Explain how dividends may be used when distributed to the policy owner in a participating contract
What will be an ideal response?
The following is a list of how dividends can be used. 1 ) taken in cash, 2 ) pay a portion of the next premium, 3 ) left to accumulate interest and pay the policy up sooner than agreed to, 4 ) purchase paid-up insurance, 5 ) some insurers allow the purchase of one-year term insurance.
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A break -even point can be expressed both in dollars and units
Indicate whether the statement is true or false
Companies allocate service department costs to other departments for all of the following reasons except:
A) to improve decisions concerning how to use scarce resources. B) to hold departments that consume the resources accountable for the services they consume. C) to provide more accurate product cost information. D) to determine what the salary of service department employees should be.
An understatement of ending inventory will cause an understatement of assets and equity on the balance sheet.
Answer the following statement true (T) or false (F)
Which of the following are not types of restrictive indorsements?
A) Conditional indorsements B) Indorsements prohibiting further transfer C) Indorsements in trust D) Blank indorsements