Ask Question
BusinessBusiness
22 March, 09:49

A long stretch of national economic hardship causes a 7% rate of inflation. A policyowner notices that the face value of her life insurance policy has been raised 7% as a result. Which policy rider caused this change?

+4
Answers (2)
  1. 22 March, 11:44
    0
    Cost of Living Rider

    Explanation:

    In insurance terms, a rider is a provision that adds or changes benefits to a basic policy, for example, a rider can restrict certain coverage, or provide additional coverage.

    The cost of living rider basically increases the benefits received by a policy holder if the cost of living (inflation) increases. This cost of living is generally determined by the CPI calculated by the Bureau of Labor Statistics.
  2. 22 March, 13:17
    0
    The Policy of Insurance policy that is sensitive and reflects the inflationary changes in a society is called the Insurance Inflation Protection.

    Explanation:

    Insurance Inflation protection is an insurance policy feature in which the value of benefits increases by a pre-defined percentage for example the (7%) rate at specific time periods to keep up with inflation.

    Consequently, the effect of inflation on insurance companies is that the renewal of the same number of exposures in future years generates higher written premiums. In the long run, insurance costs will keep pace with the rate of inflation, even though in some years insurance will exceed or lag the overall inflation rate.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A long stretch of national economic hardship causes a 7% rate of inflation. A policyowner notices that the face value of her life insurance ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Simone is writing a cover letter to Casey Jones, and is unsure of the employers gender. How should she address her letter?
Answers (1)
Calculating Residual Income Pelican Manufacturing earned operating income last year as shown in the following income statement: Sales $531,250 Cost of goods sold 280,000 Gross margin $251,250 Selling and administrative expense 184,400 Operating
Answers (1)
A smaller company with 75 employees wishes to establish a retirement plan. Some of the employees are highly paid, but most are part-time low wage earners.
Answers (1)
Nina McRidder became an embarrassment to her company when she joked about the ruling monarchy in England in front of a group of visiting English businesspeople. She should have known that political ridicule by a foreigner is rarely accepted. Ms.
Answers (1)
About four months ago, 16-year-old amanda went on a drastic diet that caused her to drop from her normal weight of 120 pounds to less than 90 pounds. although her weight is dangerously low, she continues to undereat because she thinks she looks fat.
Answers (1)
New Questions in Business
otato Company began the period with an accounts receivable balance of $2,693 and a balance in the allowance for doubtful accounts of $494 The following transactions occurred in Potato Company a.
Answers (1)
A supermarket places its store brand of blackberry jam priced at $5 per jar in the fruit preserves aisle, alongside the jam jars of a better known brand-whose products are priced at $8 apiece.
Answers (1)
The goal of the biological (ergonomic) approach to job design is: a. to make the work simple so that anyone can be trained quickly and easily to perform it. b.
No Answers
Perfect price discrimination describes a situation in which the monopolist a charges exactly two different prices to exactly two different groups of customers. b maximizes consumer surplus. c experiences a zero economic profit.
Answers (1)
On August 1, Masters Company buys 2000 shares of ABD common stock for $72500 cash. On December 1, the stock investments are sold for $75000 in cash.
Answers (1)
Home » Business » A long stretch of national economic hardship causes a 7% rate of inflation. A policyowner notices that the face value of her life insurance policy has been raised 7% as a result. Which policy rider caused this change?
Sign Up Forgot Password?