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____ [38]
3 years ago
11

An insurance contract must comply with the "Principle of Indemnity". Jarron's friend Nick, accidentally destroys Jarron's laptop

computer. Nick pays Jarron for the damage, but Jarron also submits a claim to his insurance company for the laptop. The claim will be:
a. Paid, the fact that Jarron has already been paid for the damage has no bearing on the insurance company's obligation to pay.b. Denied because Jarron has already been paid for the damage.c. Paid, but only at 50% of the limit of liability.d. Denied because the damage was caused by a friend and not the insured.
Business
1 answer:
Snezhnost [94]3 years ago
6 0

Answer:

B) Denied because Jarron has already been paid for the damage.

Explanation:

If the insurance company somehow found out that Nick already paid Jarron for the damage, then they don't have any duty to pay Jarron.

It is even possible for a person to have two different insurance policies for the same asset, but in case you have some type of accident, only one of them will pay you.

The principle of indemnity state that in case of a loss, the insured should be put back to the same position as before the loss occurred. An insured should not be able to make money due to a loss.

You might be interested in
Financial statements of Kansas Ltd (Fr) for 2X13 are authorized by management and auditors on February 15, 2X13 for issuance on
mrs_skeptik [129]

Answer:

a) In compliance with the IFRS

Explanation:

Since in the question it is mentioned that The financial statement of kansas ltd would be authorized by the management and auditors as on Feb 15 fpr issuance. On Feb 20 it settled as a plaintiff a 5 million euro lawsuit. Now the CFO of the company have make the second decision regarding the financial statement presentation in which he decides not to record this settlement so here is in compliance with the IFRS

Therefore the option A is correct

7 0
3 years ago
An investor believes that there will be a big jump in a stock price, but is uncertain as to the direction. Identify six differen
Korvikt [17]

Answer:

Consider the following explanation.

Explanation:

The six different strategies (spreads or combinations) the investor can follow:

1)short Butterfly spread: it’s a spread with selling one call option with the lowest strike price(XL),purchasing two call options with the medium strike price(XM) and  selling one call option with the highest strike price (XH) , XL<XM<XH. The strike price (XM) is generally chosen such that its equal to the stock price and options are of same maturity. The strategy shall generate the net income from the selling of calls when the stock price deviated from the strike price XM due to the high volatility. A high jump either way guarantees a net income.

2) The Straddle combination with long one put and long 1 call with the same strike price X and maturity. Its payoff depends on the deviation of the strike price if the big jump either way is expected then either the put or the call expires in the money so that the moneyness(payoffs) covers all the premiums paid for the call and put and there are profits. The high jump either way guarantees a big payoff from either the put or the call.

3)In the Strangle combination there is one long call with strike price (Xc) and one long put with strike price Xp,this combination is cheaper to generate due to purchase of OTM(out of the money) options. If the big jump either way is expected then either the put or the call expires in the money so that the moneyness (payoffs) covers all the premiums paid for the call and put and there are profits. The high jump either way guarantees a big payoff from either the put or the call. It’s easier to cover all the lesser premiums paid for the call and put and generate profits with a big move.

4) The Strip combination consists of 1 call+2 put with same exercise price and maturity. If the big jump either way is expected then either the two put or the call expires in the money so that the moneyness covers all the premiums paid for the call and put and there are profits. The payoff generated by the 2 puts is much more when the stock moves downwards as compared to when the stock moves upwards. Investor is sure of the uncertain directional big jump but thinks that the probability of downward move is greater than the upward move.

5) The Strap combination consists of 2 calls+1 put with same exercise price and maturity. If the big jump either way is expected then either the 1 put or the 2 calls expires in the money so that the moneyness covers all the premiums paid for the call and put and there are profits. The payoff generated by the 2 calls is much more when the stock moves upwards as compared to when the stock moves downwards. Investor is sure of the uncertain directional big jump but thinks that the probability of upward move is greater than the downward move.

6) Short Calendar spread: short shorter term call and at the same time short longer term call therefore the income is generated by the big move from the premiums of the calls and differences in the maturity.

3 0
3 years ago
Jack’s Snow Removal Company received a cash advance of $14,700 on December 1, Year 1 to provide services during the months of De
Ipatiy [6.2K]

Answer:

d. increase equity by $4,900

Explanation:

Jack Snow received $14,700 on December 1 for services to be rendered in December, January and February. It will not be recorded as income because it hasn't been earned.

Adjusting entries will be passed at the end of each month to recognise amount earned.

Since it is for 3 months, monthly amount earned = 14,700/3= $4,900

At December 31 Retained earnings will be credited for $4,900.

Retained earnings is part of owner's equity.

So equity will increase by $4,900

8 0
3 years ago
you lend a friend 10,000 dollars for which your friend will repay you 27,027 dollars at the end of 5 years. What interest rate a
Step2247 [10]

Answer:

The interest rate is "21.999%".

Explanation:

The given values are:

Amount lent,

= 10,000

Amount repaid,

= 27,027

Years (n),

= 5

As we know,

⇒  Amount \ repaid = Amount \ lent\times (1+r)^n

On substituting the given values, we get

⇒                27,027=10,000\times (1+r)^5

⇒                  \frac{27,027}{10,000}=(1+r)^5

⇒                 2.7027=(1+r)^5

⇒                 1+r = (2.7027)^{(1/5)}

⇒                 1+r=1.21999

On subtracting "1" from both sides, we get

⇒          1+r-1=1.21999-1  

⇒                      r=0.21999

i.e.,

⇒                      r=21.999 \ percent

5 0
3 years ago
__________-has four components, including _________-, which is the ability to connect to others, build positive relationships, r
34kurt

Answer:

The correct words for the blank spaces are: Emotional Intelligence; Relationship Management.

Explanation:

Emotional Intelligence refers to the ability individuals have to control their emotions in reference to the interactions they have with others. Emotional Intelligence has four (4) factors: <em>Self-Awareness, Self-Management, Social Awareness, </em>and <em>Relationship Management</em>.  

Relationship management involves getting along with others, handling conflict effectively, and using sensitivity to manage interactions successfully.

8 0
3 years ago
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