1. Insurance as a transfer and sharing of cost of losses, what wud be more appropriate of the following: It’s an insurance policy for the payment of premiums. 2. What of the following are ideally insurable loss exposures: Loss exposures which are definite in time and measurable Large exposures of similar but independent exposures Loss exposures which are economically feasible to insure Loss exposure of small dollar value 3. All of the following are private insures except Stockholders Mutual insures Guaranty funds Reciprocal insurers 4. All of the following are state insurance programs except: Workers compensation Unemployment program FAIR Plans Crop insurance 5. What exactly does the state insurance regulation do and options were: Protects the consumer from paying a premium that is not excessive (this is right) 6. An example was given saying a particular person faces a covered loss and the process of the insurance company covering the loss is an act of which principle Indemnity
Transcript
1. Insurance as a transfer and sharing of cost of losses, what wud be more appropriate of the following:It’s an insurance policy for the payment of premiums.
2. What of the following are ideally insurable loss exposures: Loss exposures which are definite in time and measurable Large exposures of similar but independent exposures Loss exposures which are economically feasible to insure Loss exposure of small dollar value
3. All of the following are private insures except Stockholders Mutual insures Guaranty funds Reciprocal insurers
4. All of the following are state insurance programs except:Workers compensationUnemployment programFAIR PlansCrop insurance
5. What exactly does the state insurance regulation do and options were:Protects the consumer from paying a premium that is not excessive (this is right)
6. An example was given saying a particular person faces a covered loss and the process of the insurance company covering the loss is an act of which principle
IndemnityUtmost good faithTransfer of unequal amountsAdhesion
7. A person buying a series of insurances’ was told insurance is not just for safety but also means of Reduced social burden Source of investment fundsProviding support for credit
8. A man who is a doctor recently had a fire accident at his clinic. Which insurance should he have purchased to get additional living expenses?
Commercial general liability
Business income insurance Professional liabilityProperty insurance
9. According to an insurer a claimant is one who is?Make a claim to the insured charging responsibilityThe insured who makes a claimLitigation defendant
10. NAIC is solely developed for:MODEL LAW (one of the options will have this)
11. Question on why we have IRIS Financial ratios (answer will have this as one of its options)
12. Ratemaking is the process by which insurers use to calculate the rates that determine the premium to charge for insurance coverage which is accurately done by
ActuaryInsurerIndependent adjustersAgents
13. One of the following statements about E&S is true they are:They E&S insurance is transacted by a licensed broker to other admitted insurersThey are characterized by poor loss experienceThey are a form of insurance available by licensed insurersThey require to be file their rates with the state insurance regulation
14. To find the total gain of operation what is the other parameter required when we have net underwriting gain as 2,000,000.
Net investment incomeNet investment gain or lossLoss ratioCombined expenses
15. Non-admitted assets example would be:Furniture and equipmentStockBondMoney in transit
16. What of these would be present in a balance sheet?
Admitted assetsRevenuesExpenses Net income
17. Capacity ratio is given by Written premiums by its policy holder surplusEarned premiums by its unearned premiumsWritten premiums by its policy holder surplus
19. The agency is a relationship that exists when one party the agent acts in behalf of thePrincipalBrokerIndependent adjustersTPA’s
20. A particular person say ABC sells insurance for a person who seeks it. ABC being the independent agent who does all the formalities as per the agency contract given by the principal. Finally the person purchases the insurance with the help of agent. This act of the agent is what authority?
ImpliedExpressApparentBinding
21. Responsibilities of the agent to the principalReasonable careLoyaltyAccountingAll of the above
22. Difference between independent and exclusive
23. ABC advertises using the agents name and photo but mainly focuses on advertising the insurance company it represents what kind of agency is DEF Exclusive agencyIndependent agencyDirect writing systemInsurance contract provision
24. Jane works for XYZ insurance and in an automobile firm. She has a client John who buys a automobile from her. If she recommends him to buy XYZ insurance Which unfair trade practice is it?
