Explain why there is a savings element to a whole life insurance contract
What will be an ideal response?
The savings element results from the insurers trying to overcome the problems of self-selection and affordability in the later years of the contract. To provide affordable insurance and minimize self-selection, the premium is leveled. In the early years of the contract the premium overpays the mortality expense and in the later years, mortality is underpaid. The overpayment, interest and survivor benefit provide the cash value in the contract.
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Choose the correct order of classification from most inclusive to most exclusive.
A. Kingdom-Domain-Class-Phylum-Order-Family-Genus-Species B. Domain-Kingdom-Phylum-Class-Order-Family-Genus-Species C. Kingdom-Domain-Class-Phylum-Order-Genus-Species-Family D. Kingdom-Class-Phylum-Domain-Genus-Order-Family-Species
On July 1, 2019, Montana Company has bonds with balances as shown below.
If the company retires the bonds for $71,150, what will be the effect on the income statement?
A) loss on retirement of $4750
B) gain on retirement of $4750
C) sales revenue of $66,400
D) no effect on net income
Preprinted forms whose terms the consumer cannot negotiate, and must sign in order to obtain a product or service are referred to as ________
A) contracts of adhesion B) quasi-contracts C) contracts in restraint of trade D) voidable contracts
If every Monday at 9:00 a.m., the entire staff of a company gathers in a large hall for a question-and- answer and feedback session with the CEO, then this would be described as which kind of organizational culture artifact?
a. Story b. Ritual c. Ceremony d. Symbol