INS21 Assignment 1

6 Questions | By Jennifer49519 | Updated: Jan 29, 2013 | Attempts: 552

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Insurance: What is it?

Questions and Answers

1.

All of the following are characteristics of an ideally insurable exposure, EXCEPT:
- A.
  
  Losses that are accidental
- B.
  
  Losses that are definite and measurable
- C.
  
  Losses that are small
- D.
  
  Losses that are economically feasible to insure
Correct Answer
C. Losses that are small
2.

Which is not a benefit of insurance?
- A.
  
  Opportunity Costs
- B.
  
  Payment of Losses
- C.
  
  Reduction of Social Burdens
- D.
  
  Support for Credit
Correct Answer
A. Opportunity Costs
3.

Jim’s life insurance policy has been in effect for quite a number of years. The insurer allows him to borrow against the cash value of the policy due to the terms of the policy. What type of life insurance policy is this?
- A.
  
  Whole
- B.
  
  Term
- C.
  
  Universal
- D.
  
  Cash
Correct Answer
C. Universal
4.

The process of determining customers’ needs and then promoting and selling products or services to meet those needs is which type of insurance operation:
- A.
  
  Accounting
- B.
  
  Marketing
- C.
  
  Claims
- D.
  
  Underwriting
Correct Answer
B. Marketing
5.

Jim is going to retire from ABC Insurance Corp within the next year. Jim’s retirement is an example of :
- A.
  
  A personnel loss exposure
- B.
  
  A liability loss exposure
- C.
  
  A personal loss exposure
- D.
  
  A property loss exposure
Correct Answer
A. A personnel loss exposure
6.

The day after Jim retired his home flooded. He called his insurance company and made a claim. This is an example of:
- A.
  
  A personnel loss exposure
- B.
  
  A liability loss exposure
- C.
  
  A personal loss exposure
- D.
  
  A property loss exposure
Correct Answer
D. A property loss exposure

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Current Version
Jan 29, 2013

Quiz Edited by
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Sep 06, 2011

Quiz Created by
Jennifer49519

INS21 Assignment 1

All of the following are characteristics of an ideally insurable exposure, EXCEPT:

Which is not a benefit of insurance?

Jim’s life insurance policy has been in effect for quite a number of years. The insurer allows him to borrow against the cash value of the policy due to the terms of the policy. What type of life insurance policy is this?

The process of determining customers’ needs and then promoting and selling products or services to meet those needs is which type of insurance operation:

Jim is going to retire from ABC Insurance Corp within the next year. Jim’s retirement is an example of :

The day after Jim retired his home flooded. He called his insurance company and made a claim. This is an example of: