UGA RMIN 4000 EDMUNDS EXAM 1 ACTUAL
2026/2027 MOST RECENT EXAM ACTUAL COMPLETE
REAL EXAM QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) ALREADY GRADED A+ |
LATEST VERSION!!
What are some methods used for paying losses when
financing risks? - ANSWER-Current net income, unfunded
reserve, funded reserve, and credit line
current net income - ANSWER-losses are treated as
current expenses (if a loss is too big, firm may have to
liquidate assets)
,unfunded reserve - ANSWER-bookkeeping account that is
charged with actual or expected losses from a given
exposure
funded reserve - ANSWER-funds set aside for losses
Why could a funded reserve not be ideal? - ANSWER-
because it is not tax deductible and money could be used
elsewhere in the firm
captive insurer - ANSWER-an insurer owned by a parent
firm for the purpose of insuring the parent firm's loss
exposures (lower costs, easy to obtain insurance, and
possible tax advantages)
, Can a captive insurer have more than one parent? -
ANSWER-yes
self-insurance - ANSWER-planned retention by which part
or all of a given loss exposure is retained by the firm
Risk Retention Group (RRG) - ANSWER-a group captive
that can write any type of liability coverage except
employers' liability, workers compensation, and personal
lines (could save or have possible higher costs)
noninsurance transfers - ANSWER-methods other than
insurance by which a pure risk and its potential financial
2026/2027 MOST RECENT EXAM ACTUAL COMPLETE
REAL EXAM QUESTIONS AND CORRECT ANSWERS
(VERIFIED ANSWERS) ALREADY GRADED A+ |
LATEST VERSION!!
What are some methods used for paying losses when
financing risks? - ANSWER-Current net income, unfunded
reserve, funded reserve, and credit line
current net income - ANSWER-losses are treated as
current expenses (if a loss is too big, firm may have to
liquidate assets)
,unfunded reserve - ANSWER-bookkeeping account that is
charged with actual or expected losses from a given
exposure
funded reserve - ANSWER-funds set aside for losses
Why could a funded reserve not be ideal? - ANSWER-
because it is not tax deductible and money could be used
elsewhere in the firm
captive insurer - ANSWER-an insurer owned by a parent
firm for the purpose of insuring the parent firm's loss
exposures (lower costs, easy to obtain insurance, and
possible tax advantages)
, Can a captive insurer have more than one parent? -
ANSWER-yes
self-insurance - ANSWER-planned retention by which part
or all of a given loss exposure is retained by the firm
Risk Retention Group (RRG) - ANSWER-a group captive
that can write any type of liability coverage except
employers' liability, workers compensation, and personal
lines (could save or have possible higher costs)
noninsurance transfers - ANSWER-methods other than
insurance by which a pure risk and its potential financial
