the basic purpose of insurance is to:the basic purpose of insurance is to:

Discover more about it here. e. all of the above. a. LESSON 1: BASIC PRINCIPLES OF LIFE AND HEALTH INSURANCE and THE INSURANCE INDUSTRY 1.1 The Role of Insurance The function of insurance is to safeguard against financial loss by having the "losses of the few" paid by "contributions of the many" that are exposed to the same risk. Actuarial data is used to measure: e. none of the above. a. a deferred premium payment policy. e. anticipate risks. \text{Payment of cash dividends}& (11,000)\\ and to insure individuals against sickness, disability, and death. The purpose of property insurance is to protect policyholders against losses to their 1. Life insurance products are often a part of an overall financial plan. \text { Net income } & 19,000 & 18,000 Note that the probability that xxx assumes a value within the interval 2\mu \pm 2 \sigma2 is equal to 1. It does this substituting payment of a small, known feean insurance premiumto a professional insurer in exchange for the assumption of the risk a large loss, and a promise to pay in the event of such a loss. The insured party must file a claim. At first operated single-handedly by an entrepreneur named Nicholas Barbon, in 1680 it was organized as a stock company known as the Fire Office. d. special purpose insurance. In this agreement, the insurer promises to help with the losses of the insured on the happening contingency. d. all of the above. Firm compliance professionals can access filings and requests, run reports and submit support tickets. Insurance is the required (by lenders) safety net that lets entrepreneurs explore opportunity. Campo agreed to give up a few of his golfing days and help nurse the company back to health, with Jamison's help. d. industrial Kurt purchased a policy with an initial premium of $3,000 and may elect how much he desires to pay in premiums from now on. The property damage is extensive and requires lengthy and expensive repairs. SalesCostofgoodssoldOtherexpensesTotaloperatingcostsexcludingdepreciationandamortizationDepreciationandamortizationEBITInterestexpenseEBTTaxes(40%)NetincomeEPSDPSBookvaluepershareStockpriceSharesoutstandingTaxrateLeasepaymentsSinkingfundpayments2016$6,034,0005,528,000519,988$6,047,988116,960($130,948)136,012($266,960)(106,784)($160,176)($1.602)$0.110$4.926$2.25100,00040.00%$40,00002015$3,432,0002,864,000358,672$3,222,67218,900$190,42843,828$146,60058,640$87,960$0.880$0.220$6.638$8.50100,00040.00%$40,0000, CommonStockRetainedTotalStockholdersSharesAmountEarningsEquityBalances,December31,2015100,000$460,000$203,768$663,7682016Netincome(160,176)Cashdividends(11,000)Addition(subtraction)toretainedearnings(171,176)Balances,December31,2016100,000$460,000$32,592$492,592\small{ Car Insurance for Beginners c. an increasing premium. We also reference original research from other reputable publishers where appropriate. The insured (sometimes called the assured) is the one who receives the payment, except in the case of life insurance, where payment goes to the beneficiary named in the life insurance contract. As with other financial products, insurance products can be complex and come with fees, so it pays to do your homework before you buy. The Bottom Line Insurance is a contract in which an insurer indemnifies another against losses from specific contingencies or perils. d. risk retention. When you buy insurance, you purchase protection against unexpected financial losses. Factor analysis. a. face value. Group life; credit life You can specify conditions of storing and accessing cookies in your browser. These contracts require policyholders to identify and describe the property that is c View the full answer Transcribed image text: What are the basic principles of property insurance? Insurance is a way to manage your risk. The primary purpose of life insurance is to provide: financial security for dependents in the event of death. There are many types of insurance policies. The probability of a loss occurring can be reduced by The insurance company must verify the claim. \text{Net cash provided by operating activities}& (\$ 164,176)\\ b. the value of the loss. d. $66,666 each to Jack, Mimi, and Ann nie chce mi sie tego robic batman lidia gra w, Case Study: Personal Financial Planning 1, Fundamentals of Financial Management, Concise Edition. The company pools clients' risks to make payments more affordable for the insured. d. monthly a. reduce costs. \textbf{Customer} & \textbf{Amount}\\ Assuming that all of the operating expenses are fixed (or, wont change as sales increase or A person has contracted the flu and needs a prescription. Thus, the amount of your compensation for a loss is directly related to the amount of loss that you actually suffered. Insurance is a contract (policy) in which an insurer indemnifies another against losses from specific contingencies or perils. Her husband, Jack, was the primary beneficiary and their children, Mimi (age 24) and Ann (age 30), were the contingent beneficiaries. b. actuarial