Post on 14-Apr-2018
7/30/2019 INS21 Questions Chap03
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15) ___________Assets are easily convertible to cash at or near propertys market value.
16) ___________Assets are not easily convertible to cash at or near propertys market value.
17) What is Policy Holders Surplus?
18) _______________is a financial obligation owned by the insurer to estimate final settlementamount on all claims that have occurred but have not yet been settled.
Case 01:
Earned Premiums 4000
Written Premiums 8000Incurred Underwriting Expenses 1000
Incurred Losses 1500
Loss Exp 500
Investment Income 1500
Investment Expense 500
Policy Holders Surplus 6000
Case 02:
A Policy taken on 1 st July 2007 and expires on 1 st July 2008, whose Written Premium is
24000. What is the Written Premium, Earned Premium, Unearned Premium for 2007 and
2008?
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Case 03:
An Inusrance company has the following assets and Liabilites. Calculate the Policy Holders
Surplus.
Assets:
Cash and Short Term Investments 500
Bonds 1000
Preferred Stock 1000
Common Stock 2000
Mortgages 500
Real Estate 2000
Premium balance due More than 90 Days 1000
Liabilities:
Loss and Loss Expense Reserve 2000
UnEarned Premium Reserve 2000
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