INVESTING IS THE CORRECT ANSWER ]
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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Answer:
Explanation:
The journal entry is shown below:
Interest expense A/c Dr $3,000
To Interest payable A/c $3,000
(Being interest is recorded)
The computation of the interest expense is shown below:
= Principal × rate of interest × number of months ÷ total number of months in a year
= $125,000 × 6% × (4 months ÷ 12 months)
= $2,500
The four-month is calculated from the September 1 to December 31
The income effect because you’ll gain more money personally and the substitution effect is about everybody in the building getting a “fair share”.
