Which of the Following Statements Is True About the State

question 3

Multiple Choice

Which of the following statements is true about the state guaranty association fund?

• A)All the states do not have state guaranty association fund for property/casualty and life/health insurance.
• B)They are security deposit pools made up of voluntary contributions
• C)Its contributions are from solvent, private insurance companies doing business in their respective states.
• D)It assesses each company on the basis of the percentage of its premium volume to cover the obligations to policyholders.
• E)Only companies who have volunteered to pool their funds are allowed to use it during difficult times.

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Definitions:

IASB

The International Accounting Standards Board, responsible for the development and publication of International Financial Reporting Standards.

Leasing Exposure Draft

A preliminary standard or guideline released for public comment that addresses accounting for lease transactions.

Capital Leases

Leasing arrangements that are considered to possess the economic characteristics of asset ownership, typically leading to the lease asset being recorded on the balance sheet.

Capital Lease

A lease agreement that transfers substantially all the risks and rewards of ownership of an asset to the lessee, effectively treated as an asset purchase for accounting purposes.