Who elects the governing body of a mutual insurance company

Who elects the governing body of a mutual insurance company

Who elects the governing body of a mutual insurance company

A) chairman of the board
B) bondholders
C) stockholders
D) policyholders

The Correct Answer for the given question is option D) policyholders

Mutual insurance companies are governed by a board of directors, and the policyholders elect them. They set the corporate goals. They are also implementing corporate strategies to ensure quality products are delivered. They own the mutual insurance company. The surplus may be distributed through dividends or retained in exchange for future premium reductions. To summarize, mutual insurance is owned by its policyholders. These policies are designed to give policyholders full control over the management of their company and to provide insurance coverage.

Mutual insurance companies are governed by a board of directors. The board is made up of members who are either bondholders or policyholders. Bondholders elect the majority of the directors, but they do not elect the governing body. Policyholders elect a minority of the directors. The board’s job is to manage and operate the company, make decisions about its future, and protect the interests of its policyholders.

Mutual insurance companies are regulated by the state in which they are located. The shareholders of a mutual insurance company do not elect the governing body of the company. This body is typically a board of directors. The board of directors makes decisions on behalf of the shareholders, and usually operates in the best interest of the company as a whole.

The chairman of the board of directors does not elect the governing body of a mutual insurance company. This is because the board is responsible for managing the business and affairs of the company, while the governing body is responsible for setting policy and overseeing day-to-day operations.

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The unexpired insurance at the end of the fiscal period represents

The unexpired insurance at the end of the fiscal period represents

The unexpired insurance at the end of the fiscal period represents

a) an accrued asset
b) an accrued liability
c) an accrued expense
d) a deferred expense

The Correct Answer for the given question is option d) a deferred expense

The unexpired insurance at the end of the fiscal period represents a deferred expense. When an organization has insurance that is still effective and has not expired, the insurance is said to be unexpired. This means that the organization has not yet paid for the policy and it may still be in effect (at least as long as no claims are filed). In some cases, organizations may choose to renew their insurance even if it is currently unexpired, in order to guarantee coverage for future events. By carrying unexpired insurance, an organization can reduce its risk of financial liability associated with potential claims.

An expense that has already been incurred but has not yet been consumed is called a deferred expense. Costs are recorded as assets until the underlying goods and services are consumed; at that point, they become expenses.Expenses incurred in the past but not yet realized are deferred expenses.  A prepaid payment is an advance payment for future consumption of a service. The cost is included on the balance sheet as an asset. It could be prepaid rent, prepaid insurance, etc. Since there is still unexpired insurance at the end that reflects the deferred expense.

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Which among the following scenarios warrants insurance?

Which among the following scenarios warrants insurance?

Which among the following scenarios warrants insurance?

A) The sole bread winner of a family might die untimely leaving the entire family to fend for itself, such a scenario warrants purchasing of life insurance.
B) A person may lose his wallet
C) Stock prices may fall drastically
D) A house may lose value due to natural wear and tear

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A commercial property coverage part with the basic causes of loss form attached covers all of the following perils except which one?

A commercial property coverage part with the basic causes of loss form attached covers all of the following perils except which one?

A commercial property coverage part with the basic causes of loss form attached covers all of the following perils except which one?

a) Windstorm
b) Explosion
c) Volcanic eruption
d) Sprinkler leakage

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State which of the statements given below is correct .

State which of the statements given below is correct .

State which of the statements given below is correct .

a. An organisation can exist only with employees
b. An organisation can exist only with different sections
c. An organisation can exist only with its own office building
d. An organisation can exist without a purpose
e. An organisation will grow as years pass by

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