Endowment effect Samenvattingen, Aantekeningen en Examens

Guaranteed insurability optionAnswer - An individual is purchasing a permanent life insurance with a face value of $25,000. While this is all the insurance that he can afford at this time, he wants to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy? Both the principal and interest will be liquidated over a selected period of time.Answer - Which of the following best describes fixed-period settlement option? ...

Fair Credit Reporting Act In an attempt to protect an individual's right to privacy, the federal government passed the Fair Credit Reporting Act of 1970. This law requires fair and accurate reporting of information about consumers, including applications for insurance. State Guaranty Association guarantees that a claim will be paid if an insurer becomes insolvent the difference between what a general agent does as compared to a PPGA PPGA's primarily sell. General agents primarily recrui...

Finance API 141: Behavioral Finance: Implications for Financial Management Multiple Choice Questions 1. Amy isthe chief financial officer of a retail toy store. Recently,she decided that the firm should expand its operations and open two additional stores. Within a very brief period, it was obvious that Amy had made a very bad decision in opening those stores, given that the economy is in the middle of a severe recession. In reflecting back on her decision, Amy realizes that she made a b...

MN State Insurance Exam Questions with Verified Solutions How are employee FICA taxes collected? The employer withholds the employee's tax and pays it along with the employer's portion Mateo applies for an insurance policy that will have an annual premium payment of $1,000 ($510 semi-annually, $260 quarterly, and $100 monthly) if issued. Which of the following premium checks would be adequate consideration if he chose to pay monthly? $100 The nonforfeiture option that provides t...

All of the following are true in general about riders, except: A) A rider can modify conditions of the policy by expanding or decreasing its benefits B) Riders are optional C) All riders are provided for as long as the policy is in effect D) Riders typically are available for an additional premium - Answer- C) All riders are provided for as long as the policy is in effect What type of insurance is designed for someone with a large insurance need but with limited cash flow? - Answer- Ter...

Alabama Life & Health Insurance Exam Complete Guide Term Insurance Temporary protection because it only provides coverage for a specific period of time. Also known as pure life insurance Term insurance provides what is known as _________________ pure death protection Term insurance provides the greatest amount of coverage for the _______________ lowest premium Term insurance has no ____________ cash value Three basic types of term coverage available, based on how the face amount (dea...

Taxation of Life Insurance and Annuity - Premium and Proceeds [Best Score: 75%] Employee Benefits Plans [Best Score: 87%] Underwriting/Pricing/Claims [Best Score: 100%] Financial Structure of Insurers Life insurance death proceeds are correct answer: Generally not taxed as income. A policyowner surrendered a non-participating whole life policy for $10,000 cash value. The policyowner had at that time paid premiums totaling $8,000. The federal income tax effect would be correct answer: $2,...

Disability Buy-Out plans feature: - ANSWER Long elimination plans up to two years (A disability buy-out plan funded with disability insurance has a long elimination period of generally two years. The elimination period begins the day of the disability. Then the disability policy will provide a lump sum to buy the disabled partner out. They want to make sure that the partner is not going to recover and come back to work) When MUST the Office of Insurance Regulation conduct a market conduct exa...

3.3 - Health Promotion Child & Adolescent Spring 2023 Questions & Answers Which statement best describes development in infants and children? a. Development, a predictable and orderly process, occurs at varying rates within normal limits. b. Development is primarily related to the growth in the number and size of cells. c. Development occurs in a proximodistal direction with fine muscle development occurring first. d. Development is more easily and accurately measured than growth. - ANS-A...

CFA Level 1 - 101 Must Knows 368 Questions with Verified Answers Addition Rule of Probability - CORRECT ANSWER ADDITION: P(A or B) = P(A) + P(B) - P(AB) Roy's Safety First Criterion - CORRECT ANSWER Safety First Ratio = (E(R) - Rₜ) / σ Larger ratio is better If (Rₜ) is risk free rate, then it becomes Sharpe Ratio Sharpe Ratio - CORRECT ANSWER Sharpe Ratio = (E(R) - RFR) / σ Larger ratio is better If (Rt) is higher than RFR, then it becomes Safety First Ratio Centra...