen that provide direct insurance or reinsurance services,…

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: 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: How can bankers be spotting potential fraud among the loan granted

A: Bank loan means the loan given by the bank to the borrower. This loan can be provided for short term…

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: Revolving lines of credit generally do not involve the use of credit cards and often offer borrowers…

A: Overdraft protection is linked to your checking account in case you overdraw your account. It draws…

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: Suppose health-care reform Y makes it unlawful for insurance companies to deny insurance to persons…

A: In finance when health care related policies are implemented then a cost benefit analysis is done by…

Q: true or false: 21) The indivisible reserve of savings and credit cooperatives is NOT covered by…

A: COSSEC is the regulatory authority for credit and savings cooperatives. The main area of…

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…

Q: In insurance, all of the following loses are an example of pure risk EXCEPT: a. Injury to a…

A: Pure Risk: A risk is considered to be "pure" when it is beyond human control, either ends in a loss…

Q: Uninsured motorists face the burden of paying for accidents themselves if involved in an accident.…

A: Insurance is a way through which an individual can reduce the burden of financial loss by insuring…

Q: 2) To reduce moral hazard problems, banks include restrictive covenants in loan contracts. In order…

A: To address the moral hazard problems associated with lending, banks often include restrictive…

Q: In most lending organisations, credit losses occur due to lack of credit risk monitoring. You’re…

A: Credit risk is referred as the possibility of the loss, which used to result in the failure of the…

Q: Banks may deny creditworthy borrowers loan requests if a. they are non-corporate entities b. they…

A: Loan is the money that an entity or an individual can borrow or raise from a bank or any other…

Q: If there is a small probability of a risk occurring, a business may choose to assume the risk rather…

A: Risk management is the process through which companies detect, analyse, and address risks that may…

Q: vi) The risk that a pregnancy will result in multiple births (twins, triplets, etc.) incurring…

A: Insurable risk:The possibility of loss or damage that can be measured and transferred to an…

Q: Your business may be at risk if: Select one: a. All of these b. An important contract does not…

A: Risk is a condition or circumstance where it can hamper the business of the company or may give an…

Q: Suppose Mylan could write an insurance contract whereby it is insured against all penalties…

A: Loss contingencies refer to potential losses that may occur in the future, arising from past events…

Q: How can moral hazard lead to more costly insurance premiums than one was expected?

A: Definition : Moral hazard : The risk of a person not entering into an agreement in good conscience…

Q: Which one of the following types of casualty insurance policy would a bank purchase if it wants to…

A: Casualty insurance is a type of insurance that provides coverage against losses or damages that may…

Q: The _______________ problem is when customers who are most likely to have a claim against an…

A: In a business, an adverse selection occurs where the knowledge distribution between the buyer and…

Q: Insurance contracts are aleatory contracts, which is a "take it or leave it" contract. The insured…

A: Aleatory contract- Insurance contracts are  aleatory contracts, meaning that the policy does not…