Insurance

6 years ago

Some characteristics of the judicial system and regulatory environment increase the frequency and ...

Some characteristics of the judicial system and regulatory environment increase the frequency and severity of loss. This hazard is called
A) moral hazard.
B) physical hazard.
C) attitudinal hazard.
D) legal hazard.

JamesLu 35 1 Reply

6 years ago

Which of the following is a reason that social insurance programs exist?

Which of the following is a reason that social insurance programs exist?
A) to compete with private insurance programs
B) to provide a base of economic security
C) to provide need-tested benefits to low-income individuals
D) to r

chouri 38 1 Reply

6 years ago

Which of the following statements about the provisions of the building and personal property ...

Which of the following statements about the provisions of the building and personal property coverage form is (are) true?
I. A separate deductible must be satisfied for each building damaged in the same occurrence.
II. Under the replacement

JamesLu 38 1 Reply

6 years ago

Which of the following statements about the use of deductibles is (are) true?I.They represent risk ...

Which of the following statements about the use of deductibles is (are) true?
I. They represent risk retention by insurance purchasers.
II. They tend to increase the cost of adjusting small claims.
A) I only
B) II only
C) bot

AzJose 39 1 Reply

6 years ago

Which of the following is a financial risk that may be faced by a business organization?

Which of the following is a financial risk that may be faced by a business organization?
A) injuries suffered by employees at the workplace
B) lost income after a fire loss
C) product liability risk
D) currency exchange rate risk

JamesLu 40 1 Reply

6 years ago

Under an equity-indexed annuity, what name is given to the percentage increase in the stock index ...

Under an equity-indexed annuity, what name is given to the percentage increase in the stock index that is credited to the contract?
A) the expense rate
B) the exclusion ratio
C) the indexing rate
D) the participation rate

JamesLu 40 1 Reply

6 years ago

Which of the following statements about a worker's primary insurance amount is (are) true?I.It is ...

Which of the following statements about a worker's primary insurance amount is (are) true?
I. It is the monthly amount paid to a worker who elects early retirement at age 62.
II. It is equal to 50 percent of the worker's final ave

chouri 41 1 Reply

6 years ago

Which of the following statements about the regulation of life insurance companies is (are) ...

Which of the following statements about the regulation of life insurance companies is (are) true?
I. The percentage of assets a life insurance company may invest in a specific type of asset (e.g., stocks or bonds) is generally limited by law.

AzJose 42 1 Reply

6 years ago

The loss settlement under which of the following supports the principle of indemnity?

The loss settlement under which of the following supports the principle of indemnity?
A) life insurance
B) valued policies
C) replacement cost property insurance
D) actual cash value property insurance

JamesLu 42 1 Reply

6 years ago

The National Association of Insurance Commissioners (NAIC) administers an "early warning ...

The National Association of Insurance Commissioners (NAIC) administers an "early warning system" to help ensure insurance company solvency. This system uses data provided in the annual statement to identify companies that may pose a solvenc

chouri 43 1 Reply

6 years ago

Under the needs approach, when is the dependency period of a surviving spouse assumed to end?

Under the needs approach, when is the dependency period of a surviving spouse assumed to end?
A) 1 or 2 years after the breadwinner's death
B) when the youngest child reaches age 18
C) when the surviving spouse reaches age 65

chouri 43 1 Reply

6 years ago

Kevin has an individual major medical policy that his insurer agrees to keep in force until age 65. ...

Kevin has an individual major medical policy that his insurer agrees to keep in force until age 65. However, the company has the right to increase the premium each year for the underwriting class in which Kevin has been placed. Which renewal provisio

JamesLu 43 1 Reply

6 years ago

Marco, a risk manager in California, is interviewing for a new position in the state of Washington. ...

Marco, a risk manager in California, is interviewing for a new position in the state of Washington. When Marco asked about methods of providing workers compensation, the answer surprised him. In Washington, employers can self-insure the risk or obtai

AzJose 43 1 Reply

6 years ago

The appraisal provision in the Personal Auto Policy is used to determine the

The appraisal provision in the Personal Auto Policy is used to determine the
A) value of a loss payable under the property damage liability.
B) amount paid for a physical damage loss to the insured's auto if the insured and insurer d

chouri 43 1 Reply

6 years ago

Which of the following statements about automobile insurers that specialize in insuring high-risk ...

Which of the following statements about automobile insurers that specialize in insuring high-risk motorists with poor driving records is (are) true?
I. The actual premium paid by an applicant is set by the federal government and is independent o

chouri 43 1 Reply

6 years ago

All of the following are benefits to society that result from insurance EXCEPT

All of the following are benefits to society that result from insurance EXCEPT
A) less worry and fear.
B) elimination of moral hazard.
C) indemnification for loss.
D) loss prevention.

JamesLu 44 1 Reply

6 years ago

Which of the following statements is (are) true with respect to the time value of money?I.Money ...

Which of the following statements is (are) true with respect to the time value of money?
I. Money received today is worth more than the same amount of money received in the future.
II. The present value of a future amount is greater than th

AzJose 44 1 Reply

6 years ago

Factors that may result in more restrictive underwriting decisions include which of the ...

Factors that may result in more restrictive underwriting decisions include which of the following?
I. Inadequate rates.
II. The unavailability of reinsurance at favorable terms.
A) I only
B) II only
C) both I and II
D) n

chouri 44 1 Reply

6 years ago

One method through which reinsurance is provided is through an organization of insurers that ...

One method through which reinsurance is provided is through an organization of insurers that underwrites insurance on a joint basis. Through the organization, financial capacity is available for large commercial risks. This reinsurance arrangement is

AzJose 44 1 Reply

6 years ago

Which of the following is a principal method of ensuring the solvency of insurers?