Tie- in salesRebatingUnfair trade practices
25. Formal enactments of federal, state and local legislative is referred to as
Statuary lawCommon lawConstitutional law
26. What is civil law?
Government takes responsibility for prosecuting the wrongdoers.Applies to wrongful acts that deem the society
Deals with a personal quarrel between two parties
27. In property insurance, carelessly taped electrical wiring is an example of
Cause of lossHazard PerilTime element loss
28. John is 22 yr old male, single who walks drives 15 miles per day. His insurer (underwriter) says that this will be considered while deciding rating and will he will belong to the large group of people in this category which type of rating was he talking about?
Class ratingJudgmental ratingIndependent rating Experience rating
29. When will you have Adverse selection?
When the premium is low as compared to loss exposures
30. XYZ wanted to incorporate risk management in his house. Which is the initial risk management step?
Identifying loss exposure Analysis Loss exposure Examining the feasibility of the risk management techniqueImplementing the risk management technique
31. Mary is the single parent and has to commute a long distance for work. There is no other proper mode of transport and she is having a very critical economic situation, she wants to buy a automobile to drop her children at school and also to commute to work. Which is the best risk management tech which she can follow?
RetentionInsuranceAvoidanceLoss control
32. XYZ takes reinsurance with ABC cause there is no other way to continue doing business.. ACC to the AGREEMENT 50% of all the loss exposures will be reinsured by ABC. Which kind of reinsurance is it?
Treaty reinsuranceFacultative reinsuranceBroad form coverage
33. A company ABC which is entitles to receive sales commission is also entitled to receive contingent commission annually based on performance and is applicable to which of these options:Independent agency Direct writingExclusive agency
34. in the case of property insurance apart from a owner who else has insurable interest and name is specified in the declaration page:MortgageeBaileeBailor
35. Which of the following is one an activity of the underwriterBilling Claim handlingPricing coverageAll of the above
36. Some man has a lawn mower which isn’t functioning well and the son points to his dad saying this isn’t working well. Immediately this man would tell his son he has insurance and they have nothing to worry. What hazard would this be?
Morale Hazard
Moral hazard
Physical hazard
Legal hazard
37. There was a question on which way wud be used by an underwriter to gather info on an applicant
financial rating services
38. there was question on cancellation of policy wat wud happen?
39. A person in an orginazation handles all the claims by phone email contacts what is he to the insurer?
Inside claim representative
Field representative
Adjuster
Broker
40. There was this case study saying a company faced some serious claim in another state where they weren’t located so what exactly should they do for handling their claims?
Independent Adjustersbrokers
Inside field representatives
41. all the various steps in claim handling shud be learnt
42. what is the necessity of having reservation of rights letter when one of which is to inform the insured there cud be a coverage problem
Protect the insurer so that he can deny coverage later
43.if a man wants with property insurance gets actual cash value minus the depreciation. How or where can he find this?
Insuarnce policy
By appraisers
By current market
44. for a policy to be enforced all of the following are wrong except
Into cocaine
Manic depression
Insurer agent not registered in one state where he sells insurance
The check of the insured bounced back
45. in liability insurance all of the following are presnt except
Co insurance
Aggregate limit
OCCURANCE LIMIT
Other value insurance
46. in the declartion page u wud find all of the following except
Full text of the policy exclusions
47. wat is not true abt modular policies?
It wil make a policy by itself wen different documents are added to it
48. wat happens when insurer cancels the policy?
49. wat is true abt nonadmitted assests
Cannot be converted to cash
50. There was a damage caused by mines
Mine subsidence is the answer
51. Read about other insurance provisions as well.
52. learn completed operations (the examples)
53. business operations(example)
54. which of these comes under statutes law
Workers compensation laws
55. vandalism comes under which coverage
Basic coverage
56. a person writes an article about another persons conduct badly. He publishes it what act willl this be
Libel (intentional tort)
57. breach of warranty shud be read( example)58.loss exposure survey is not the right way to identify los exposure why?
An important loss exposure can be overlooked
59.all the benefits for the various people involved or who consider risk management shud be read.
1) Why is Insurance known as a Transfer System.
Ans: The gives a Insured periodic premium and the insurer covers insured’s the loss
2) Why law of large numbers used
Ans: To predict the losses
3) All of them listed below are Ideally Insurable Except
Ans: Small heterogeneous exposures
4) Which statement is correct regarding Private Insurers.
Ans: Mutual insurance companies are owned by policy holders
5) which of the following is done by the state
Ans: Unemployment
6) All are Benefits of Insurance Except
Ans: Premiums paid by insured
7) What law of indemnity states
Ans: The Insured must not be financially in a better status than he was before the loss
8) A shop is damaged due to fire. The shop owner has a Business income insurance plan. He lost a income of 5000 dollars in this period and spent 15000 dollars to repair the shop. How much will the insurer pay.
Ans: 5000 dollars
9) A mechanic sets up stove at a house and when it was first used it causes fire accident. What type of liability
Ans: Completed operations liability
10) The Insured bought a photograph polishing solution which the shopkeeper said will protect the photograph. When the insured used it on a 5000 dollar photograph the photograph cracked.
Ans: Breach of Warranty
11) When the plumber came to fix a new sink he damaged the water pipe line. What liability is this.
Ans: Business Operation Liability
12) The insurance program in which only those citizen who meet the eligibility criteria can obtain is
Ans: Social Security Program (Old age plan)
13) The purpose of NAIC is
Ans: It creates the model law for the problem present
14) Why must the premium be Adequate
Ans: It must cover the loss, expenses and also the insurers nominal profit
15) The Law which says approval is required only when it is a certain percent above or below the previously filed rates
Ans: Flex rating Laws
16) What IRIS does
Ans: Develops financial ratios to detecting insurers overall condition
17) What is required by the agent to renew license
Ans: Must pass the exams conducted
18) E&S can also insure
Ans: Those with poor loss exposure
19) What is earned premium
Ans: amount that applies to the part of policy period already occurred
20) Which is a non-admitted assets
Ans: Office Furniture
21) They will give Admitted asset, loss reserve liability, unearned Premium Reserve liability and other liabilities. Find Policyholder surplus
23) They will give Incurred loss, Earned Premium, Written Premium, Incurred Underwritting expenses and Net investment income. Find loss ratio,expense ratio and Investment Income Ratio
24) Capacity Ratio is
Ans: Ratio of written premium to Policy Holder surplus
25) Responsibility of Principal to Agent
Ans: Must pay for the services
26) An agent collects premium on behalf of the Principal even if not mentioned in the contract
Ans: Implied Authority
27)An agent is
Ans: A legal representative of an insurance company
28)Which of the following is correct regarding Advertisement
Ans: Exclusive Agency has agents photo and insurance company name in its ad
29) An ABC agency said it wont handle a clients requirement. It appoint and supervises agents. What is it
Ans: Managing General Agency
30)A DEF agency gets commission based on the premium volume and profitability level
Ans: Contingent Commission
31) When something of value is given to make the client to buy the policy
Ans:Tie in sales
32) Advertising Liability applies when
a)misrepresentation of ad……..
b)copying slogans……..
c)……..
