Indicate whether the statement is true or false, and justify your answer.The main advantage of a Cochrane insurance contract over a guaranteed renewable contract is that it does not rely on a legally unenforceable binding lifetime commitment.
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Indicate whether the statement is true or false, and justify your answer.
The main advantage of a Cochrane insurance contract over a guaranteed renewable contract is that it does not rely on a legally unenforceable binding lifetime commitment.
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- Which of the following is not a requirement of a "qualified" long-term care insurance policy? The benefit of the policy must offer inflation protection. The contract must offer to cover pre-existing conditions. The contract must be guaranteed renewable. The contract must offer to pay a nonforfeiture benefit.True or False? 1. An insurance contract is derecognized when it is extinguished and when it is modified where the modification meets any of the conditions for derecognition. 2. The occurence of the event must be certain at the inception of the insurance contract.Explain the difference between commutative contract and non-commutative contract. Why Insurance is Non-Sharia compliant?
- 2) Explain why offer and acceptance is essential to the formation of a binding insurance contract?Choose the best answer. 1.Which statement is TRUE about an insurance contract? * a.The insurer is the party that has an obligation under an insurance contract to compensate a policyholder if an insured event occurs. b.The policyholder is the party that has a right to compensation under an insurance contract if an insured event occurs. c.The insured event is an uncertain future event that is covered by an insurance contract and creates insurance risk. d.All of these statements are true about an insurance contract. 2. IFRS 17 provides that insurance contracts should * a.Comply with all existing IFRS b.Generally continue to be subject to existing accounting policies. c.Comply with the IFRS Framework document. d.Be covered by IAS 32 and IFRS 9 3.An insurance contract can contain both deposit and insurance elements. An example might be a reinsurance contract where the cedant receives a repayment of the premiums at a future date if there are no claims under the contract. Effectively this…Which of the following is NOT true about a temporary insurance agreement? Select one: a. It can only cover life insurance and living benefits b. It expires the date the policy becomes effective c. The applicant will submit the premium with the application d. It can be provided if the agent believes the policy will be issued
- Differentiate between “Compensatory contract” and “Non-Compensatory contract”. Does the concept of Conventional Insurance align with Shari’ah? Explain in detail.One of the purposes that deductible are used in insurance policies is to O eliminate coverage for small claims. O place restrictions or limits on the insurer's promise to perform. provide broader coverage by increasing the number of perils covered. exclude perils that are not insurable.Which of the following types of insurance does NOT involve a contract with an external party? a. self insurance b. directors and officers insurance c. property insurance d. life insurance
- Which is not an essential characteristic of an insurance contract? A. transfer of significant risk from the issuer to the policyholder B. policyholder pays the issuer for the transfer of risk C. issuer indemnifies the policyholder for losses when the insured event occurs D. none of the aboveAn implied condition of pooling risks with insurance is that the event being insured against is under the control of the individuals. TRUE or FALSE Strictly speaking, the price of insurance is the pure or actuarily fair premium TRUE or FALSEWhich of the following is not an insurance management tool? Group of answer choices deductibles. screening of applicants. limits on insurance. restrictive covenants. signalling.