Since there are no government entities that step in to guarantee liabilities of a life insurance...

Since there are no government entities that step in to guarantee liabilities of a life insurance company should it fail to satisfy its obligations, the pricing terms that life insurance companies offer on policies are related directly to their ____________
a. Total assets
b. Securities and Exchange Commission rating
c. Total liabilities
d. Financial ratings

Pension funds are financed by contributions by
a. The employer

b. The employee

c. The tax system, much like Medicare and Medicaid

d. Both A and B

e. All of the above

Expert Solution

Answer is c. Total liabilities.

Since there are no government entities that step in to guarantee liabilities of a life insurance company should it fail to satisfy its obligations, the pricing terms that life insurance companies offer on policies are related directly to their c. Total liabilities.

The main obligation of an insurance company is to meet or pay its liabilities. so, their pricing terms are related directly to their total liabilities so that they can pay out their liabilities. in other words they set the price of policies as such that it will be able to pay out its liabilities.

Answer is d. Both A and B.

Pension funds are financed by contributions by both the employer and employee. generally both employer and employee make the same amount of contribution in the pension fund. amount of employee contribution is some % of his salary and employer match the same amount.

jeff jeffy answered 2 years ago

An insurance agent sells dental insurance, medical insurance, and life insurance. He checks sales since the...

An insurance agent sells dental insurance, medical insurance, and life insurance. He checks sales since the beginning of the year and finds that he has sold 50 dental, 48 medical, and 28 life insurance policies. Some customers purchased more than one type: 22 bought both dental and medical, 18 bought both medical and life, 12 bought both dental and life, and 8 bought all three types. How many of these customers bought exactly one of the three types of insurance...

Since the FASB sets the standards for both not-for-profit health care entities and investor-owned entities, the...

Since the FASB sets the standards for both not-for-profit health care entities and investor-owned entities, the financial reporting requirements are the same for these two entities. Do you agree with this statement? Why or why not?

Contingent liabilities abound in the real world. Life and health insurance companies and their stockholders wonder...

Contingent liabilities abound in the real world. Life and health insurance companies and their stockholders wonder how big the cost of diabetes, Alzheimer’s, and AIDS really are and what damage they might do in the future. Why do you think most companies disclose but do not record contingent liabilities?

Fund life & health insurance Explain carefully why this statement is false Since the level of...

Fund life & health insurance Explain carefully why this statement is false Since the level of insurer’s capital reflects its financial stability, companies with the highest absolute value of capital is always preferred.

Contingent Liabilities Many companies provide warranties with their products. Such warranties typically guarantee the repair or...

Contingent Liabilities Many companies provide warranties with their products. Such warranties typically guarantee the repair or replacement of defective goods for some specified period of time following the sale. Conceptual Connection: Why do most warranties require companies to make a journal entry to record a liability for future warranty costs?

Discuss the main differences between business entities and government entities. How do these differences impact the...

Discuss the main differences between business entities and government entities. How do these differences impact the accounting methods that each of these types of entities uses? 2. Describe the five types of government entities. 3. Explain why modified accrual accounting and the financial resources measurement focus are appropriate methods for accounting for Governmental Type Funds. 4. Explain why accrual accounting and the economic resources measurement focus are appropriate methods for Proprietary Funds and Fiduciary Funds.

What entities both government and non-government that oversees the governance and adoption of telehealth in the...

What entities both government and non-government that oversees the governance and adoption of telehealth in the United States?

An introduction/summary of the Government Guarantee. The general impact of this policy to the efficient frontier...

An introduction/summary of the Government Guarantee. The general impact of this policy to the efficient frontier based on the Australian environment. (2+2=4points)

If government regulators guarantee a natural monopolist that it will earn normal profits, then the monopolist...

If government regulators guarantee a natural monopolist that it will earn normal profits, then the monopolist will a) achieve resource-allocative efficiency. b) charge a price above average total cost. c )produce a quantity of output at which marginal revenue equals price. d) none of the above

"GOVERNMENT PRINTS MONEY." The Federal Government and the Federal Reserve are two different entities. Factors are...

"GOVERNMENT PRINTS MONEY." The Federal Government and the Federal Reserve are two different entities. Factors are the only ways the Federal Government can obtain a dollar to spend and who actually issues the currency that is used. another factor is who determines how much currency is in circulation and who determines it. Explain that.

Question