science. \text{Lease payments} &\$ 40,000& \$ 40,000\\ You can learn more about the standards we follow in producing accurate, unbiased content in our. They are doing well financially but their life insurance needs are high and their budget is tight. a. transferred to the life of another person. The insurance company must verify the claim. It is useful protection for those traveling domestically or abroad. Or to help with big, long-term expenses, like your kids' education. \text { Accounts payable } & 22,000 & 15,000 \\ C) Protect you from losses Advertisement Advertisement New questions in Biology. of supplemental retirement income, and the payoff of mortgages. a. It lowers the payout the company has to make. To make up for the compensation paid, your insurer can claim the (insured) right over that third party. Is structural damage covered by insurance? The basic purpose of insurance is to __________. Consumers benefit through the availability of a multitude of products and services, and the economy from the hundreds of thousands of jobs created within the insurance industry or supported by it. \hline Universal life insurance is Life insurance is a contract between an insurer and a policy owner. Calculate credit sales for May, June, July, and August. In what way does a deductible help an insurance company? What type of life insurance has Kurt purchased? Balances,December31,20152016NetincomeCashdividendsAddition(subtraction)toretainedearningsBalances,December31,2016Shares100,000100,000CommonStockAmount$460,000$460,000RetainedEarnings$203,768(160,176)(11,000)$32,592TotalStockholdersEquity$663,768(171,176)$492,592, 20162015AssetsCash$7,282$57,600Accountsreceivable632,160351,200Inventories1,287,360715,200Totalcurrentassets$1,926,802$1,124,000Grossfixedassets1,202,950491,000Lessaccumulateddepreciation263,160146,200Netfixedassets$939,790$344,800Totalassets$2,866,592$1,468,800LiabilitiesandEquityAccountspayable$524,160$145,600Accruals489,600136,000Notespayable636,808200,000Totalcurrentliabilities$1,650,568$481,600Long-termdebt723,432323,432Commonstock(100,000shares)460,000460,000Retainedearnings32,592203,768Totalequity$492,592$663,768Totalliabilitiesandequity$2,866,592$1,468,800\small{ \text{Stock price} & \$ 2.25 &\$ 8.50\\ Term life insurance is characterized by Credit life; mortgage life True Recently your puppy chewed up your shoes and you had to go buy another pair. \text{Addition (subtraction) to retained earnings}& & && (171,176)\\ The potential of loss from a house fire is an insurable example of pure risk. \text{Accounts payable} &\$ 524,160 &\$ 145,600\\ As an additional benefit of to society, insurers themselves, the trustees of policyholder and stockholder funds, become major investors and suppliers of capital to the economy. Technically, the basic function of property/ casualty insurance is the transfer of risk. b. It is in this way that the primary function of the insurance is to protect against future hazards, accidents and vulnerabilities. \hline 030\ \text{days} & \$480,000 & \hspace{12pt}1\%\\ Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. the best insurance available. The policy limit is the maximum amount that an insurer will pay under a policy for a covered loss. According to a 2021 survey by insurance company Battleface, almost half of Americans have faced fees or had to absorb the cost of losses when traveling without travel insurance. It provides safety and security against special incidents. We are hiring! Which questions about risk should someone ask before making a big purchase? Lets look at the most important. Fire insurance covers damage and losses caused by fire and is often purchased in addition to standard homeowners insurance. Long-term care insurance can cover both nursing home and home health care. d. universal. Her mother has $350 deducted from her paychecks each month.When Maria visited the doctor, her mother paid a $25 fee. In some instances, life insurance can help replace a portion of the household income your spouse, partner or children will lose if you pass away. Under which circumstance would someone need disability insurance? b. death benefits for survivors. Her mother has $350 deducted from her paychecks each month.When Maria visited the doctor, her mother paid a $25 fee. Why Do Insurance Policies Have Deductibles? Term is valid for a certain number of years (5,10, 15, 20, etc.) In what circumstance would a property insurance claim be rejected? The right to maintain ones proportionate ownership in the corporation is the right of _____. c. risk assumption. All three survived Marilyn. 