Ins 21 - Quiz 1
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INS 21 -Chapter 1,2,3 QUIZ 1
- 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
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