ARe 320 Mock Exam + Chapter Quiz Questions (that I got incorrect)
ARe 320 Mock Exam + Chapter Quiz Questions (that I got incorrect)
Study online at https://quizlet.com/_hsb3e4
1. All of the following are risk control measures for A. Proper training of their
Grant Plumbing Supply Company's premises liability, delivery drivers who make
EXCEPT: bulk deliveries to large
Select one: customers.
A. Proper training of their delivery drivers who make
bulk deliveries to large customers.
B. Conducting regular maintenance on their heating
and electrical systems
C. Regularly inspecting the fire protection and security
systems
D. Making sure the snow and ice is promptly and con-
tinually removed during storms.
2. Which one of the following is true regarding the mea- D. A fire division used
sures underwriters use to determine the potential to determine the amount
severity of a loss? subject for fire insurance
Select one: could be part of a build-
ing, an entire building, or
A. The amount of insurance is the most useful figure several buildings.
for determining potential loss severity as it has a di-
rect bearing on the amount of a loss.
B. Amount subject is the total value exposed to loss at
any one location from any one event, which is gener-
ally agreed upon by the insurer and the insured.
C. Although potential loss severity can help an un-
derwriter establish appropriate limits of insurance, it
rarely helps determine whether is acceptable.
D. A fire division used to determine the amount sub-
ject for fire insurance could be part of a building, an
entire building, or several buildings.
Page 1 of 90
, ARe 320 Mock Exam + Chapter Quiz Questions (that I got incorrect)
ARe 320 Mock Exam + Chapter Quiz Questions (that I got incorrect)
Study online at https://quizlet.com/_hsb3e4
3. Shelby Insurance is meeting with different reinsurers B. Providing technical as-
regarding a business plan to begin offering umbrella sistance with underwriting
coverage for its existing commercial customers. As it and pricing
enters the new market, the primary insurer is expect-
ing to reinsure a significant portion of the book and is - In the increasing-
looking for a reinsurer that will be a collaborator. Best ly competitive reinsurance
Reinsurance can differentiate itself as a collaborator market, Best Reinsurance
by doing which one of the following? wants to differentiate itself
Select one: as a collaborator. It can do
this by using its expertise
A. Satisfying regulatory requirements to provide Shelby Insur-
B. Providing technical assistance with underwriting ance with technical assis-
and pricing tance in underwriting and
C. Offering the lowest rates pricing as it enters a new
D. Offering higher limits than requested market.
4. Jack, a reinsurance intermediary, is working on a prop- B. Categorizes the prima-
erty reinsurance treaty proposal for Hilltop Insurance. ry insurer's policies into
One of the items that should always be included in a ranges to help the rein-
treaty reinsurance proposal is a limits profile for the surer understand the loss
primary insurer. A limits profile exposures subject to the
Select one: treaty.
A. Lists the policy coverage period, including the exact
time that the policy becomes effective.
B. Categorizes the primary insurer's policies into
ranges to help the reinsurer understand the loss ex-
posures subject to the treaty.
C. Establishes the attachment point and the reinsur-
ance limits for the treaty.
D. Indicates the primary insurer's retention on each
class of loss exposure ceded under the treaty.
Page 2 of 90
, ARe 320 Mock Exam + Chapter Quiz Questions (that I got incorrect)
ARe 320 Mock Exam + Chapter Quiz Questions (that I got incorrect)
Study online at https://quizlet.com/_hsb3e4
5. Prime Insurance is involved in the reinsurance place- D. Preagreement docu-
ment process through a reinsurance intermediary. mentation
Proposals have been delivered and negotiations fol-
lowed. It is two months past the effective date of -Considerable time may
the agreement and the final agreement has not been lapse between reinsur-
signed. Which one of the following is used to guide ance negotiations and a
premium cessions and loss payments before the final final agreement. Primary
agreement is signed? insurers, reinsurance in-
Select one: termediaries, and reinsur-
ers use the preagreement
A. Initial proposal documents documentation to guide
B. Expiring agreement premium cessions and
C. Arbitration loss payments before the
D. Preagreement documentation final agreement is signed.
Reinsurers that agree to
the reinsurance agree-
ment's terms are bound
by those terms even if the
agreement has not been
signed.
