(550,000/3125,000 What will companies A and B pay? e Company B will pay $4,000 a
ID: 358900 • Letter: #
Question
(550,000/3125,000 What will companies A and B pay? e Company B will pay $4,000 and Company A will pay $1,000. d. Company A will pay $3,000 and Company B will pay $2,000. e. Company B will pay $3,000 and Company A will pay $2,000 Company A will pay $2,500 and Company B will pay prices through time? 48. Which of the following explains the moverment of insurance a. Redlining cycle e. Actuarial cycle d. Economic cycle e. Underwriting cycle n) Which of the following statements is troe about the state guaranty a. All the states do not have state guaranty association fund for property/casualty and fund? life/health insurance b. They are security deposit pools made up of voluntary contributions e. Its contributions are from solvent, private insurance companies doing business in their respective d. It assesses each company on the basis of the percentage of its premium volume to cove the obligations of the insolvent insurer to policyholders. e. Only mcnnies who have volunteered to pool their funds are allowed to use it during difficult times SO. A contract of insurance to cover losses caused bw the insured' s own arson would be illeg most likely abnlipolicy, and thus unenforceabic. ldentify the contract requirement that a Legal form b. Legal purpose e. Offer and d. Consideration parties 13Explanation / Answer
1) The correct answer is E
The movement of insurance prices through time is explained by Underwriting cycle
The underwriting cycle is the tendency of property and casualty insurance premiums, profits, and availability of coverage to rise and fall with some regularity over time.
2) The correct answer is C
The state guaranty association funds are the contributions from solvent, private insurance companies doing business in their respective states.
Guaranty associations are funded by the insurance industry, not taxpayers. In order to amass the funds needed to protect the state's policyholders, insurers doing business in that state are assessed a share of the amount required to meet allcovered claims.
3) The correct answer is D
A contract of insurance to cover losses caused by insured's own arson would be illegal and contraty to public policy and thus unenforceable. Hence, there will be absence of consideration.
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