AIAF 114 - Chapter 4 Practice Exam Questions With Correct Answers!!
25 views 0 purchase
Course
AIAF 114
Institution
AIAF 114
Some premium payment plans may include additional payments that exceed the amount required if
the premium was paid in full at the policy inception. Such additional payments that are a function of
the amount of premium payment are treated under U.S. regulatory accounting as - Answer-Finance
charg...
AIAF 114 - Chapter 4 Practice Exam Questions Some premium payment plans may include additional payments that exceed the amount required if the premium was paid in full at the policy inception. Such additional payments that are a function of the amount of premium payment are treated under U.S. regulat ory accounting as - Answer -Finance charges. Under U.S. regulatory accounting, the liability for extended reporting endorsements covering a definite period into the future is recorded as - Answer -Unearned premium reserves Retrospective premium adjustments - Answer -Can continue for many years after the original policy term has expired. Deficiency in the loss reserves - Answer -Does not necessarily indicate a deficiency in the unearned premium reserve The asset -liability approach may be used as a new accounting standard for insurance contracts, rather than the deferral -matching approach. Under the asset -liability approach, revenue is recognized - Answer -When the insurer gains control of the asset resulti ng from the revenue Which one of the following might be a reason for a regulatory accounting system to gross up the reported premiums by the amount of credits for large deductible arrangements? - Answer -To avoid a negative impact on smaller insureds under a premium assessment system Under a deferral -matching approach, the portion of written premium that relates to future coverage periods is considered - Answer -An unearned premium liability. Which one of the following best describes loss reserves? - Answer -The estimate of the ultimate cost of incurred but unpaid losses Which one of the following statements is true regarding loss reserves and the unearned premium reserve? - Answer -Loss reserves and the unearned premium reserve cover different portions of claim obligations with no overlap.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller PatrickKaylian. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
