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2 years ago

The focus of a line underwriter is

Business

1 answer:

Kamila [148]2 years ago

3 0

Evaluation of new submissions and renewal underwriting are the main objectives of a line underwriter.

<h3>What serves as the main goal of underwriting?</h3>

Your lender must first confirm the details of your income, assets, debt, and property in order to grant you the loan. Underwriting is the name given to this process. An underwriter is a financial expert who examines your financial situation and determines the level of risk a lender will accept if they decide to grant you a loan.

<h3>In the P&C industry, which three forms of risk are underwritten?</h3>

The three main factors that affect underwriting risk in the PC sector are unexpected increases in loss rates, unexpected cost increases, and unexpected declines in investment yields.

<h3>The method by which insurers assess risk</h3>

The likelihood that a policyholder will experience risk and its magnitude will be predicted by insurers after they have assessed historical loss data for various perils and the risk profile of a potential policyholder. The insurer will calculate a monthly premium using this profile.

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You might be interested in

Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Shunda issued $30,000,000 of five-year, 10% bonds

ahrayia [7]

Answer and Explanation:

a. The Journal entry is shown below:-

1. Cash Dr, $32,433,150

To Premium on Bonds Payable $2,433,150

To Bonds Payable $30,000,000

(Being Sale of bonds is recorded)

2. Interest Expense Dr, $1,297,326

($32,433,150 × 4%)

Premium on Bonds Payable Dr, $202,674

To Cash $1,500,000

($30,000,000 × 5%)

(Being First semiannual interest payment, including amortization of premium is recorded)

3. Interest Expense Dr, $1,289,219

($32,433,150 - $202,674) × 4%

Premium on Bonds Payable Dr, $210,781

To Cash $1,500,000

(Being second semiannual interest payment, including amortization of premium is recorded)

($30,000,000 × 5%)

b. Annual interest paid $3,000,000

Less: Premium amortized $364,094

($202,674 + $161,420)

Interest expense for first year $2,635,906

7 0

3 years ago

David founds a company and goes through the investment rounds shown below: Round Source Price Number of Shares Class A Self $0.5

juin [17]

Answer:

D. 11%

Explanation:

Step 1. Given information.

Cumulative shares:

400,000

500,000

300,000

400,000

2,000,000

Step 2. Formulas needed to solve the exercise.

Addition of the cumulative shares = 400,000 + 500,000 + 300,000 + 400,000 + 2 million = 3.6 million.

self share = 400000 = 0.4 million
David Shares = self share / addition of cumulative shares

Step 3. Calculation. and Step 4. Solution.

David's share = 0.4/3.6 = 11%

4 0

3 years ago

The federal trade commission (ftc) created the _____ rule, giving consumers three days to cancel purchases they make from salesp

yawa3891 [41]

Cooling-Off Rule.

The FTC allows consumers to cancel purchases within 3 days from sales made when salespeople come to consumers' homes. This "cooling-off rule" helps consumers feel less pressure and to assess their purchases after the salesperson has left his or her home. The rule acknowledges the power disparity when salespeople enter consumers' homes attempting to make a sale.

7 0

4 years ago

Megan, a seller, tells the party buying her home that the property will soon be part of the public water system. She makes this

dlinn [17]

The buyer relies upon this information and moves forward with the purchase of the home. This is an example of Innocent misrepresentation.

<h3>What Is Innocent Misrepresentation?</h3>

Misrepresentation in general is a legal term that means “a false statement of fact that has the effect of inducing someone into a contract.” It originates from English common law, but has been adopted as a legal principle in the United States. It is a statement that is either untrue, or highly misleading (as opposed to a statement of opinion).

Innocent misrepresentation is one of the three recognized varieties of misrepresentations in contract law. Essentially, it is a misrepresentation made by someone who had reasonable grounds for believing that his false statement was true. So in the above example, if the seller didn’t know the stereo was actually old, he would only be liable for an innocent misrepresentation.

In the real world, however, it is often the case that because the other two varieties of misrepresentation (negligent and fraudulent) are much more difficult to prove, often this is the best course of action.

Learn more about Misrepresentation on:

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7 0

2 years ago

Assume the spot rate of a currency is $.37 and the 90-day forward rate is $.36. The forward rate of this currency exhibits a ___

Paladinen [302]

Answer:

<u>discount </u>, <u>10.81</u>%

Explanation:

Given : Spot Rate of the currency = $0.37

90 day Forward Rate = $0.36

A premium or a discount on a currency is given by the following equation:

= $\frac{FR\ -\ SR}{SR} * \frac{365\ days}{Forward\ Days} *100$

wherein, FR = Forward Rate of a currency

SR = Spot Rate of a currency

Forward days= Forward period

In the given case, premium or discount can be calculated, by putting the values in the above equation. We have,

= $\frac{.36\ -\ .37}{.37} * \frac{365\ days}{90 Days} *100$

= - 10.81 %

the negative sign denotes a forward discount

5 0

3 years ago