ANS was d)All of the above
33) Sam writes something bad about Tom in a news papers editorial and they are not true. Then it is
Ans: Intentional Tort
34) All are process of underwriting activities Except
Ans: Marketing the Policy
35) What is Schedule Rate
Ans: Many insured within rating class have loss characteristics that might not be fully reflected in class rates
36) Decentralization
Ans: Delegates extends authority to personnel in the field office
37) They will ask to find the Premium by giving rate/100dollars and the property insurance limit
38) An insurer want to know the financial status of the company which it is going to insure
Ans: Financial Rating Services
39) Hazard due to dishonest Tendencies
Ans: Moral Hazard
40) What is true regarding canceling of policy
Ans: The Insurer has to give notice before the specified amount of days to the insured
41) Who is a claimant
Ans: One who Submits a Claim on the insured’s policy
42) Who is public Adjuster
Ans: Someone who represents insured in claim
43) When Agreed Value is used
Ans: For Fine Art Properties
44) A step in Property Insurance claim
Ans: T check if insured has insurable interest
45) What statement is correct regarding damages
Ans: Compensatory damages is to compensate for the harm caused
46) Tom buys Policy from an agent Jack after agreeing the policy conditions and paid the premium.
a)Agreement………
b)Legal purpose………
c)Consideration…
Ans is d) All of the above
47) Declaration has
Ans: List of all Policies
48) Insurer cancels the policy which is of policy period six months after one month itself. the premium was 300 dollars. what is the pro rata refund
Ans: 250dollars
49) All about the structure of policies are correct except
Ans: Endorsement can be added to a modular policy to make it a self contained one
50) Transfer of rights and duties to other person
Ans: Assignment
51) Which of these is correct regarding Boiler and Machinery
Ans: Less likely to explosion and must be properly maintained
52) Damage due to graffiti, spray paint
a)Basic Plan b)Broad Plan c) Special Plan
Ans: is d) All of the above
53) For named peril the burden of proof is on
Ans: Insured
54) Which of these is an indirect loss
Ans: Lost Income and Increased Expense
55) Mortgagee is
Ans: One who lends money for real property
56) Mortgagee has all the rights except
a) Pay Client if insured didn’t b) to get notified c) May file the Claim
Ans: The d) option is the answer which I don’t remember
57) CGL covers all except
Ans: Loss which occurred due to Billboard fall
58) What are not generally covered
a) Damage of Sofa by bird b) Water Seepage c)……..
Ans: d) All of the above
59) What provision will pay reduced amount to the insured if property was underinsured
Ans: Insurance-to-value provision
60) Contract Law is a branch of
Ans: Civil Law
61) Each person limit $10000
Each occurrence Bodily Injury limit: $25000
Property Damage Limit: $15000
Court Orders Liability for Bodily Injury of the Injured Driver $19500
Property Liability $17000
How much will Insurer Pay
Ans: $25000 (Check it out)
62) First step of Risk Management
Ans: Identifying Losses
63) Risk Management is required because
Ans: All of the above
64) Loss frequency
Ans: Sees how often Loss occur
65) All are risk Management techniques except
a) Survey b) Flowchart c) Viewing Loss History
Ans: The d) option is the answer which I don’t remember
66) Insurer asks the insured to keep a fire extinguisher in his boat. Why?
Ans: Loss Reduction
67) Best technique which can be used where the loss exposure cannot be avoided, prevented or controlled
Ans: Insurance
1. What is civil law?
a.)government takes responsibility for prosecuting the wrongdoers.
b.) applies to wrongful acts that deem the society
c.) deals with a personal quarrel between two people.
2. Federal government deals with al the following except
a) Unemployment
b.) flood insurance
c.)crop insurance
d) retirement benefits for the elderly
3.) social security provides all the following benefits except
a.) medical benefits to the aged
b.) disability benefits to the aged.
c.) retirement benefits to workers
d.) medical care to elderly
4.) State government deals with one of the following
a.) Worker s compensation
b.) crop insurance
c.) flood insurance.
d.) social security program
5.) Formal enactments of federal, state and local legislative is referred to as
a.) statuary law
b.) common law
c.) constitutional law
6.) In property insurance, Carelessly taped electrical wiring is an example of
a.) cause of loss
b.) hazard
c.) peril
d.) Time element loss
Problem:
Given : Earned premium : $ 2,000,000
Written Premium : $2,000,000
Investment Income: $660,000
Incurred loss: $1,500,000
Underwriting Expenses: $ 200,000
7.) Calculate the loss ratio
.75
.1
.5
.35
8.) Calculate the expense ratio
.75
.10
.5
.33
9.) Calculate the Investment income
.33
.38
.10
.5
10.) Calculate the policy holder s surplus
11.) Given the net Underwriting gain or loss is $100,000. TO calculate the overall gain or loss which other data is necessary
1. Investment income2. Net Investment income gain or loss3. Overall income
12.) In the balance statement of an insurer which of the following will be present.
