ARe 320 Practice Test
ARe 320 Practice Test
Study online at https://quizlet.com/_bpzt5x
1. TOP Insurance is a property-casualty insurer writing Increase its reinsurance
all primary lines of insurance coverage. A large por- protection
tion of its invested assets are in common stocks, in-
cluding those of its subsidiaries and affiliated com-
panies. Which one of the following would help TOP
Insurance to guard against simultaneous losses in its
investments and underwriting operations?
2. Which one of the following statements regarding prop- Lightning damage to a
erty exposed to loss is true? tree is an example of a real
property loss exposure
3. A new marketing program has led to a period of rapid Surplus Relief
growth for Goshen Insurance. The insurer would like
to continue to grow its book of business, so manage-
ment has decided to use reinsurance to help with its
legal and regulatory compliance. Reinsurance can help
Goshen Insurance with this goal by providing which
one of the following?
4. Taunton Insurance is seeking a collaborative relation- Sharing predictive models
ship with a reinsurer. It needs help setting treat limits
and determining the probability of unsustainable loss-
es stemming from catastrophes. A reinsurer can col-
laborate with Goshen Insurance to meet these needs
by
5. Austin is considering purchasing a watercraft for his The size of the watercraft
family. A friend who also owns a watercraft advised
Austin that insurance coverage for the watercraft may
be provided under his homeowners or personal auto
policy. Which one of the following will best determine
Page 1 of 11
, ARe 320 Practice Test
ARe 320 Practice Test
Study online at https://quizlet.com/_bpzt5x
if the watercraft can be covered under one of these
policies, or if Austin will need to purchase separate
personal watercraft insurance?
6. Liability for completed operations is so similar to which Products liability
one of the following types of liability exposures that
the two are often treated as components of one loss
exposure?
7. Jameson Enterprises faces risks based on their di- Coverage A
rectors and officers, their employment practices, and
their fiduciary duties. Two of the directors have claims
against them for acts they may be responsible for
in their roles as directors. Jameson is not permit-
ted to provide indemnification to its directors or offi-
cers. These claims would most likely be covered under
which one of the following insuring agreements of a
D&O liability policy?
8. During the last five years, Insurance Company has in- Analyze this trend carefully,
creased its total policies in force at substantially higher because it could indicate a
rates than originally anticipated. Which one of the fol- threat or an opportunity
lowing best describes how Insurance Company should
react to this?
9. All of the following are risk control measures for Proper training for their
Grant Plumbing Supply Company's premises liability, deliver drivers who make
EXCEPT: bulk deliveries to large
customers
10. An upcoming commercial specialty risk assessment Diversification
will concentrate on types of coverages and concerns
that Westlake Re is considering to provide reinsurance
Page 2 of 11
ARe 320 Practice Test
Study online at https://quizlet.com/_bpzt5x
1. TOP Insurance is a property-casualty insurer writing Increase its reinsurance
all primary lines of insurance coverage. A large por- protection
tion of its invested assets are in common stocks, in-
cluding those of its subsidiaries and affiliated com-
panies. Which one of the following would help TOP
Insurance to guard against simultaneous losses in its
investments and underwriting operations?
2. Which one of the following statements regarding prop- Lightning damage to a
erty exposed to loss is true? tree is an example of a real
property loss exposure
3. A new marketing program has led to a period of rapid Surplus Relief
growth for Goshen Insurance. The insurer would like
to continue to grow its book of business, so manage-
ment has decided to use reinsurance to help with its
legal and regulatory compliance. Reinsurance can help
Goshen Insurance with this goal by providing which
one of the following?
4. Taunton Insurance is seeking a collaborative relation- Sharing predictive models
ship with a reinsurer. It needs help setting treat limits
and determining the probability of unsustainable loss-
es stemming from catastrophes. A reinsurer can col-
laborate with Goshen Insurance to meet these needs
by
5. Austin is considering purchasing a watercraft for his The size of the watercraft
family. A friend who also owns a watercraft advised
Austin that insurance coverage for the watercraft may
be provided under his homeowners or personal auto
policy. Which one of the following will best determine
Page 1 of 11
, ARe 320 Practice Test
ARe 320 Practice Test
Study online at https://quizlet.com/_bpzt5x
if the watercraft can be covered under one of these
policies, or if Austin will need to purchase separate
personal watercraft insurance?
6. Liability for completed operations is so similar to which Products liability
one of the following types of liability exposures that
the two are often treated as components of one loss
exposure?
7. Jameson Enterprises faces risks based on their di- Coverage A
rectors and officers, their employment practices, and
their fiduciary duties. Two of the directors have claims
against them for acts they may be responsible for
in their roles as directors. Jameson is not permit-
ted to provide indemnification to its directors or offi-
cers. These claims would most likely be covered under
which one of the following insuring agreements of a
D&O liability policy?
8. During the last five years, Insurance Company has in- Analyze this trend carefully,
creased its total policies in force at substantially higher because it could indicate a
rates than originally anticipated. Which one of the fol- threat or an opportunity
lowing best describes how Insurance Company should
react to this?
9. All of the following are risk control measures for Proper training for their
Grant Plumbing Supply Company's premises liability, deliver drivers who make
EXCEPT: bulk deliveries to large
customers
10. An upcoming commercial specialty risk assessment Diversification
will concentrate on types of coverages and concerns
that Westlake Re is considering to provide reinsurance
Page 2 of 11
