A basic premise underlying the application of is that it is reasonable to assume that plausible relationships among data exist and continue in the absence of known conditions to the contrary.
The purest representation of asset/liability dynamics is instead through ____________, which measure assets and liabilities according to the cash flows they generate.
What usually features a fixed premium that acts to levelize the policyholder’s outlay over the lifetime of the policy?
Life insurance companies frequently make mortgage loans to affiliated companies (such as subsidiaries or companies owned by a common parent company) and to joint ventures in which the life insurance company is a joint venturer. The company must carefully examine:
The loss reserve estimate is a significant estimate in the financial statements of an uninsured entity.
Evidences the fair market value of the property that is security for the mortgage loan. The appraisal value is used to determine that the loan to market value ratio is in compliance with regulatory requirements. It also is used to determine any non-admitted mortgage loan amount. Appraisals are obtained from:
For immediate annuities, this is the ______________, defined by the sequence of periodic annuity benefit payments the policyholder is promised.
In case of supplementary contracts, the amount of each payment is computed on the basis of the assumed (or guaranteed) interest rate and the number and frequency of payments selected. For example:
The approach in which the investment policy should “identify acceptable ranges for investments in different types of instruments, including cash, equities, bonds and debentures, and real property is known as:
Which are the types of misstatements relevant to the auditor’s consideration of fraud in a financial statement audit?
