Under One Method of Estimating a Loss Reserve in Life

question 7

Multiple Choice

Under one method of estimating a loss reserve in life insurance and disability insurance,the reserve is based on life expectancy,duration of disability,and similar factors.This method of estimating loss reserves is called the

• A)judgment method.
• B)tabular value method.
• C)loss ratio method.
• D)average value method.

Understand the importance of actuarial information in determining the discount or premium of bonds.

Interpret the relationship between market interest rates, stated interest rates, and their impact on bond pricing and interest expense.

Understand the accounting treatment for the retirement of bonds before their maturity and the recognition of material gains or losses.

Comprehend the journal entry recording for bond reacquisition and its impact on financial statements.

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Definitions:

Conflict Resolution

A method or process of resolving disagreements or disputes between parties through negotiation, mediation, or other peaceful means.

Task Conflict

Occurs when there are disagreements among team members about the content and outcomes of the task being performed, sometimes leading to innovation but potentially harmful if excessive.

Group Development

A process through which a team evolves over time, typically moving through stages of forming, storming, norming, performing, and adjourning.

Relationship Conflict

Involves personal disagreements and emotional tension between individuals, often detracting from team cohesion.