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2 years ago

What time peropd allows an insured's life insurance policy to remain in force even if the premium was not paid on tje due dates?

1 answer:

7 0

Grace period allows an insured's life insurance policy to remain in force even if the premium was not paid on the due date.

<h3>What is grace period?</h3>

A life insurance policy won't lapse during the grace period even though a payment is past due after a missed insurance premium is due. Every state in the US requires the grace period, a highly helpful provision, to be included in every life insurance policy. Depending on the rules of each state, the minimum grace period is from 28 to 31 days; however, some businesses may grant extended grace periods.

When the required number of days have gone, the grace period formally ends at the close of business on the day the missing premium payment is due. The grace period in a whole life, universal life, or variable universal life policy would only be applicable if the premium payment was past due and there was no cash value left in the policy. It is unlikely that a policy will enter "grace period status" if a premium payment is missed if cash value is still present as long as it may be utilised to pay the premium or at the very least draw a loan to pay the premium.

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Giant Company has three products, A, B, and C. The following information is available:

myrzilka [38]

Answer:

$24,000

Explanation:

Product A Product B Product C

sales 70,000 97000

Variable cost 37000 51000

Contribution margin 33000 46000

Avoidable cost 10,000 20000

Unavoidable cost 7000 12000 9400

Operating income 16000 14000

Total operating income if product C is dropped is (16000+14000 +3400-9400)

=$24000

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3 years ago

During 2018, its first year of operations, Pave Construction provides services on account of $142,000. By the end of 2018, cash

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Answer:

The adjustment for uncollectible accounts on December 31, 2018:

Debit Bad Debts Expense $10,250

Credit Allowance for Doubtful Account $10,250

Explanation:

In Pave Construction, 2018 is the first year of operations. The company provides services on account of $142,000. By the end of 2018, cash collections on these accounts total $101,000.

At the end of 2018, Accounts Receivable (the uncollected accounts) has debit balance of $41,000 ($142,000 - $101,000 = $41,000)

Pave estimates that 25% of the uncollected accounts will be bad debts

Bad Debts Expense = 25% x $41,000 = $10,250

The adjusting entry to record the bad debts expense will be:

Debit Bad Debts Expense $10,250

Credit Allowance for Doubtful Account $10,250

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4 years ago

Neon Light Company of Kansas City ships lamps and lighting appliances throughout the country. Ms. Neon has determined that throu

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Answer:

a. Cash freed up by cash management:

= Amount received * speed increased by + Amount disbursed by speed reduced by

= 2,550,000 * 2 days + 1,110,000 * 1/2 days

= 5,100,000 + 555,000

= $‭5,655,000‬

b. Interest on freed up cash:

= ‭5,655,000‬ * 7%

= $‭395,850‬

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3 years ago

During January, Ajax Co. Incurs 1,850 hours of direct labor at an hourly cost of $11.80 in producing 1,000 units of its finished

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Answer:

Std rate per hour: 11.00

Std hours = 1000*2 =2000

Actual hours = 1850

Actual rate = 11.80

Labor cost variance = Std cost - Actual cost

Labor cost variance = (2000*11) - (1850*11.80)

Labor cost variance = 170 Unfavorable

Labor rate variance = Actual hrs (Std rate - Actual rate)

Labor rate variance = 1850 *(11-11.80)

Labor rate variance = 1480 Unfavorable

Labor qty variance = Std rate (Std hrs-Actual hrs)

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3 years ago

Megan used a reconciliation worksheet provided by her bank. Line 5 should equal line 6 at the end of the reconciliation, but it

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Answer:

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4 years ago

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