CPCU 520 (The Institutes) Exam | Questions with
100% Correct Answers | Verified | Latest Update
2026/2027
Save
Practice questions for this set
Learn 1 /7 Study using Learn
A factor applied to the rates for basic limits to arrive at an appropriate rate for
higher limits.
Choose an answer
1 Cost Leadership 2 Increased limit factor
National Association of Insurance
3 Telematics 4
Commissioners (NAIC)
Don't know?
Terms in this set (100)
, Cost Leadership A business-level strategy through which a company
seeks cost efficiencies in all operational areas.
Underwriting T he process of selecting insureds, pricing
coverage, determining insurance policy terms and
conditions, and then monitoring the underwriting
decisions made.
Loss ratio A ratio that measures losses and loss adjustment
expenses against earned premiums and that
reflects the percentage of premiums being
consumed by losses.
Premium Audit Methodical examination of a policyholder's
operations, records, and books of account to
determine the actual exposure units and premium
for insurance coverages already provided.
National Association of Insurance An association of insurance commissioners from
Commissioners (NAIC) the 50 U.S. states, the District of Columbia, and the
five U.S. territories and possessions, whose
purpose is to coordinate insurance regulation
activities among the various state insurance
departments.
Model law A document drafted by the NAIC, in a style similar
to a state statute, that reflects the NAIC's proposed
solution to a given problem or issue and provides a
common basis to the states for drafting laws that
affect the insurance industry. Any state may choose
to adopt the model bill or adopt it with
modifications.
100% Correct Answers | Verified | Latest Update
2026/2027
Save
Practice questions for this set
Learn 1 /7 Study using Learn
A factor applied to the rates for basic limits to arrive at an appropriate rate for
higher limits.
Choose an answer
1 Cost Leadership 2 Increased limit factor
National Association of Insurance
3 Telematics 4
Commissioners (NAIC)
Don't know?
Terms in this set (100)
, Cost Leadership A business-level strategy through which a company
seeks cost efficiencies in all operational areas.
Underwriting T he process of selecting insureds, pricing
coverage, determining insurance policy terms and
conditions, and then monitoring the underwriting
decisions made.
Loss ratio A ratio that measures losses and loss adjustment
expenses against earned premiums and that
reflects the percentage of premiums being
consumed by losses.
Premium Audit Methodical examination of a policyholder's
operations, records, and books of account to
determine the actual exposure units and premium
for insurance coverages already provided.
National Association of Insurance An association of insurance commissioners from
Commissioners (NAIC) the 50 U.S. states, the District of Columbia, and the
five U.S. territories and possessions, whose
purpose is to coordinate insurance regulation
activities among the various state insurance
departments.
Model law A document drafted by the NAIC, in a style similar
to a state statute, that reflects the NAIC's proposed
solution to a given problem or issue and provides a
common basis to the states for drafting laws that
affect the insurance industry. Any state may choose
to adopt the model bill or adopt it with
modifications.