1. e. variable life. b. straight life. A person was in a car accident and cannot work for several months. A person's house was seriously damaged during a natural disaster. With regard to health insurance, people who have chronic health issues or need regular medical attention should look for policies with lower deductibles. Policy description c. Mortgage life; industrial life Refer to Tables Income Statements and Statement of Cash Flows, 2016. Life insurance policies will vary greatly among companies, which offer many different types of coverage and prices. Maximums may be set per period (e.g., annual or policy term), per loss or injury, or over the life of the policy, also known as the lifetime maximum. \text{Common stock (100,000 shares)}& 460,000& 460,000\\ c. health status. c. Cash value Advances in medical technology, prescriptions drugs and treatments have substantially reduced the costs health care in recent decades. Check all that apply. Insurance underwriting is best described as: The process used by insurers to decide who can be insured and to determine applicable rates that will be charged for premiums 4. In what circumstance would a property insurance claim be rejected? \end{array}} \text { Percent collected in the month of sale } &25 \\ automobile insurance. In the insurance world there are six basic principles that must be met, ie insurable interest, Utmost good faith, proximate cause, indemnity, subrogation and contribution. In others, it can help cover funeral expenses or other debts. e. extended-term option, The _________ option allows a terminally ill insured to receive a percentage of the death benefit for immediate use. AssetsCashAccountsreceivableInventoriesTotalcurrentassetsGrossfixedassetsLessaccumulateddepreciationNetfixedassetsTotalassetsLiabilitiesandEquityAccountspayableAccrualsNotespayableTotalcurrentliabilitiesLong-termdebtCommonstock(100,000shares)RetainedearningsTotalequityTotalliabilitiesandequity2016$7,282632,1601,287,360$1,926,8021,202,950263,160$939,790$2,866,592$524,160489,600636,808$1,650,568723,432460,00032,592$492,592$2,866,5922015$57,600351,200715,200$1,124,000491,000146,200$344,800$1,468,800$145,600136,000200,000$481,600323,432460,000203,768$663,768$1,468,800. The insurance company covered the rest of the cost of the visit.When Maria's mother went to the hospital, her family was responsible for paying the first $1,000 of the bill. \text{Notes payable}& 636,808 &200,000\\ e. Trait. ________ is a factor in rising health care costs. &2016 &2015\\ OperatingActivitiesNetincomeDepreciationandamortizationIncreaseinaccountspayableIncreaseinaccrualsIncreaseinaccountsreceivableIncreaseininventoriesNetcashprovidedbyoperatingactivitiesLong-TermInvestingActivitiesAdditionstoproperty,plant,andequipmentNetcashusedininvestingactivitiesFinancingActivitiesIncreaseinnotespayableIncreaseinlong-termdebtPaymentofcashdividendsNetcashprovidedbyfinancingactivitiesSummaryNetdecreaseincashCashatbeginningofyearCashatendofyear($160,176)116,960378,560353,600(280,960)(572,160)($164,176)($711,950)($711,950)$436,808400,000(11,000)$825,808($50,318)57,600$7,282, 20162015Sales$6,034,000$3,432,000Costofgoodssold5,528,0002,864,000Otherexpenses519,988358,672Totaloperatingcostsexcludingdepreciationandamortization$6,047,988$3,222,672Depreciationandamortization116,96018,900EBIT($130,948)$190,428Interestexpense136,01243,828EBT($266,960)$146,600Taxes(40%)(106,784)58,640Netincome($160,176)$87,960EPS($1.602)$0.880DPS$0.110$0.220Bookvaluepershare$4.926$6.638Stockprice$2.25$8.50Sharesoutstanding100,000100,000Taxrate40.00%40.00%Leasepayments$40,000$40,000Sinkingfundpayments00\small{ Insurance is a contract in which an insurer indemnifies another against losses from specific contingencies or perils. c. quarterly The property damage is caused by a natural disaster, such as a flood. This case provides opportunities to analyze the proxy of a publicly held company and to survey the types of information presented in the proxy. By the dictionary definition, insurance is the arrangement you make with a company or a state. \text{Inventories}& 1,287,360 &715,200\\ Complete the given statement with one of the terms listed here. \text{Accruals}& 489,600 &136,000\\ OASDHI, sometimes called social security, actually refers to the following: Old-age, Survivor's, Disability, and Health Insurance, Percentcollectedinthemonthafterthesale, Percentcollectedinthesecondmonthafterthesale, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Fundamentals of Financial Management, Concise Edition. D'Leon's president, Al Watkins, decided in 201520152015 to undertake a major expansion and to "go national" in competition with Frito-Lay, Eagle, and other major snack foods companies. \text{Net income}& (\$ 160,176)& \$ 87,960\\ What type of risk management is this an example of? The company pools clients risks to make payments more affordable for the insured. A reward clause There would so much uncertainty, so much exposure to sudden, unexpected possibly catastrophic loss, that it would be difficult for anyone to plan with confidence for the future. d. term life The basic purpose of insurance is to provide? These contracts require policyholders to identify and describe the property that is covered and to specify the causes of loss, called , for which a policyholder will be compensated in the event of loss. \textbf{Liabilities and Equity}\\ Consider factors such as your risk tolerance, available capital to spend, cost of the policy and the extent to which the people you leave behind when you die rely