True or False? 1. An insurance contract is derecognized when it is extinguished and when it is modified where the modification meets any of the conditions for derecognition. 2. The occurence of the event must be certain at the inception of the insurance contract.
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: When a life insurance policy lapses, it: a. benefits the insured b. benefits neither the insurer nor…
A: When insured person fails to pay the premium on insurance than it is said that policy has lapsed and…
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: Life insurance premiums shall be reported as a deductible expense for financial reporting purposes…
A: The outlay which is an ordinary outlay and helps in the normal revenue generation of the business is…
Q: In what circumstance would a property insurance claim be rejected?
A: An insurance claim is a written request for coverage or compensation from an insurance company for a…
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: Choose the best answer. 1.Which statement is TRUE about an insurance contract? * a.The insurer is…
A: IFRS: The full form of IFRS is international financial reporting standards. For the preparation of…
Q: 1. S1: Maker Co, a manufacture and dealer of household appliances, agrees to indemnify a customer of…
A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: xplicitly identified in the contract, it means that: a. the identified asset is never mentioned in…
A: When the asset is implicitly identified, this means asset is implied but is not directly expressed.…
Q: Which of the following sections of a commercial general liability policy contains information about…
A: Commercial General Liability (CGL) policy: You can safeguard your firm from financial ruin with a…
Q: The consideration received from a contract with a customer that does not meet the criteria unde…
A: The objective of Philippines financial reporting standard 15 (PFRS 15) is the establishment of…
Q: Who may institute action for annulment of voidable contracts? Briefly discuss.
A: Contract Act- The Indian Contract Act of 1872 lays out the groundwork for forming a legally binding…
Q: If the insured outlived the life insurance policy, the proceeds shall be taxable to the beneficiary…
A: If the insured outlived the life insurance policy, he/she will get his/her premium back, this…
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: A court will not enforce a cotnract if the contract requires an action that is egregious, even if…
A: Egregious contracts mean those contracts which are severely one-sided and unfair to the other party…
Q: f the renewal of the policy was at the discretion of the insurer, would you expect the premiums to…
A: Insurance renewal means that the coverage on insurance continues to exist after expiration of the…
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 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: If an insured fails to pay the premium when due, the insured's heallh policy will remain in force…
A: Health insurance is a type of insurance that helps to pays for medical costs incurred as a result of…
Q: An implied condition of pooling risks with insurance is that the event being insured against is…
A: Insurance: An arrangement between the two parties( Insurer & Insured) where the insurer company…
Q: 2. When two or more policies cover the same loss, the right of the one insurer to call upon the…
A: The following are some of the Principles of Insurance Principle of Contribution Principle…
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: It refers to the right of mortgagor to redeem the mortgaged property after his default of the…
A: The question is related to the choose the correct option for the given statement. Redemption means…
Q: Insuring clause in an Accident & Health policy states which of the following information? A. The…
A: There are different clause in the insurance policy that what is covered and what is not covered and…
Q: Company
A: Insurance is defined as a financial arrangement between the insured & the insurance company…
Q: __ is a contract that involves compensation for specific potential future losses in exchange for…
A: Step 1 Currency swap forward contracts are frequently used by companies with international market…
Q: Under which of the following circumstance a contract does not exist a- The contract was not…
A: In order to make an agreement valid contract, the following conditions need to be fulfilled: There…
Q: Either party can choose to the contract in cases where both partiess to a contract are mistaken…
A: Mutual Mistakes is the result of an error by both parties about a material fact, i.e., one that is…
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: 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: 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: Which of the following sections of a commercial general liability policy contains information about…
A: Insurance is the process through which an individual or corporation is provided financial coverage…
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: In Property and Casualty insurance when must an Insurable interest exist? O a. At the Start of the…
A: Life insurance covers the risk of life of insured. Non-life insurance may cover people, property or…
Q: The Claims Made Policy Form will pay for looses that occur at which of the following times? After…
A: Claim made policy is referred to as an insurance policy, which helps in providing the coverage at…
Q: The proper remedy for the following cases is reformation of the instrument, except for one. Which is…
A: Reformation can be defined as the remedy by means of which a written instrument is rectified or…
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: Which of the following is not one of the groupings of insurance contracts under PFRS 17? those that…
A: PFRS is accounting standard or approach related to insurance contracts. It means how an insurance…
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: When a contingent liability exists, the likelihood for loss can be evaluated as probable, reasonably…
A: A contingent liability is the possible obligation which will only be confirmed by future event which…
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 Ike following statements is CORRECT about he Missialement of Age provision in a health…
A: The misstatement of age clause is the provision under the life insurance policy that clears the…
Q: A covered person obtained an fixed return life insurance policy with an SEC restricted entity before…
A: Life Insurance policy A contract is agreed between the policyholder and the insurance company in…
True or False?
1. An insurance contract is derecognized when it is extinguished and when it is modified where the modification meets any of the conditions for derecognition.
2. The occurence of the event must be certain at the inception of the insurance contract.
Step by step
Solved in 3 steps
- 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 aboveDoes the rule rendering an insurance contract voidable as a result of concealment apply with equal force to all types of property insurance?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 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 insuranceWhich of the following is NOT true about a temporary insurance agreement? Select one: a. It can only cover life insurance and living benefits b. It expires the date the policy becomes effective c. The applicant will submit the premium with the application d. It can be provided if the agent believes the policy will be issuedIf an insured fails to pay the premium when due, the insured's heallh policy will remain in force for a specified period of lime under which of lhe following provisions? A.Grace Period B.Waiver of Premium C.Guaranteed Insurability D.Entire Contract
- Which of the following is not a requirement of a "qualified" long-term care insurance policy? The benefit of the policy must offer inflation protection. The contract must offer to cover pre-existing conditions. The contract must be guaranteed renewable. The contract must offer to pay a nonforfeiture benefit.2) Explain why offer and acceptance is essential to the formation of a binding insurance contract?Which of the following is not one of the groupings of insurance contracts under PFRS 17?A. those that are not onerous at initial recognition but can become onerous in subsequent periodsB. those that pay premiums at initial recognition which are to be measured using the simplified approachC. those that are onerous at initial recognitionD. those that, at initial recognition, have no significant possibility of becoming onerous in subsequent periods
- Indicate whether the statement is true or false, and justify your answer.The main advantage of a Cochrane insurance contract over a guaranteed renewable contract is that it does not rely on a legally unenforceable binding lifetime commitment.What is the consideration for the insurer in an insurance contract? 1.Premiums Paid 2.Risk Avoidance 3.The literal piece of paper the contract is written on is the consideration 4.An Insurance Contract does not require considerationExplain the difference between commutative contract and non-commutative contract. Why Insurance is Non-Sharia compliant?