Which of the following is a principal method of ensuring the solvency of insurers?
A) requiring submission of annual financial statements to state regulators
B) tracking and investigating market conduct complaints against insurers
C)

chouri 44 1 Reply

6 years ago

In which of the following did the Court decide that insurance was interstate commerce when conducted ...

In which of the following did the Court decide that insurance was interstate commerce when conducted across state lines, and therefore was subject to federal regulation?
A) Paul v. Virginia
B) South-Eastern Underwriters Association case

chouri 44 1 Reply

6 years ago

Which of the following statements about savings bank life insurance is true?

Which of the following statements about savings bank life insurance is true?
A) The maximum amount that a depositor can purchase is $50,000.
B) The maximum amount of insurance that a depositor can purchase is limited to the amount of money

JamesLu 44 1 Reply

6 years ago

All of the following are considered insured locations for medical payments to others (Coverage F) ...

All of the following are considered insured locations for medical payments to others (Coverage F) under a homeowners policy EXCEPT
A) a new vacation home purchased by an insured during the policy period.
B) a motel room where an insured is

chouri 44 1 Reply

6 years ago

The current price per cord of lumber is $26.00. The effective annual lease rate is 2.0% and the risk ...

The current price per cord of lumber is $26.00. The effective annual lease rate is 2.0% and the risk free rate is 4.0%. The cost to harvest one cord is $20.00 and constant. What is the trigger price at which we will harvest the lumber?
A) $27.61

elf_fu 44 1 Reply

phuongha2892

6 years ago

Which of the following is an example of consequential (indirect) loss?

Which of the following is an example of consequential (indirect) loss?
A) the theft of a person's jewelry
B) the destruction of a firm's manufacturing plant by an earthquake
C) the cost of renting a substitute vehicle while a

chouri 45 2 Replies

chouri

5 years ago

Which of the following is least likely to occur during a "hard" insurance market period? ...

Which of the following is least likely to occur during a "hard" insurance market period?
A) difficulty in obtaining insurance
B) tightening underwriting standards
C) higher insurer profits
D) increasing premiums

JamesLu 45 2 Replies

JamesLu

6 years ago

Deductibles are not used in which of the following type of insurance?

Deductibles are not used in which of the following type of insurance?
A) life insurance
B) health insurance
C) property insurance
D) disability income insurance

JamesLu 45 1 Reply

6 years ago

All of the following statements describe the flexibility available to the owner of a universal life ...

All of the following statements describe the flexibility available to the owner of a universal life insurance policy EXCEPT
A) Policy loans are permitted on an interest-free basis.
B) The frequency of premium payments can be varied.

JamesLu 45 1 Reply

6 years ago

Which of the following statements about the minimum vesting standards for a qualified defined ...

Which of the following statements about the minimum vesting standards for a qualified defined benefit plan is (are) true?
I. Under cliff vesting, an employee must be at least 50 percent vested after 5 years of service.
II. Under graded vest

chouri 45 2 Replies

chouri

5 years ago

Which of the following statements about the characteristics of social insurance programs is true?

Which of the following statements about the characteristics of social insurance programs is true?
A) Benefits are loosely related to a worker's earnings.
B) Benefits are paid primarily on the basis of individual equity.
C) Partici

AzJose 45 1 Reply

6 years ago

All of the following changes would reduce the long-range deficit for the Social Security program ...

All of the following changes would reduce the long-range deficit for the Social Security program EXCEPT
A) increase the OASDI taxable wage base.
B) delay scheduled increases in the full retirement age.
C) make all OASDI benefits ful

AzJose 45 1 Reply

6 years ago

Which of the following statements about the building and personal property coverage form is (are) ...

Which of the following statements about the building and personal property coverage form is (are) true?
I. A limited amount of coverage is provided for pollutant cleanup and removal at the described premises if the release or discharge of the po

AzJose 45 1 Reply

6 years ago

Why is the damage to the property of others also relevant for a firm?

Why is the damage to the property of others also relevant for a firm?
A) It is a speculative risk.
B) Since a firm needs to pay for the damage to the property of others
C) Due to the complex supply chains upon which firms rely
D)

medulla 46 1 Reply

jameel

6 years ago

Sound financial planning requires a trade off between:

Sound financial planning requires a trade off between:
A) risk and return alternatives
B) gratification and savings
C) investment and saving alternatives
D) fees and returns

medulla 46 1 Reply

national

6 years ago

Abandoning an existing loss exposure is an example of

Abandoning an existing loss exposure is an example of
A) avoidance.
B) retention.
C) noninsurance transfer.
D) insurance transfer.

chouri 46 2 Replies

chouri

5 years ago

All of the following are disadvantages of noninsurance transfers EXCEPT

All of the following are disadvantages of noninsurance transfers EXCEPT
A) The party to whom the potential loss is transferred may be unable to pay.
B) The transfer may fail because the contract language is ambiguous.
C) The only poten

JamesLu 46 1 Reply

6 years ago

The right of the states to regulate the business of insurance was first established by

The right of the states to regulate the business of insurance was first established by
A) the South-Eastern Underwriters Association case.
B) Paul v. Virginia.
C) the Financial Modernization Act.
D) the Sherman Act.

chouri 46 1 Reply

6 years ago

Which of the following types of families is likely to have the least need for a large amount of life ...

Which of the following types of families is likely to have the least need for a large amount of life insurance?
A) a blended family
B) a traditional family
C) a single person family
D) a sandwiched family

AzJose 46 1 Reply

6 years ago

Which of the following statements about beneficiary designations is (are) true?I.The primary ...

Which of the following statements about beneficiary designations is (are) true?
I. The primary beneficiary is entitled to the death proceeds of a life insurance policy only if the contingent beneficiary dies before the insured.
II. If a re

AzJose 46 1 Reply