INSR 310 LATEST UPDATED 2026 QUESTIONS AND
ANSWERS SURE A+
✔✔Control and Prevention - ✔✔what tool of risk management should you use: low
severity and high frequency
✔✔Transfer - ✔✔what tool of risk management should you use: high severity and low
frequency
✔✔Avoid and Control - ✔✔what tool of risk management should you use: high severity
and high frequency
✔✔you are forced to take risk and not insuring the risk
"self insurance" - ✔✔What does it mean to retain a risk?
✔✔Insured pays a certain amount of loss and insurance company pays the rest -
✔✔How does a deductible work?
✔✔only when it is more cost effective to retain it than transfer it or you can't transfer the
risk - ✔✔When should you retain a risk?:
, ✔✔sufficient number of exposures
capable administration, planning, staffing
firm management must be willing and able to pay claims and losses - ✔✔What is
necessary for effective self insurance (retention)?
✔✔Tax deductibility of Premiums Paid
Prior organizational expertise
Disinterested "Third Party" Administration
Transfer of Risk (Less risk to firm) - ✔✔What are the advantages of a professional
insurance company for business?
✔✔select agent or broker
select insurance company
select policy/ies for your needs
select policy options/features - ✔✔What is the insurance purchase decision process?
✔✔Captive - ✔✔wholly owned insurance subsidiary of a non-insurance parent company
✔✔Risk Retention Group - ✔✔owner controlled insurance company that follows federal
regulations to write liability portions for all or any portion of exposures for group
members engaged in similar or related business activities
✔✔life/health vs property/liability
personal vs commercial
private vs public
voluntary vs involuntary
admitted markets vs excess/surplus lines - ✔✔What are common classifications in the
insurance industry?
✔✔stock companies
mutuals
reciprocals
Lloyd's Associations - ✔✔What are the types of private insurance companies?
✔✔stock companies - ✔✔owned by stockholders (who do NOT have to buy policies)
✔✔mutuals - ✔✔owned by policyholders and have at "at cost" advantage
ANSWERS SURE A+
✔✔Control and Prevention - ✔✔what tool of risk management should you use: low
severity and high frequency
✔✔Transfer - ✔✔what tool of risk management should you use: high severity and low
frequency
✔✔Avoid and Control - ✔✔what tool of risk management should you use: high severity
and high frequency
✔✔you are forced to take risk and not insuring the risk
"self insurance" - ✔✔What does it mean to retain a risk?
✔✔Insured pays a certain amount of loss and insurance company pays the rest -
✔✔How does a deductible work?
✔✔only when it is more cost effective to retain it than transfer it or you can't transfer the
risk - ✔✔When should you retain a risk?:
, ✔✔sufficient number of exposures
capable administration, planning, staffing
firm management must be willing and able to pay claims and losses - ✔✔What is
necessary for effective self insurance (retention)?
✔✔Tax deductibility of Premiums Paid
Prior organizational expertise
Disinterested "Third Party" Administration
Transfer of Risk (Less risk to firm) - ✔✔What are the advantages of a professional
insurance company for business?
✔✔select agent or broker
select insurance company
select policy/ies for your needs
select policy options/features - ✔✔What is the insurance purchase decision process?
✔✔Captive - ✔✔wholly owned insurance subsidiary of a non-insurance parent company
✔✔Risk Retention Group - ✔✔owner controlled insurance company that follows federal
regulations to write liability portions for all or any portion of exposures for group
members engaged in similar or related business activities
✔✔life/health vs property/liability
personal vs commercial
private vs public
voluntary vs involuntary
admitted markets vs excess/surplus lines - ✔✔What are common classifications in the
insurance industry?
✔✔stock companies
mutuals
reciprocals
Lloyd's Associations - ✔✔What are the types of private insurance companies?
✔✔stock companies - ✔✔owned by stockholders (who do NOT have to buy policies)
✔✔mutuals - ✔✔owned by policyholders and have at "at cost" advantage
