Busfin - Study guides, Class notes & Summaries

Purpose of The insurer agrees to pay no more than the actual amount of the loss - Correct Answer To prevent the insured from profiting from a loss - To reduce moral hazard There are three main methods to determine actual cash value: - Correct Answer Replacement cost less depreciation - Fair market value - Broad evidence rule Fair market value - Correct Answer is the price a willing buyer would pay a willing seller in a free market Broad evidence rule - Correct Answer...

BUSFIN 3220 BUSINESS FINANCE EXAM Q & A 2024.

BUSFIN 4223 - Bond Valuation Questions with 100% Actual correct answers | verified | latest update | Graded A+ | Already Passed | Complete Solution

Risk - Correct Answer Uncertainty concerning the occurrence of a loss Pure Risk - Correct Answer A situation in which there are only the possibilities of loss or no loss What types of risk does insurance deal with? - Correct Answer Pure Risk Diversifiable Risk Accidental Risk Speculative Risk - Correct Answer A situation in which either profit or loss is possible (ex. buying common stock, betting) Diversifiable Risk - Correct Answer Affects only individuals or small group...

Financial Modernization Act of 1999 (Gramm-Leach-Biley) - Correct Answer What drove insurers to become much more diversified? Mergers - Correct Answer Why has the number of life insurers, and in particular mutual life insurers, declined significantly? Financial Holding Company (FHC) - Correct Answer an umbrella organization that can own subsidiaries involved in different parts of the financial industry (similar to a bank holding company) Repeal of Glass-Steagall Act (this act sepa...

Risk Management - Correct Answer a process that identifies loss exposures faced by an organization and selects the most appropriate techniques for treating such exposures Loss Exposure - Correct Answer any situation or circumstance in which a loss is possible, regardless of whether a loss occurs T/f: Possibility is NOT the same thing as possibility - Correct Answer True Chance of Loss - Correct Answer the probability that an event will occur Objective Probability - Correct An...

Private Law - Correct Answer regulates disputes between private individuals or groups Ex: if a store owner is delinquent in paying rent to the landlord, the resulting dispute is governed by this Public Law - Correct Answer controls disputes between private individuals or groups and their government. Ex: if a store dumps waste behind its building in violation of loca, state, or federal environmental regulations, this will resolve the dispute Civil Law - Correct Answer delineates the r...

Annuitant - Correct Answer Person who receives payment of annuities Annuity - Correct Answer a periodic payment that continues for a fixed period or for the duration of a designated life or lives Immediate Annuity - Correct Answer Pays periodic income payments that are guaranteed and fixed in amount Deferred Annuity - Correct Answer provides periodic income payments at some future date Bonus Annuities - Correct Answer Pays higher interest rates initially Liquidation Peri...

Principle of Indemnity - ANS >> the insurer agrees to pay no more than the amount of the loss; the insured should not profit from the loss Actual Cash Value - ANS >> replacement cost less depreciation Fair Market Value - ANS >> the price a willing buyer would pay a willing seller in a free market Broad Evidence Rule - ANS >> the determination of actual cash value should include all relevant factors an expert would use to determine the value of the...