1. Admitted assests2. Expense3. Revenues4. Net Investment Income
13.)Jane works for XYZ insurance and in an automobile firm. She has a client John who buys a automobile from her. If she recommends him to buy XYZ insurance Which unfair trade practice is it?
1. Tie- in sales2. Rebating3. Some two more options
14.) Policy provision called Condition can be defined as
Any promise that qualifies an otherwise enforceable promise of the insurer.
Other three options dnt remember
15.) Why is a catastrophic claim like Recession not handled by insurance companies
1.) Because of the large number of consequences due to the catastrophic loss
2,) number of people involved are less
3.)
16.) John is 22 yr old, male , who walks only one km per day … His insurer( underwriter) says that this will be considered while deciding rating and will he will belong to the large grp of pple in this category.. which type of rating was he talking about
1. Class rating2. Judgemental rating3. Independent rating4. Experience rating
17.) which one of the following is true about modular policy ?
1.) It represents the package policy
Other options I dnt remember
18.) When will you have Adverse selection?
When the premium is low as compared to loss exposures.
19.) XYZ wanted to incorporate risk management in his house. Which is the intial risk management step ?
1. Identifying loss exposure 2. Analysis Loss exposure 3. Examining the feasibility of the risk management technique4. Implementing the risk management technique.
20.) ABC has a small retail shop . He buys property, liability, house owner insurance from XYZ insurance. Another insurer advices him that only buying insurance is not necessary, he should
implement risk management techniques as well. What are advantages he will have if he implements the risk management techniques?
1. he will achieve business goals
2. He can reduce risk and hence develop his business
3. He can reduce expenses by handling loss exposures
4. all the above
21.) After analysis of the loss exposures , what is the risk management step?
1. identifying loss exposure
2. Examining feasibility of the risk management techniques
3. implementing the risk management techniques
4. monitoring the risk management techniques
22.) Mary is the single parent and has to commute a long distance for work . There is no other proper mode of transport and she is having a very critical economic situation,She wants to buy a automobile to drop her children at school and also to commute to work. Which is the best risk management tech which she can follow.
1. Retention2. Insurance3. Avoidance4. Loss control
23.)Joseph takes a house, he is advised by his insurer to install a fire extinguisher in his house.Which risk control technique is he following by doing the same?
1. loss prevention
2.loss reduction
3. retention
4. avoidance
24.) What is the loss frequency ?
The number of losses which occurred in aperiod of time ( refer to definition) John takes house owner insurance frm ABC insurance agency and auto insurance from DEF agency.
25.) DEF advertises using the agents name and photo but mainly focuses on advertising the insurance company it represents what kind of agency is DEF
1. exclusive agency
2. independent agency
3 direct writing agency
26.) some information similarly given on ABC and asked which type of agency it is..
27.) some questions on state insurance regulators .. I dnt remember them exactly
28.) XYZ takes reinsurance with ABC cause there is no other way to continue doing business.. ACC to the AGREEMENT 50% of all the loss exposures will be reinsured by ABC. Which kind of reinsurance is it?
Treaty reinsurance
Facultative reinsurance
Two more options
29.) what is NAIC ? ..
Model law one option .. that is the answer.
30.) which one of the following is not private funds
Guaranty funds
Stocks
Mutual funds
Reciprocal funds
31.) According to continuing education laws for insurance representatives which one of the following is true
1.) the need to clear a written exam before renewing the license .
I dnt remember the other options..
