Chapter 9: Cashflows of simple products Flashcards

1
Q

Cashflows

A

Sums of money that are paid or received at particular times

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Cashflow projection

A

sets out the expected payments and receipts under a contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Payments from the provider

- immediate annuity

A

Regular annuity payments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Payments from the provider

- Term assurance

A

Lump sum on death

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Payments from the provider

- Endowment assurance

A

Lump sum on maturity or earlier death.

Possible lump sum on discontinuance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Payments from the provider

- Interest-only loan

A

Loan amount

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Payments from the provider

- Repayment loan

A

Loan amount

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Payments from the provider

- Motor insurance policy

A

Claim amounts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Amounts of payments known in advance?

- Immediate annuity

A

Yes - if level or fixed increases

No - if index-linked increases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Amounts of payments known in advance?

- Term assurance

A

Yes, unless sum assured is indexed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Amounts of payments known in advance?

- Endowment assurance

A

May be known if without-profit, unknown if unit-linked and partly known / unknown if with-profit.
Discontinuance payment may be unknown.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Timing of payments known in advance?

- Immediate annuity

A

Yes, but unknown number of payments.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Amounts of payments known in advance?

- Motor insurance policy

A

No, it depends on the size of the claim

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Timing of payments known in advance?

- Motor insurance policy

A

No, it depends on when the claim occurs, is reported and on length of claim settlement.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly