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What type of account must underlying assets for variable annuity contracts be maintained in?
Underlying assets for variable annuity contracts must be maintained in separate accounts. These accounts are distinct from the insurer's general account and are designed to hold the assets that back the variable investment options offered to policyholders. This structure helps ensure that the investment performance of the variable annuity is directly linked to the performance of the underlying investments, allowing for greater flexibility and potential growth.
Is prepaid insurance account a nominal account?
No, it is a real/permanent account. Insurance expense is a nominal account.
What is commodity account?
In Commodity account who provides orders to buy or sell commodity contracts on behalf of clients and charges them a commission.
What type of account is Prepaid Insurance?
Prepaid insurance is personal nature of account and amount in it is shown as current asset in balance sheet.
What does account impounding mean?
Account impounding is an accounting term used to describe an account that is maintained by a mortgage company. This account collects hazard insurance, property taxes, private mortgage insurance, and other required payments.
Can variable universal life insurance be converted into a fixed account?
Variable universal life insurance is not an account. It is a policy that invests in separate accounts in an attempt to earn higher returns than a fixed policy. A variable universal life insurance policy can be converted into a different type of life insurance policy but not a different kind of account.
What type of account must underlying assets for variable annuity contracts be maintained in?
Underlying assets for variable annuity contracts must be maintained in separate accounts. These accounts are distinct from the insurer's general account and are designed to hold the assets that back the variable investment options offered to policyholders. This structure helps ensure that the investment performance of the variable annuity is directly linked to the performance of the underlying investments, allowing for greater flexibility and potential growth.
What are the types of escrow account?
Escrow accounts hold money before it is disbursed for a specific purpose. One type of escrow account is established by the purchaser to hold funds before the purchase. Another type of escrow account is established by the mortgage lender to hold the money for the homeowners property taxes and insurance payments.
Is prepaid insurance account a nominal account?
No, it is a real/permanent account. Insurance expense is a nominal account.
What are some disadvantages to variable annuity insurance?
Some disadvantages of Variable Annunity Insurance are a ten percent penalty from the IRS if you withdraw any funds before the age of sixty as well as another penalty if you withdraw over the amount of your yearly allotment. The account also incurs a management fee every year.
The entry to close the appropriate insurance account at the end of the accounting period is what?
Insurance account is expense account and expense account is closed in income summary account. Insurance account should be credited where as income summary account should be debited
How many different types of life insurance are there?
There are two main categories of life insurance: whole life and term insurance. Whole life insurance is an insurance policy combined with an investment account and has several variations such as universal life and variable life. Term life insurance has no investment account, but provides a set sum of money should one die within the specified term of coverage. Variations of term life insurance include annuable-renewable and level-term policies.
How can you find out if your mother has a life insurance policy?
Have you tried asking her about it? A life insurance policy is just like a bank account or any other financial product. You cannot call all the banks in you area to see if your Mom has an account with them and what the balance is. The same privacy laws pertain to life insurance contracts or any other insurance products. Unless she tells you what you want to know you cannot find out this personal information. That said, if you assist her with her finances in any way, such as by balancing her checking account, any debits for the payment of insurance premiums would likely appear.
What kind of things are preferred to take in account when making contracts with management?
When making contracts with management, you always need to take into account the goals of the account, the timeline for achieving these goals, and all costs involved. The contracts usually have a penalty for not achieving the goals, so make sure to plan for contingencies.
What is variable life insurance?
Variable life insurance differs from whole life insurance and universal life insurance in that policy owners direct the distribution of their premium payments among several different accounts or funds rather than of the company's choosing. Typical account choices are: common stock, bond, mortgage, and money-market accounts. With a variable policy, the death benefit and cash value benefits vary in relation to the value of the investments underlying the policy. If the value of the accounts increases, so will the benefits; if the value of the account decreases, so will the benefits, subject to a minimum guarantee. Variable life insurance is more risky to the policy owner than the other forms of cash value insurance, but there is a possibility of greater returns. In fact, variable life insurance is so much like "normal" investing that agents offering it must be licensed securities dealers and registered with the U.S. Securities and Exchange Commission. For Insurance � a free service that connects consumers with insurance agents and policies � recommends that variable and variable-universal policies are most suitable suitable for long term obligations and those who are more active investors and for estate growth and death tax liquidity. In Response to Chris' prior response. "Variable" means it is not a fixed account, but in subaccounts directed according to the policy owner's wishes. These subaccount include, but not always, popular funds like the ones offered by Fidelity Investment. They all have there field of investments. Some are Blue Chip stock funds, Over-seas funds and even more simple Government Bond funds. Money Market is a choice. The choices can be endless and the owner picks % of the net premium paid after expense to go to each Sub-Account. Your Death Benefit will stay the same if you choose the Level Death Benefit option. Your benfit will be payable as long as premiums are paid and there are funds in the accumulation account connected to the subaccounts. You can also choose an Increasing Death benefit that includes the Face ammoun, the amount of insurance on your life, plus the value of your funds. You have choices but get a good agent licensed to sell Variable Contracts. he will need his Series 6 and usually series 63 securties license.
Can a bank withdraw from your account for insurance without your permisson?
Are you sure you didn't permit your insurance company to bill your account directly when you bought the insurance? This is becoming a very common thing. If you didn't, you'd have to ask how the insurance got your account information to get the funds.
Can you get car insurance without a bank account?
Yes. Having a bank account is not a prerequisite for obtaining auto insurance coverage.
