Ins 21 - Quiz 1

35 Questions | Total Attempts: 9280

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Ins 21 - Quiz 1

INS 21 -Chapter 1,2,3 QUIZ 1


Questions and Answers
  • 1. 
    The Process of making and implementing decisions to handle loss exposure is known as __________
    • A. 

      Loss Reduction Measures

    • B. 

      Loss Prevention Measures

    • C. 

      Risk Management

    • D. 

      None of the Above.

  • 2. 
    An insurance policy is a contract that states the rights and duties of
    • A. 

      The insured and insurer and agent.

    • B. 

      The insured and the insurer.

    • C. 

      The insured and the agent.

    • D. 

      The insured and other third parties.

  • 3. 
     Transferring the costs of losses to an insurer would be unnecessary, if there were no
    • A. 

      Exposures to loss

    • B. 

      Civil courts.

    • C. 

      Agents.

    • D. 

      Reinsurance.

  • 4. 
    Insurers provide insurance for Potential Financial Consequences of Loss Exposures that have following Characters
    • A. 

      Loss Exposure is subject to accidental loss from the insured’s standpoint.

    • B. 

      Loss Exposure is economically infeasible to insure.

    • C. 

      Loss is subject to a loss that would simultaneously affect many other similar Loss Exposure.

    • D. 

      Both b & c

  • 5. 
    Stock Insurers comes under
    • A. 

      Federal Government Insurance Programs

    • B. 

      State Government Insurance Programs

    • C. 

      Private Insurers

    • D. 

      None of the Above

  • 6. 
    Personnel Loss Exposures is any condition or situation that presents the possibility of financial loss to ____________
    • A. 

      Family

    • B. 

      Business

    • C. 

      Individual

    • D. 

      Both a & c

  • 7. 
    Net Income Loss is called as_____
    • A. 

      Reduction in Revenue, an decrease in expenses

    • B. 

      Reduction in Revenue, an increase in expenses

    • C. 

      Reduction in Revenue, an decrease in savings

    • D. 

      Reduction in Revenue, an increase in savings

  • 8. 
    Making a profit for the insurance company is a major objective for which one of the
    • A. 

      Underwriting department

    • B. 

      Finance department

    • C. 

      Marketing department

    • D. 

      Claims department

  • 9. 
    Insurance Rates should reflect the Insured’s Loss Exposure (True/False)
    • A. 

      True

    • B. 

      False

  • 10. 
    Benefits of Insurance Include:
    • A. 

      Satisfying Legal Requirement

    • B. 

      Reducing Social Burdens

    • C. 

      Reducing the insured’s financial uncertainty

    • D. 

      All of the above

  • 11. 
    _____________ Insurance is intended to protect people who may be responsible for injury to someone else or damage to someone’s property.
    • A. 

      Property Insurance

    • B. 

      Liability Insurance

    • C. 

      Life Insurance

    • D. 

      Health Insurance

  • 12. 
    Term Insurance Provides Coverage for specified period,such as ten or twenty years,with cash values(True/False)
    • A. 

      True

    • B. 

      False

  • 13. 
    ___________ Provides Life Insurance Protection and a savings Component.
    • A. 

      Term Insurance

    • B. 

      Whole Life Insurance

    • C. 

      Universal Life Insurance

    • D. 

      Disability Income Insurance

  • 14. 
    _____________   Covers Liability Loss Exposures arising from a business Organization’s Premises and Operations, its products, or its completed work.
    • A. 

      Professional Liability Insurance

    • B. 

      Commercial General Liability Insurance

    • C. 

      Auto Liability Insurance

    • D. 

      None of the above

  • 15. 
     Disability Insurance is  primarily income replacement insurance that Pays _____________
    • A. 

      Weekly Benefits

    • B. 

      Monthly Benefits

    • C. 

      Weekly Benefits or Monthly Benefits

    • D. 

      None of the Above

  • 16. 
    Which is the below one provding most of the property & liability insurance in US?
    • A. 

      Private insurer

    • B. 

      Stock insurance companies

    • C. 

      Mutual insurance companies

    • D. 

      Reciprocal insurance exchange

  • 17. 
    Identify the Insurance type, that there main purpose for insurance formed.i.e, "To Earn profit for its individual investors ("Names") and its corporate investors.
    • A. 

      Stock insurer

    • B. 

      Mutual insurer

    • C. 

      Reciprocal insurer

    • D. 

      Lloyd's of London

  • 18. 
    The process by which a mutual insurer, which is owned by its policy holders become stock company, which is then owned by its stockholders called,
    • A. 

      Mutual Insurer

    • B. 

      Demutualization

    • C. 

      Mutual insurer

    • D. 

      Reciprocal insurer

  • 19. 
    Lloyds belongs to one of major groups called
    • A. 

      Subscriber

    • B. 

      Syndicates

    • C. 

      Inter insurance exchange

    • D. 

      Demutualization

  • 20. 
    Expansion of NAIC
    • A. 

      National Association of Insurance Company

    • B. 

      National Association of Insurance Commodity

    • C. 

      National Association of Insurance Commissioners

    • D. 

      None of the Above.

  • 21. 
    If the Rate is $15 and Having 10 Exposure units, calculate Premium.?
    • A. 

      $34

    • B. 

      $1.5

    • C. 

      $100

    • D. 

      $150

  • 22. 
    Primary Objectives of Insurance Regulation are
    • A. 

      Rate Regulation

    • B. 

      Solvency Surveillance

    • C. 

      Consumer protection

    • D. 

      All of the Above

  • 23. 
    A person who uses complex mathematical methods and technology to analyze loss data and other statistics and to develop systems for determining insurance rates. Who is it?
    • A. 

      Underwriter

    • B. 

      Regulator

    • C. 

      Actuary

    • D. 

      All of the Above.

  • 24. 
    Excess and surplus lines insurance is usually written by whom?
    • A. 

      Admitted insurers

    • B. 

      Non-Admitted insurers

    • C. 

      Licensed insurers

    • D. 

      None of the Above

  • 25. 
    Identify the below one is not related to State Government Insurance Programs?
    • A. 

      Workers compensation

    • B. 

      Unemployment insurance programs

    • C. 

      Automobile insurance plans

    • D. 

      Lloyd's of London