Important notes
1. Plz follow 3rd edition book for ins212. Go through the glossary before the exam3. Be through with the examples . most examples are repeated from the book in
the exam4. Read the contents in the furnished inside the boxes5. Formulas highly important
1.Loss payable clause:
Ans:Secured lender and personal property
2. Idemnity
3.Provision not included in the claim settlement of liabilty insurance
Ans: Co-insurance
3.Insurance as transfer system
4.Law of large numbers
Ans: Predict future outcomes or losses
5.not insurable loss property
Ans: Property with small dollar value
6.Federal Govt Insurance
Ans: Crop and Flood
7.state Govt insurance Regulator
Ans: should prevent from excessive premium and inadequate returns and unfairly discriminatory
8. IRIS
Ans: Financial Ratios(To determine the financial status of the Insurer)
9.NAIC
Ans: Model Law
10. Rate Making system:
Ans :Actuarial Rate Making provides the rate for insurance
11.Excess and supply business
Ans: Provides insurance for poor experience
12. Broker
Ans: Represents the customer
13. Over all operating gain or loss (Formula0
14.unearned premiums (problems )
15.To calculate premium problem
16. wat are non admitted asserts
Ans: Office furnitures
17.Non admitted asserts
Ans:not easily converted to cash
18. the usage of fire extenguisher helps in
Ans: Loss Reduction
19:define Loss frequency
And: no of losses occurred in a given period
20. during hurricane lots of claims occur , which kind of adjuster will help the insurance company
Ans: I ndependant adjuster
21.capacity ratio (formula)
22.responsibilty of agent to principle
23.responsibilty of principle to agent
Ans: to pay the commission to the agent
24.Express authority
Ans: Gives binding coverage to the agent
25.Exclusive agency system
Ans: all of the above( don’t remember the options)
26.Independant agency system will receive wat kind of commission
Ans:Contingent Commission
27.Exclusive Agency advertisement
Ans: Can advertise about the agency and the company( the answer will contain the advertising using the photo of the owner)
28.underwriting activity :know the steps: questions will be like wat wats 1st step . 4th step etc)
29.Adverse Selection
Ans:Premium Low relative to loss exposure
30.standard Form
Ans: Insurance Advisory organisation develops the standard form
31. define faculative reinsurance
32.Define Treaty reinsurance
33;Morale hazard
Ans: I have insurance I need not be careful
34.Actual Cah value
Ans: Actual cash value includes depreciation
35.Modular Policy:
Ans: Modular policy consists of differents document none of which by itself forms a complete document
36. Contract law comes under
Ans:Civil Law
37.comman Law is other wise know as
Ans: Case Law
38.A teenager sprayed graffiti on the fence of the neighbour wat form of coverage does it come under
Ans:Basic form of coverage
39. Exclusions does not come under declarations page
40.The dispute between private parties comes under which law
Ans:Civil Law
41. A person tries to harm the reputation of the other by false advertising
Ans:Intentional tort
Statutory Liabilty
Ans: Worker’s compensation
42. wat is the first step in risk management
43. mortgagee:
Ans: cannot modify the coverage
44.public adjuster:
Ans: Represent the insured
45:which of the following is the best option;
Ans: capacity can be increased by reinsurance
46 the underwriters can determine The financial status of commercial insurance company by
Ans: Financial Rating / inspection report ( not sure)
47.wat is most importanly done in in the implementation step of Risk Management
Ans: To determine the costs of the risk (not sure again)
48: The agent is not given exclusive rights to collect premium but still he collects wat form of authority is this
![The Visual Development of GCC Plug-ins with GDE · The Visual Development of GCC Plug-ins with GDE ... [21]. Code trans- ... ine, in Section 5, the DB-dump output of several appli-if](https://static.documents.pub/doc/80x56/5b0794997f8b9ac90f8b5021/the-visual-development-of-gcc-plug-ins-with-visual-development-of-gcc-plug-ins-with.jpg)
