When deciding the cost of an insurance policy being applied to the customer, then the underwriting experts used the concept of data analytics.
Option C is the correct answer.
<h3>What is underwriting?</h3>
Underwriting is the act where the underwriters confirm the loan approval after analyzing the debt, income, and assets of the borrower.
The concept of data analytics is one of the processes applied to analyze the data along with collection and modeling. it helps the underwriters to figure out the conclusions based on the trends and patterns of the data.
Therefore, data analytics is the tool that underwriters used to compute the cost of insurance policy for the customer.
Learn more about the underwriting in the related link:
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The question incomplete! The complete question along with answer and explanation is provided below.
Question:
Eagle Life Insurance Company pays its employees $.30 per mile for driving their personal automobiles to and from work. The company reimburses each employee who rides the bus $100 a month for the cost of a pass. Tom, in his Mazda 2-seat Roadster, collected $100 for his automobile mileage, and Mason received $100 as reimbursement for the cost of a bus pass.
a. What are the effects of the $100 reimbursement on Tom's and Mason's gross income?
b. Assume that Tom and Mason are in the 24% marginal tax bracket and the actual before-tax cost for Tom to drive to and from work is $0.30 per mile. What are Tom's and Mason's after-tax costs of commuting to and from work?
Explanation:
a.
For Tom:
He is required to include the $100 in gross income therefore, he would have to pay after-tax cost on the reimbursement.
For Mason:
He is not required to include the $100 in gross income due to qualified transportation fringe.
b.
For Tom:
Marginal tax = 24%
The after-tax cost of commuting = 0.24*$100 = $24
The before-tax cost of commuting = $0 (since he was reimbursed)
For Mason:
The after-tax cost of commuting = $0
The before-tax cost of commuting = $0 (since he was reimbursed)
Answer: Balance sheet
Explanation: In simple words, balance sheet refers to the statement which is prepared by an entity at the end of the financial year for depicting its assets, liabilities and equity in hand at that particular point of time.
Balance sheet shows the net worth of an entity at the end of the year and can also be used to evaluate how much of the assets are funded with the capital and for how much any liability has been taken over.
Thus, from the above we can conclude that the correct answer is balance sheet.
The answer is: A) True
Consumer law was created to help prevent and detect fraudilent business practices.
