In a service-type warranty, warranty revenue is________
A) not recognized
B) recognized equally over the warranty period
C) recognized only in the last year of the warranty period
D) recognized in the year of sale
Answer: C
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According to the Emerging Market Potential Indicators index, ________ is an indicator of market intensity
A) average annual growth rate of primary energy use B) percentage share of middle class in income/consumption C) private consumption as a percentage of GDP D) per-capita imports from the United States
All the following are true about underwriting except:
A) a major purpose of underwriting is to reduce adverse selection against the insurance company B) fair rates should be charged so that each group of insureds is not subsidized by other groups C) the underwriter should select only those insureds that are expected to have no losses D) the underwriter makes decisions based on criteria established by the company management