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LM1 CII - Chapter 1 IF2 Previous Exam questions LM1 - Glossary Ce
Teacher 71 terms 201 terms 112 terms 25
cliff_Rosasi Preview BloodyRosie Preview madeleinebell22 Preview
Practice questions for this set
Learn 1 /7 Study with Learn
The calculation of what involves the use of the law of large numbers?
Choose an answer
1 Pooling of risks 2 Sanctions
3 Equitable premiums 4 Solvency margins
Don't know?
Terms in this set (100)
By sharing information about their risk, the insured Good faith
satisfies which obligation?
The proximate cause of a loss will always be the Dominant cause
Which insurance principle gives an insurer the right to Contribution
call upon other insurers to share in the settling of a
claim?
, A building valued at £250,000 is jointly owned by Karen Karen's insurer is liable for £22,000 and Terry's for £33,000.
and Terry, who each individually arrange insurance on it.
Karen insures the building for £100,000, whilst Terry
insures it for £150,000. If a valid claim of £55,000 occurs
how much is each insurer liable to pay?
An insurer arranges for a policyholder's car to be Subrogation
repaired following damage by a negligent third party
motorist. Under which insurance principle can the
insurer recover the paid claim?
Which insurance principle ensures that in the event of a Indemnity
loss the insured is placed in the same financial position
as he was immediately prior to the loss?
The protection of jobs is classed as which type of A secondary function of insurance only
function of insurance?
Which type of risk arises from a cause outside the Fundamental risk
control of any one individual and affects a large
number of people?
For an individual, which class of risk is always Speculative risk
uninsurable?
The subjective judgment that individuals or Risk perception
organisations make about the characteristics and
severity of a risk is known as
In relation to insurance, a peril is An event that may give rise to a loss
The calculation of what involves the use of the law of Equitable premiums
large numbers?
What is the most likely impact, if any, on a commercial The reputation of the insurer will be affected
insurer if it fails to implement an effective claims-
handling process?
A proposer for an insurance policy who has previously Poor moral hazard
made fraudulent insurance claims would be classed by
an underwriter as a
Where the premiums of the many pay the losses of the Pooling of risks
few, this is known as
What is the basic purpose of insurance? To transfer risks
What class of insurance protects the policyholder from Political risks
the nationalisation of their overseas assets by a foreign
government?
Cargo carried by an airline will usually be covered Marine
under what class of business?
100% Correct Answers graded A+ Guaranteed Success!!
Leave the first rating
Save
Students also studied
Flashcard sets Study guides
LM1 CII - Chapter 1 IF2 Previous Exam questions LM1 - Glossary Ce
Teacher 71 terms 201 terms 112 terms 25
cliff_Rosasi Preview BloodyRosie Preview madeleinebell22 Preview
Practice questions for this set
Learn 1 /7 Study with Learn
The calculation of what involves the use of the law of large numbers?
Choose an answer
1 Pooling of risks 2 Sanctions
3 Equitable premiums 4 Solvency margins
Don't know?
Terms in this set (100)
By sharing information about their risk, the insured Good faith
satisfies which obligation?
The proximate cause of a loss will always be the Dominant cause
Which insurance principle gives an insurer the right to Contribution
call upon other insurers to share in the settling of a
claim?
, A building valued at £250,000 is jointly owned by Karen Karen's insurer is liable for £22,000 and Terry's for £33,000.
and Terry, who each individually arrange insurance on it.
Karen insures the building for £100,000, whilst Terry
insures it for £150,000. If a valid claim of £55,000 occurs
how much is each insurer liable to pay?
An insurer arranges for a policyholder's car to be Subrogation
repaired following damage by a negligent third party
motorist. Under which insurance principle can the
insurer recover the paid claim?
Which insurance principle ensures that in the event of a Indemnity
loss the insured is placed in the same financial position
as he was immediately prior to the loss?
The protection of jobs is classed as which type of A secondary function of insurance only
function of insurance?
Which type of risk arises from a cause outside the Fundamental risk
control of any one individual and affects a large
number of people?
For an individual, which class of risk is always Speculative risk
uninsurable?
The subjective judgment that individuals or Risk perception
organisations make about the characteristics and
severity of a risk is known as
In relation to insurance, a peril is An event that may give rise to a loss
The calculation of what involves the use of the law of Equitable premiums
large numbers?
What is the most likely impact, if any, on a commercial The reputation of the insurer will be affected
insurer if it fails to implement an effective claims-
handling process?
A proposer for an insurance policy who has previously Poor moral hazard
made fraudulent insurance claims would be classed by
an underwriter as a
Where the premiums of the many pay the losses of the Pooling of risks
few, this is known as
What is the basic purpose of insurance? To transfer risks
What class of insurance protects the policyholder from Political risks
the nationalisation of their overseas assets by a foreign
government?
Cargo carried by an airline will usually be covered Marine
under what class of business?