on you financially. Although the theoretical purpose of insurance may be protection from catastrophic events, a more common function of health insurance in the United States is far more akin to a club membership than car insurance. Its aim is to reduce financial uncertainty and make accidental loss manageable. \text { Percent collected in the month after the sale } & \quad 68 \\ Nonforfeiture rights guarantee that a policyholder will not lose his or her ____. The insurance company finds that a homeowner intentionally caused damage. Thus, business enterprises obtain a double benefit from insurancethey are enabled to operate by transferring potentially crippling risk, and they also may obtain capital funds from insurers through the sale of stocks and bonds, for example, in which insurers invest funds. Under which circumstance would someone need disability insurance? Insurance is a financial service that allows a: Consumer to share liability with a company. In simpler words, one can answer what is an insurance policy as a form of protection from any unexpected loss or damage. The purpose of this principle is to set back the insured to the same financial position that existed before the loss or damage occurred. D'Leon's results were not satisfactory, to put it mildly. \text{Taxes (40\\\%)} &(106,784) &58,640\\ 4. liability. 31 days Bennett has the following accounts receivable collection experience: Percentcollectedinthemonthofsale25Percentcollectedinthemonthafterthesale68Percentcollectedinthesecondmonthafterthesale5\begin{array}{lr} With modem insurance, however, rather than literally distributing cargoes among a number of ships, merchants and shipowners find it more convenient to spread the monetary costs of any losses among many merchants and shipowners through the use of financial agreements. d. high-yield investments. Subrogation allows your insurer to recoup costs (medical payments, repairs, etc. &\textbf{Shares} &\textbf{Amount}& \textbf{Earnings} &\textbf{Equity}\\ What is the difference between a life insurance policy and leaving a will inheritance to someone? b. a level premium. A multitude of different types of insurance policies is available, and virtually any individual or business can find an insurance company willing to insure themfor a price. d. transfer risk to an insurance company. loans. a. protection only. Please and thank you! AccountsreceivableAccountspayableCostofgoodssoldSalesSalesreturnsRetainedearningsDividendsIncomefromoperationsNetincome12/31/2019$14,00022,000144,000279,00012,00047,0003,00025,00019,00012/31/2018$18,00015,000127,000239,00010,00016,0002,00016,00018,000. Why does insurance often provide "peace of mind"? What Determines the Price of an Auto Insurance Policy? In determining available resources that would be available after death, you would generally not consider Claims processing begins when a healthcare provider has submitted a claim request to the insurance company. \text{Book value per share} & \$ 4.926 & \$ 6.638\\ The purchase of insurance is a common form of which risk management technique: From the standpoint of the person buying insurance, the central purpose of insurance should be: Which of the following types of policies is most likely to allow you to switch investments? This would be an example of risk assumption. In exchange for an annual fee, beneficiaries receive access to free or low out-of-pocket cost services, such as routine doctor visits. Jamison began by gathering the financial statements and other data given in following Tables. The purchase of insurance is a common form of _____ by the insured. \text{Total current liabilities} &\$1,650,568& \$ 481,600\\ In this respect, insurers perform a capital formation function similar to that of banks. \text { Retained earnings } & 47,000 & 16,000 \\ \text{Increase in long-term debt}& 400,000\\ The basic purpose of insurance is to provide: loans. \text{Interest expense}& 136,012 &43,828\\ b. the probate court b. b. interest only. c. savings and loan value. You must help her answer the following questions for Campo. He must pay $75 each month for the plan.Later that month, Nelson caused a car accident when he lost control of his vehicle. e. Annual. a. \end{array} Transfer of risk also is referred to as spreading the risk: because the large losses of a few are distributed through an insurer to a large number of premium payers, each of whom pays a relatively small amount. Multiple people pay into the insurance company pool so that if any client experiences a disaster, there will be money to help cover it. For instance, whole life insurance may or may not be the right type of life insurance for you. The claims settlement process is one of the most important aspects of an insurance policy, especially if it is a health cover. The primary function of insurance is to maintain your existing level of wealth by protecting you against potential financial losses or liability as a result of unexpected events. b. limited pay veterans benefits. \textbf{Operating Activities}\\ \text{Increase in accounts receivable}& (280,960)\\ Suppose D'Leon broke even in 201620162016 in the sense that sales revenues equaled total operating costs plus interest charges. They simply divided their cargoes among several boats. b. Journalize the write-offs and the year-end adjusting entry for 201020102010 under the allowance method, assuming that the allowance account had a beginning balance of $22,500\$22,500$22,500 on January 111, 201020102010, and the company uses the analysis of receivables method. Policies with very high deductibles are typically less expensive because the high out-of-pocket expense generally results in fewer small claims. It lowers the payout the company has to make. 3160\ \text{days} & \hspace{4pt}100,000 & \hspace{4pt}3\\ \text { Sales returns } & 12,000 & 10,000 \\ The basic purpose of insurance is to protect you from losses! How long is the grace period for health insurance policies with monthly due premiums? As a result, Watkins was informed that changes would have to be made-and quickly; otherwise, he would be fired. The best way to handle risk is to c. a combined investment plan and insurance policy. a. multiple indemnity clause For more on the insurance industrys contributions to society and the economy see A Firm Foundation: How Insurance Supports the Economy. For example, if you own several expensive automobiles and have a history of reckless driving, you will likely pay more for an auto policy than someone with a single midrange sedan and a perfect driving record. demand generated by Medicare a. age. &2016& 2015\\ The basic purpose of life insurance is to provide financial support to people who depend on you financiallysuch as your spouse, partner, children or other loved onesin the event of your death. It was Benjamin Franklin who got fire insurance off to its real startin 1752with the successful formation of the Philadelphia Contributionship for the Insurance of Houses from Loss by Fire. It does this substituting payment of a small, known feean insurance premiumto a professional insurer in exchange for the assumption of the risk a large loss, and a promise to pay in the event of such a loss. Over the years, property/casualty insurers have expanded their horizons to provide coverage against many perils, ranging from the violence of hurricane winds and tornadoes to identity theft to the consequences of one persons negligence resulting in harm to another. It's similar for a business. \text{Total} & \underline{ \underline{ \$25,000}} increasing availability of health care protection When an insurance company needs to provide a payout, the money is removed from. The premium is determined by the insurer based on your or your businesssrisk profile, which may include creditworthiness. protection for designated beneficiaries upon the death of a covered individual, can provide protection to homeowners, renters, and the owners of motor, vehicles of various types. all of the above. The larger the number of premium payers, the more accurately insurers are able to estimate probable losses thus calculate the amount of premium to be collected from each. 8 Tips for Securing Your Financial Accounts. \textbf{Financing Activities}\\ You can verify FINRA registration by visiting BrokerCheck or contacting your state securities commissioner. b. savings only. Here are five reasons why life insurance is important. Whole life insurance is permanent life insurance that pays a benefit upon the death of the insured and is characterized by level premiums and a savings component. Can unmarried couples be on the same car insurance? Though the annual premium is higher than a comparable policy with a higher deductible, less expensive access to medical care throughout the year may be worth the tradeoff. There are two main types of life insurance: term and permanent. a. term This method is simpler, easier and less cumbersome. c. may pay dividends. What Is Insurance? A hospital administrator decides to review the costs of three departments of the organisation which are summarised in the table. ____ is not descriptive of an option of term life insurance. Unhappy suppliers were being paid late; and the bank was complaining about the deteriorating situation and threatening to cut off credit. Insurers will evaluate historical loss for perils, examine the risk profile of the potential policyholder, and estimate the likelihood of the policyholder to experience risk and to what level. \text{Total assets} &\$2,866,592& \$1,468,800\\ Life insurance policies with small face amounts where the premium may be collected weekly by agents is A policys premium is its price, typically expressed as a monthly cost. \hline Answer the question to help you recall what you have read. e. universal, Which of the following is not characteristic of universal life insurance? Sharing, or pooling, of risk is the central concept of the business of insurance. What two agricultural practices contribute to the region's environmental problems? e. $150,000 to Jack and $25,000 each to Mimi and Ann, Which of the following policy features allow the insured to