a captive insurance company provides insurance to its corporate owner or owners. true or false?

Expert Solution

True

A "captive insurer" is generally defined as an insurance company that is wholly owned and controlled by its insureds; its primary purpose is to insure the risks of its owners, and its insureds benefit from the captive insurer's underwriting profits.

ekkarill92 answered 1 year ago

Stakeholders are owners with majority control. True or False?

True of False: A way to measure the advantage of financial leverage to owners is to...

True of False: A way to measure the advantage of financial leverage to owners is to examine EPS before borrowing additional funds. True of False: Shareholders would benefit from the use of debt whenever EBIT is above the Break-Even EBIT. True of False: Replacing equity financing with debt financing always leads to higher EPS. ________ capital structure refers to a combination of debt and equity that maximizes the value of the firm. A. A minimal B. An irrelevant C. An...

Insurance Policies are "contracts of indemnification" True or false?

True or False: 1. A life insurance company must be concerned about the possibility that the...

True or False: 1. A life insurance company must be concerned about the possibility that the people who buy life insurance may tend to be less healthy than those who do not. This is an example of adverse selection. 2. . An insurance company must be concerned about the possibility that someone will buy fire insurance on a building and then set fire to it. This is an example of adverse selection.

Question 5 Of the following statements, which are true for the corporate form of organization? Owners...

Question 5 Of the following statements, which are true for the corporate form of organization? Owners have limited liability for corporate debts Directors oversee its business affairs Stockholders do not have the power to bind the corporation to contracts Transfer of ownership rights among owners generally does not impact equity Compared to other forms of organization-capital (financing) is more difficult to accumulate Generally there not double taxation on corporate income that is distributed to owners Owners are agents of the...

true or false ‏____ 5. One key value of limited liability is that it lowers owners'...

true or false ‏____ 5. One key value of limited liability is that it lowers owners' risks and thereby enhances a firm's value. ‏____ 6. If a firm's goal is to maximize its earnings per share, this is the best way to maximize the price of the common stock and thus shareholders' wealth. ‏____ 7. If Firm A's business is to obtain savings from individuals and then invest them in financial assets issued by other firms or individuals, Firm A...

Question

a captive insurance company provides insurance to its corporate owner or owners. true or false?

Solutions

Expert Solution

Related Solutions

Stakeholders are owners with majority control. True or False?

True of False: A way to measure the advantage of financial leverage to owners is to...

Insurance Policies are "contracts of indemnification" True or false?

True or False: 1. A life insurance company must be concerned about the possibility that the...

Question 5 Of the following statements, which are true for the corporate form of organization? Owners...

true or false ‏____ 5. One key value of limited liability is that it lowers owners'...

The issue of corporate rights analyzes the entity or the corporation. True or False

True or false? The expected rate of return to the holder of a corporate bond is...

Current federal government insurance programs includes flood insurance. True False

True or False. Please give an explanation as to why its true or false. Too much...