4. An insurance company needs __ liquidity if its claims are predictable.

4. An insurance company needs ______ liquidity if its claims are ____ predictable.

A.        less; less
B.         more; more
C.         less; more
D.        more; less
E.         claim predictability doesn’t impact liquidity

5. Life insurance companies do not have ____ as a typical source of funds.

A.        Deposit insurance premiums
B.         Annuity plans
C.         Investment income
D.        Life insurance premiums
E.         Health insurance premiums

6. Policyholders can borrow from their Life Insurance Company against their policies in __________

A.        endowment loans
B.         ordinary life loans
C.         policy loans
D.        separate account loans
E.         surrender value loans

Expert Solution

Answer 4)

The corect option is D.

When the Predictability of claims is less the insurance company needs more liquidity. As the need of urgency arises so the claims may be more than anticipated and hence needs more cash or liquidity to support the claims.

Answer 5)

The correct Option is A. Deposit insurance premiums is not a typical source of funds to life insurance companies.

The other options Annuity plans, Investment income, Life insurance premiums, Health insurance premiums are all soure of funds for life insurance companies.

Answer 6)

The correct option is A. The individual can borrow from the life insurance company when it is a traditional plan or endowemnet plan. The other loans are possible for money black plans and wholelife insurance plans.

The other options plans B,C D and E will not grant loans for the individual.

jeff jeffy answered 2 years ago

2. Insurance Company An insurance company states that 90% of its claims are settled within 30...

2. Insurance Company An insurance company states that 90% of its claims are settled within 30 days. A consumer group selected a random sample of 75 of the company's claims to test this statement. If the consumer group found that 55 of the claims were settled within 30 days, do they have sufficient reason to support their contention that fewer than 90% of the claims are settled within 30 days? Use 0.05 level of significance. Hint: We are testing for...

An insurance company wants to audit health insurance claims in its very large database of transactions....

An insurance company wants to audit health insurance claims in its very large database of transactions. In a quick attempt to assess the level of overstatement of this database, the insurance company selects at random 400 items from the database (each item rep- resents a dollar amount). Suppose that the population mean of the entire database is $8, with population standard deviation $2. (i) Find the probability that the sample mean of the 400 would be less than $6.50. (ii)...

An insurance company randomly chooses 24 insurance claims from a box containing 200 insurance claims without...

An insurance company randomly chooses 24 insurance claims from a box containing 200 insurance claims without replacement. There are two distinct categories of insurance claims in the box (25 false claims and 175 others). What type of probability distribution can be used to figure out the chance of the insurance company choosing at least 6 false claims from the box?

An insurance company states that 15% of all fire insurance claims are fraudulent. Suppose the company is correct, and that it receives 130 claims.

An insurance company states that 15% of all fire insurance claims are fraudulent. Suppose the company is correct, and that it receives 130 claims.What's the probability that at least 15 claims are fraudulent?What's the probability that less than 10 claims are fraudulent?

An insurance company has found that 8% of its claims are for damages resulting from burglaries....

An insurance company has found that 8% of its claims are for damages resulting from burglaries. What is the probability that a random sample of 20 claims will contain 5 or fewer that are for burglary damages? a. What is the probability that a sample of 20 claims will contain more than 5 claims for damages resulting from burglaries? b. What is the expected number of claims resulting from burglaries?

An insurance company has found that 10% of its claims are for damages resulting from burglaries....

An insurance company has found that 10% of its claims are for damages resulting from burglaries. A random sample of 20 claims is pulled. a. What is the expected number (mean) that will be claimed for damages resulting from burglaries? b. What is the standard deviation? Use Binomial Tables in your text to answer the following: c. What is the probability that exactly 5 of the 20 will contain claims that are for burglary damages? d. What is the probability...

An insurance company claims that for x thousand policies, its monthly revenue in dollars is given...

An insurance company claims that for x thousand policies, its monthly revenue in dollars is given by R(x)=225x and its monthly cost in dollars is given by C(x)=180x+16,200 A) find the break even point B) grap the revenue and cost equations on the same axes C) from the graph estimate the revenue and cost when x=180

An automobile insurance company uses a lot of expensive multipart paper to process its claims. The...

An automobile insurance company uses a lot of expensive multipart paper to process its claims. The printer from whom they receive the paper has informed them of discounts available for quantity orders, but the company doesn't have space to store the entire amount ordered at one time. The company would receive the paper from the printer at the rate of 40 boxes per week, and it uses the paper at the rate of 20 boxes per week. Annual demand is...

An insurance company states that at least 85% of its claims are settled within 30 days.

4) (1 point) An insurance company states that at least 85% of its claims are settled within 30 days. A consumer group selected a random sample of 66 of the company's claims to test this statement. They found that 55 of the claims were settled within 30 days. Does the consumer group have evidence to disbelieve the insurance company's claim? 1. Write the hypotheses to test if the rate of claims settled within 30 days is less than 85%. H0H0:...

(1 point) An insurance company states that at least 86% of its claims are settled within...

(1 point) An insurance company states that at least 86% of its claims are settled within 30 days. A consumer group selected a random sample of 73 of the company's claims to test this statement. They found that 60 of the claims were settled within 30 days. Does the consumer group have evidence to disbelieve the insurance company's claim? 1. Write the hypotheses to test if the rate of claims settled within 30 days is significantly less than 86%. H0H0:...

Question