ASLI 320
ASLI 320
Study online at https://quizlet.com/_cxcsvx
1. The insurer's rights to recover and sell or a. Fiduciary rights.
otherwise dispose of insured property on b. Constructive rights.
which the insurer has paid a total loss are c. Catastrophe rights.
called D. Salvage rights.
2. Profit cycles in manufacturing and retail- A. Demand driven.
ing tend to be b. Inelastic.
c. Like the insurance cycle.
d. Shielded from supply shock.
3. Which one of the following statements a. Claim status reports are not vital to an insur-
concerning claim status reports is true? er because the reports are usually read only
by insurance department employees.
b. Claim status reports are not vital to an in-
surer because the reports are used only as a
method of illustrating work that needs to be
done by the claims adjuster.
c. Claim status reports are vital to an in-
surer because the reports provide work for
the claim representatives, rounding out their
written and verbal skills.
D. Claim status reports are vital to an insurer
because the reports advise the insurer how
the claim is progressing on a periodic basis.
4. Underwriting management arranges A. A group or portfolio of insureds.
treaty reinsurance to reinsure b. Insureds that do not meet underwriting
guidelines.
c. All insurance of the primary insurer.
d. Individual accounts.
5.
Page 1 of 15
, ASLI 320
ASLI 320
Study online at https://quizlet.com/_cxcsvx
As surplus lines intermediaries, Lloyd's a. Marketing programs for a broad range of
brokers have particular capabilities to per- specialized and unique risks
form their market function. Which one of b. Niche marketing expertise to gain a com-
the following describes one of these capa- petitive advantage
bilities? C. Knowing which syndicates and underwrit-
ers have expertise in the class of business for
which they are seeking coverage
d. Having reinsurance available for the ac-
counts they broker
6. Stable Insurance Group, a surplus lines a. Surplus lines insurers typically require
insurer, is considering granting binding MGAs to remit premiums as soon as they are
authority to a managing general agent collected rather than holding them and remit-
(MGA). In deciding whether to grant bind- ting them at a later time.
ing authority to an MGA, a surplus lines b. An insurer generally seeks the same types
insurer will assess several factors. Which of financial guarantees from all MGAs with
one of the following statements is correct which it contracts.
with respect to an MGA's financial condi- C. The MGA's financial condition is impor-
tion? tant because the insurer assumes a credit
risk when extending binding authority and
responsibility for policy issuance.
d. Credit risk increases when the surplus lines
MGA remits premiums to the insurer based
on its own booking records rather than those
of the insurer.
7. Which one of the following statements is a. Because increased limits losses are typically
correct with respect to increased limits well documented, they provide excellent data
above the basic coverage limits? credibility.
B. Charges to increase commercial liability in-
surance limits frequently exceed 100 percent
of the charge for basic coverage limits.
Page 2 of 15
ASLI 320
Study online at https://quizlet.com/_cxcsvx
1. The insurer's rights to recover and sell or a. Fiduciary rights.
otherwise dispose of insured property on b. Constructive rights.
which the insurer has paid a total loss are c. Catastrophe rights.
called D. Salvage rights.
2. Profit cycles in manufacturing and retail- A. Demand driven.
ing tend to be b. Inelastic.
c. Like the insurance cycle.
d. Shielded from supply shock.
3. Which one of the following statements a. Claim status reports are not vital to an insur-
concerning claim status reports is true? er because the reports are usually read only
by insurance department employees.
b. Claim status reports are not vital to an in-
surer because the reports are used only as a
method of illustrating work that needs to be
done by the claims adjuster.
c. Claim status reports are vital to an in-
surer because the reports provide work for
the claim representatives, rounding out their
written and verbal skills.
D. Claim status reports are vital to an insurer
because the reports advise the insurer how
the claim is progressing on a periodic basis.
4. Underwriting management arranges A. A group or portfolio of insureds.
treaty reinsurance to reinsure b. Insureds that do not meet underwriting
guidelines.
c. All insurance of the primary insurer.
d. Individual accounts.
5.
Page 1 of 15
, ASLI 320
ASLI 320
Study online at https://quizlet.com/_cxcsvx
As surplus lines intermediaries, Lloyd's a. Marketing programs for a broad range of
brokers have particular capabilities to per- specialized and unique risks
form their market function. Which one of b. Niche marketing expertise to gain a com-
the following describes one of these capa- petitive advantage
bilities? C. Knowing which syndicates and underwrit-
ers have expertise in the class of business for
which they are seeking coverage
d. Having reinsurance available for the ac-
counts they broker
6. Stable Insurance Group, a surplus lines a. Surplus lines insurers typically require
insurer, is considering granting binding MGAs to remit premiums as soon as they are
authority to a managing general agent collected rather than holding them and remit-
(MGA). In deciding whether to grant bind- ting them at a later time.
ing authority to an MGA, a surplus lines b. An insurer generally seeks the same types
insurer will assess several factors. Which of financial guarantees from all MGAs with
one of the following statements is correct which it contracts.
with respect to an MGA's financial condi- C. The MGA's financial condition is impor-
tion? tant because the insurer assumes a credit
risk when extending binding authority and
responsibility for policy issuance.
d. Credit risk increases when the surplus lines
MGA remits premiums to the insurer based
on its own booking records rather than those
of the insurer.
7. Which one of the following statements is a. Because increased limits losses are typically
correct with respect to increased limits well documented, they provide excellent data
above the basic coverage limits? credibility.
B. Charges to increase commercial liability in-
surance limits frequently exceed 100 percent
of the charge for basic coverage limits.
Page 2 of 15
