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3 years ago

What role does math play in the insurance industry?

Business

1 answer:

Nataly_w [17]3 years ago

3 0

Answer:

The correct answer based on the options given is A)

Explanation:

Actuarial Science is a branch of mathematics predominantly used by the Insurance Industry to create a formula or mathematical model that enables them to charge a profit-oriented rate for a particular risk.

If insurance companies charge arbitrarily, they may overcharge thus leading to a collapse of the system. If they undercharge, the system of pooling risks becomes unsustainable as claim paying capabilities are reduced.

Hence the need to use a mathematical model to ensure that rates give room for the ability of the system to meets it's obligations when they arise and for the companies to make a profit.

The use of models is the reason why sometimes there are hard markets in insurance and at other times there are soft markets.

Cheers!

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Discuss ten (10) different purposes of an evaluation of salesperson performance and how each purpose affects the performance eva

ololo11 [35]

Answer:

1. To ensure that compensation and other reward disbursements are consistent with actual performance

2. To identify salespersons who needs to be promoted

3. To identify salespersons who should be fired/terminated

4. To determine the specific training and counseling needs of individual

5. To provide information for effective human resource (Succession) planning

6. To identify criteria that can be used to recruit and select salespersons in the future

7. To advise salespersons of work expectations

8. To motivate salespersons

9. To help salespersons set their career goals

10. To enhance effective communications between salesperson and sales manager

Explanation:

How each purpose affects the performance evaluation process

1. To ensure that compensation and other reward disbursements are consistent with actual performance

Compensation and rewards affects the performance and it should be on the merit.

2. To identify salespersons who needs to be promoted

Promotion shall be given on the basis of evaluation

3. To identify salespersons who should be fired/terminated

Termination should be on the basis of performance evaluation

4. To determine the specific training and counseling needs of individual

Training shall be provided on the basis of evaluation

5. To provide information for effective human resource (Succession) planning

Succession planning should be on the basis of performance evaluation so that the exceptional performers must be retained,

6. To identify criteria that can be used to recruit and select salespersons in the future

It helps in understanding the factors that will be useful to recruit and select salespersons

7. To advise salespersons of work expectations

On the basis of evaluation, it will be decided to communicate the work expectations

8. To motivate salespersons

It will help in understanding the factors which motivate the salespersons

9. To help salespersons set their career goals

Salespersons will understand about their future and set their career goals.

10. To enhance effective communications between salesperson and sales manager

It will help to communicate effectively about the expectations of salesperson and sales manager and better coordination

7 0

3 years ago

William and Charlotte Collins divorced in November of Year 1. William moved out and Charlotte remained in their house with their

musickatia [10]

Answer:

Charlotte has the priority to claim Autumn as her dependent even though William covered 70% of her living expenses during the year. In order for a parent to be able to claim a child as a dependent, he/she must live with the child for more than half the year. In this case, since William left the house, Charlotte has preference over claiming Autumn as her dependent (even though William lived with Autumn for 10 months). Also, a parent always has priority over other relatives including a grandparent.

7 0

3 years ago

You deposit $1,500 in a bank where you have a savings account. The bank

skad [1K]

Interest rate risk

Interest rate risk is the risk that arises for fixed-rate investments from fluctuating interest rates. How much interest rate risk a fixed-rate investment has depends on how sensitive its price is to interest rate changes in the market.

8 0

3 years ago

5. The Federal Reserve's organizationThere are members of the Federal Reserve Board of Governors.The Federal Reserve's role as a

Lady bird [3.3K]

Answer:

U.S. banks that cannot borrow elsewhere.

Explanation:

In the United States, the Federal Reserve goes as a last resort lender to companies that do not have certain other acquisition practices, and the inability to obtain loans can significantly impact the economy.

so correct answer is U.S. banks that cannot borrow elsewhere.

3 0

3 years ago

In 2022, Company A had net credit sales of $2,250,000. On January 1, 2022, Allowance for Doubtful Accounts had a credit balance

Zielflug [23.3K]

Answer:

A credit entry of $96,000

Explanation:

When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

Given that Past experience indicates that the allowance should be 10% of the balance in receivables

Allowance = 10% * $600,000

= $60,000

Amount written off of $90,000 would have made the balance in the allowance for doubtful debts to

= $90,000 - $54,000

= $36,000 (Debit)

However, the balance in the account at the end of the year should amount to $60,000 hence the adjustments required

= $60,000 + $36,000

= $96,000 (credit)

5 0

3 years ago