John is an insurance claim representative. He is attempting to verify that a claim is covered in a
situation where an insured claimed her diamond necklace was missing. The questions John should ask
to confirm that loss to the necklace is covered include all of the following, EXCEPT
Does the insured have an insurable interest in the missing diamond necklace?
Do any additional coverages, endorsements, or coverage limitations apply?
What is the insured's residence address?
Is the cause of loss covered under the policy?
Six months after switching to user-based auto insurance, Jacob was advised that he did not earn any
premium reduction due to his frequent braking and lane changing. Which one of the following devices
would provide this information to Jacob's insurance company?
Telematics device
Smart camera
Radar system
Driver assistance system
Molly is shopping for personal auto liability insurance for her new car. She has asked for a quote at the
basic limit of $50,000 per accident and an option with a $1 million per accident limit. Molly has been
advised that the basic limits rate is $400 and that an increased limits factor of 1.75 would be applied
for the $1 million limit. What is the rate for the $1 million limit?
$475
$575
$700
$1,100
Which one of the following statements is correct regarding the claims department structure?
Because claims are an insurer's largest expense, the quality of a claims department's
performance is evaluated solely on profitability measures.
Usually, a senior claims officer heads the claim organization and reports to the chief
executive officer, the chief financial officer, or the chief underwriting officer.
Insurers use the services of public adjusters when their staff claims representatives are too
busy to handle all claims themselves.
Typically, insurers use independent adjusters to settle all claims that require scene
investigation or damage inspection.
To analyze the growth or decrease in an insurer's portfolio size at a particular point in time, the
portfolio manager will analyze the
New business count.
Retention rate.
Risk profile analysis.
Policies in force
, ALL Insurance is a commercial lines insurer that targets small to middle market accounts. It has been
able to achieve profitable growth by meeting all of the property and liability coverage needs of
accounts in that market. In order to meet the growing need for cyber risk insurance, ALL Insurance has
decided work with Cyber Re. As ALL Insurance tries to expand its expertise with this new product,
Cyber Re can differentiate itself as a collaborator by doing which one of the following?
Meeting legal and regulatory requirements
Providing technical assistance with underwriting and pricing
Offering the lowest rates
Providing broad coverage and high limits
A commercial insurer has successfully marketed businessowners coverage in its region through local
exclusive agents. The insurer is now trying to expand its market into more rural areas of the state.
Which one of the following distribution systems is likely the most cost effective for this expansion
effort?
Direct writer agent
Regional broker
Independent agent
Surplus lines broker
Julie is investigating a workers compensation claim brought by Alan. Alan is a painting contractor who
was seriously injured when he fell off a ladder at a job site. None of the other workers at the job site
observed the fall, and there is no indication that the ladder was damaged. Which one of the following
Internet of Things (IoT) devices could help Julie reconstruct what happened at the job location by
providing data on Alan's work environment, habits, and health?
Wearable sensor tag
Telematics device
Robot
High-definition camera
Which one of the following correctly explains why the value chain for insurers looks very different from
the value chains for other businesses?
The value chain for insurers looks different because they are non-profit entities.
The value chain for insurers looks different because they are federally regulated.
The value chain for insurers looks different because they produce intangible products.
The value chain for insurers looks different because they are usually owned by policyholders
Underwriters ensure the adequacy of policyholders surplus by
Growing their book of business.
Selecting accounts with large exposures.
Making coverage recommendations.
Adhering to underwriting guidelines
situation where an insured claimed her diamond necklace was missing. The questions John should ask
to confirm that loss to the necklace is covered include all of the following, EXCEPT
Does the insured have an insurable interest in the missing diamond necklace?
Do any additional coverages, endorsements, or coverage limitations apply?
What is the insured's residence address?
Is the cause of loss covered under the policy?
Six months after switching to user-based auto insurance, Jacob was advised that he did not earn any
premium reduction due to his frequent braking and lane changing. Which one of the following devices
would provide this information to Jacob's insurance company?
Telematics device
Smart camera
Radar system
Driver assistance system
Molly is shopping for personal auto liability insurance for her new car. She has asked for a quote at the
basic limit of $50,000 per accident and an option with a $1 million per accident limit. Molly has been
advised that the basic limits rate is $400 and that an increased limits factor of 1.75 would be applied
for the $1 million limit. What is the rate for the $1 million limit?
$475
$575
$700
$1,100
Which one of the following statements is correct regarding the claims department structure?
Because claims are an insurer's largest expense, the quality of a claims department's
performance is evaluated solely on profitability measures.
Usually, a senior claims officer heads the claim organization and reports to the chief
executive officer, the chief financial officer, or the chief underwriting officer.
Insurers use the services of public adjusters when their staff claims representatives are too
busy to handle all claims themselves.
Typically, insurers use independent adjusters to settle all claims that require scene
investigation or damage inspection.
To analyze the growth or decrease in an insurer's portfolio size at a particular point in time, the
portfolio manager will analyze the
New business count.
Retention rate.
Risk profile analysis.
Policies in force
, ALL Insurance is a commercial lines insurer that targets small to middle market accounts. It has been
able to achieve profitable growth by meeting all of the property and liability coverage needs of
accounts in that market. In order to meet the growing need for cyber risk insurance, ALL Insurance has
decided work with Cyber Re. As ALL Insurance tries to expand its expertise with this new product,
Cyber Re can differentiate itself as a collaborator by doing which one of the following?
Meeting legal and regulatory requirements
Providing technical assistance with underwriting and pricing
Offering the lowest rates
Providing broad coverage and high limits
A commercial insurer has successfully marketed businessowners coverage in its region through local
exclusive agents. The insurer is now trying to expand its market into more rural areas of the state.
Which one of the following distribution systems is likely the most cost effective for this expansion
effort?
Direct writer agent
Regional broker
Independent agent
Surplus lines broker
Julie is investigating a workers compensation claim brought by Alan. Alan is a painting contractor who
was seriously injured when he fell off a ladder at a job site. None of the other workers at the job site
observed the fall, and there is no indication that the ladder was damaged. Which one of the following
Internet of Things (IoT) devices could help Julie reconstruct what happened at the job location by
providing data on Alan's work environment, habits, and health?
Wearable sensor tag
Telematics device
Robot
High-definition camera
Which one of the following correctly explains why the value chain for insurers looks very different from
the value chains for other businesses?
The value chain for insurers looks different because they are non-profit entities.
The value chain for insurers looks different because they are federally regulated.
The value chain for insurers looks different because they produce intangible products.
The value chain for insurers looks different because they are usually owned by policyholders
Underwriters ensure the adequacy of policyholders surplus by
Growing their book of business.
Selecting accounts with large exposures.
Making coverage recommendations.
Adhering to underwriting guidelines