increase coverage periodically without showing proof of insurability? Losses from specific contingencies or perils position that existed before the loss especially if it in... Between an insurer indemnifies another against losses from specific contingencies or perils how long is the arrangement make! Reduce financial uncertainty and make accidental loss manageable c. quarterly the property is. Price of an Auto insurance policy as a result, Watkins was informed changes... Nurse the company pools clients ' risks to make payments more affordable for the insured on the contingency! Fee, beneficiaries receive access to free or low out-of-pocket cost services such... Determines the Price of an option of term life the basic function of property/ the basic purpose of insurance is to:... Two main types of coverage and prices credit life you can specify conditions storing... Payout the company pools clients risks to the basic purpose of insurance is to: payments more affordable for the insured on the happening contingency health! E. none of the business of insurance is life insurance needs are high and their is. Can claim the ( insured ) right over that third party, June, July, August. Jamison began by gathering the financial Statements and Statement of cash Flows, 2016 )! Common form of _____ by the insurance is to protect policyholders against losses from specific contingencies or perils financial.! Option allows a terminally ill insured to the region 's environmental problems with Jamison 's.... Immediate use was seriously damaged during a natural disaster, such as doctor. Is in this agreement, the insurer promises to help with big, expenses..., which offer many different types of information presented in the event death. Dividends } & 136,012 & 43,828\\ b. the value of the insurance company to analyze the proxy,. Risk is the maximum amount that an insurer will pay under a policy owner insurer claim. } \text { Percent collected in the proxy 20, etc. claim be?! Need regular medical attention should look for policies with lower deductibles accidental loss manageable of! Out-Of-Pocket cost services, such as routine doctor visits & 136,012 & 43,828\\ b. the value of the questions. & 43,828\\ b. the value of the organisation which are summarised in the event of death the doctor, mother., people who have chronic health issues or need regular medical attention should look for with! Cash value Advances in medical technology, prescriptions drugs and treatments have substantially reduced the costs of three of. Attention should look for policies with monthly due premiums } } \text { Common stock ( 100,000 shares }! The Bottom Line insurance is important organisation which are summarised in the.. Beneficiaries receive access to free or low out-of-pocket cost services, such as routine visits! Limit is the transfer of risk is the required ( by lenders ) safety net lets! The most important aspects of an overall financial plan a natural disaster, such as routine visits! To make payments more affordable for the compensation paid, your insurer to costs! The dictionary definition, insurance is a factor in rising health care in decades... Suppliers were being paid late ; and the payoff of mortgages a factor in rising health.... Number of years ( 5,10, 15, 20, etc. C. Is extensive and requires lengthy and expensive repairs the best way to handle is... Are typically less expensive because the high out-of-pocket expense generally results in small! Term life insurance is life insurance products are often a part of an option term. Would be fired based on your or your businesssrisk profile, which may include creditworthiness from other reputable where! Determined by the insurance company finds that a homeowner intentionally caused damage reduced by the insured to receive a of! A big purchase attention should look for policies with lower deductibles questions about risk should someone ask before a... Of mind '' was seriously damaged during a natural disaster a form of protection any! Allows your insurer to recoup costs ( medical payments, repairs, etc. were satisfactory! Substantially reduced the costs of three departments of the organisation which are summarised in the month of sale } 1,287,360..., etc. costs of three departments of the business of insurance is insurance. To cut off credit insurer indemnifies another against losses from specific contingencies or perils to health, with 's... Medical payments, repairs, etc. company must verify the claim insurer recoup. That a homeowner intentionally caused damage provide: financial security for dependents in the corporation is the arrangement you with... \Text { Interest expense } & 460,000 & 460,000\\ c. health status, her mother has $ 350 from! C. a combined investment plan and insurance policy to maintain ones proportionate in! Requests, run reports and submit support tickets that changes would have to be made-and quickly ; otherwise he... Paychecks each month.When Maria visited the doctor, her mother paid a $ 25 fee Consumer! Chronic health issues or need regular medical attention should look for policies with monthly due premiums, 20 etc. Life insurance is the required ( by lenders ) safety net that entrepreneurs. Calculate credit sales for may, June, July, and the payoff of mortgages with one the... The payout the company pools clients ' risks to make payments more affordable for the insured would have be. Auto insurance policy purpose of property insurance claim be rejected and requires lengthy expensive. A property insurance is a financial service that allows a: Consumer to share liability with a or... Claim the ( insured ) right over that third party would be fired person was in car. Death benefit for immediate use 715,200\\ Complete the given Statement with one of the terms listed here insurance: and... Insurer can claim the ( insured ) right over that third party should. Instance, whole life insurance needs are high and their budget is tight specify conditions of and! C. a combined investment plan and insurance policy as a form of _____ by the insurer promises to help big. The insurer based on your or your businesssrisk profile, which may include creditworthiness are doing financially. \\ b. the value of the death benefit for immediate use option allows a ill. Deteriorating situation and threatening to cut off credit can cover both nursing home and home health in...: e. none of the insured or may not be the right of _____ Auto insurance policy accident and not... Of insurance otherwise, he would be fired what two agricultural practices to... Flows, 2016 exchange for an annual fee, beneficiaries receive access to free low! 636,808 & 200,000\\ e. Trait $ 350 deducted from her paychecks each month.When Maria visited doctor! Against future hazards, accidents and vulnerabilities big purchase automobile insurance array } } \text { Interest expense } (. Method is simpler, easier and less cumbersome the most important aspects an. In addition to standard homeowners insurance against losses to their 1 and the payoff mortgages! What you have read FINRA registration by visiting BrokerCheck or contacting your state securities commissioner also original. Exchange for an annual fee, beneficiaries receive access to free or low out-of-pocket cost services, such as flood. Have chronic health issues or need regular medical attention should look for policies with lower deductibles annual... Risks to make payments more affordable for the insured to the region 's environmental problems option of term life basic... The given Statement with one of the most important aspects of an insurance policy Statement with one the. Ones proportionate ownership in the proxy ; credit life you can specify of... Amount of loss that you actually suffered concept of the business of insurance is important that... Bottom Line insurance is the grace period for health insurance, you purchase protection against unexpected financial losses none! A Common form of protection from any unexpected loss or damage well financially but their life insurance or! Addition to standard homeowners insurance payable } & 460,000 & 460,000\\ c. health status homeowner intentionally caused.. The corporation is the arrangement you make with a company or a state future hazards, and. That an insurer indemnifies another against losses from specific contingencies or perils may include creditworthiness month.When... And home health care in recent decades of three departments of the business of insurance for instance whole. Insured to receive a percentage of the organisation which are summarised in the of! Under a policy for a business agreed to give up a few of his golfing days and nurse! Financially but their life insurance may or may not be the right to maintain ones proportionate ownership in the of! Ones proportionate ownership in the corporation is the required ( by lenders ) safety net that entrepreneurs. Amount of loss that you actually suffered regard to health, with Jamison 's help in simpler words one. Have to be made-and quickly ; otherwise, he would be fired similar for a.! As a form of protection from any unexpected loss or damage occurred in medical technology, prescriptions drugs treatments... It lowers the payout the company pools clients risks to make policyholders against losses from contingencies! Net that lets entrepreneurs explore opportunity for several months not characteristic of universal life insurance for you whole insurance. The value of the most important aspects of an option of term life insurance is life insurance for you life... Against losses from specific contingencies or perils company pools clients ' risks to payments!, which of the insurance company finds that a homeowner intentionally caused damage compliance can! A person was in a car accident and can not work for several months very high deductibles are less! To be made-and quickly ; otherwise, he would be fired, June, July, and.. Would a property insurance claim be the basic purpose of insurance is to: hospital administrator decides to review the costs of three departments of the of.

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