6. Why will relatively new insurer South Insurance (SI) C. To facilitate reinsuring
include equipment breakdown coverage in its com- the coverage with an in-
mercial package policies? surer specializing in that
Select one: line of insurance that can
also provide claims ser-
A. To make sure it retains the full coverage of the in- vices.
sured's needs which will be covered under SI's causes
of loss in its policy.
B. To make sure it can assume the financial conse-
quences of the particular loss exposure with its exper-
tise in this field.
Page 3 of 90
, ARe 320 Mock Exam + Chapter Quiz Questions (that I got incorrect)
ARe 320 Mock Exam + Chapter Quiz Questions (that I got incorrect)
Study online at https://quizlet.com/_hsb3e4
C. To facilitate reinsuring the coverage with an insurer
specializing in that line of insurance that can also pro-
vide claims services.
D. Because the nature of the coverage relates to a larg-
er and less specialized field which can be financially
prosperous to SI.
7. Commercial policy insureds have similar loss expo- B. Boilers and manufac-
sures to personal policy insureds. All of the following turing machinery
are property loss exposures shared by both types of
insureds, EXCEPT:
Select one:
A. Earthquakes and volcanic activity
B. Boilers and manufacturing machinery
C. Severe flood losses and retaining walls
D. Foundations and fences
8. Which one of the following entities would likely have A. Paul the plumber
the greatest completed operations loss exposure?
Select one: - Paul is installing or re-
pairing a plumbing sys-
A. Paul the plumber tem which could possi-
B. Moe the manufacturer bly bursts after completed
C. Doris the physician operations, which could
D. Sam the accountant hold him liable to com-
pleted operations loss ex-
posure. B is product liabil-
ity, C is professional liabil-
ity, and D is E&O liability.
9. Underwriter Harvey needs more information on sev- A. OSHA log
eral of Grantley Casualty Insurance Company's (GCIC)
Page 4 of 90
ARe 320 Mock Exam + Chapter Quiz Questions (that I got incorrect)
Study online at https://quizlet.com/_hsb3e4
1. All of the following are risk control measures for A. Proper training of their
Grant Plumbing Supply Company's premises liability, delivery drivers who make
EXCEPT: bulk deliveries to large
Select one: customers.
A. Proper training of their delivery drivers who make
bulk deliveries to large customers.
B. Conducting regular maintenance on their heating
and electrical systems
C. Regularly inspecting the fire protection and security
systems
D. Making sure the snow and ice is promptly and con-
tinually removed during storms.
2. Which one of the following is true regarding the mea- D. A fire division used
sures underwriters use to determine the potential to determine the amount
severity of a loss? subject for fire insurance
Select one: could be part of a build-
ing, an entire building, or
A. The amount of insurance is the most useful figure several buildings.
for determining potential loss severity as it has a di-
rect bearing on the amount of a loss.
B. Amount subject is the total value exposed to loss at
any one location from any one event, which is gener-
ally agreed upon by the insurer and the insured.
C. Although potential loss severity can help an un-
derwriter establish appropriate limits of insurance, it
rarely helps determine whether is acceptable.
D. A fire division used to determine the amount sub-
ject for fire insurance could be part of a building, an
entire building, or several buildings.
Page 1 of 90
, ARe 320 Mock Exam + Chapter Quiz Questions (that I got incorrect)
ARe 320 Mock Exam + Chapter Quiz Questions (that I got incorrect)
Study online at https://quizlet.com/_hsb3e4
3. Shelby Insurance is meeting with different reinsurers B. Providing technical as-
regarding a business plan to begin offering umbrella sistance with underwriting
coverage for its existing commercial customers. As it and pricing
enters the new market, the primary insurer is expect-
ing to reinsure a significant portion of the book and is - In the increasing-
looking for a reinsurer that will be a collaborator. Best ly competitive reinsurance
Reinsurance can differentiate itself as a collaborator market, Best Reinsurance
by doing which one of the following? wants to differentiate itself
Select one: as a collaborator. It can do
this by using its expertise
A. Satisfying regulatory requirements to provide Shelby Insur-
B. Providing technical assistance with underwriting ance with technical assis-
and pricing tance in underwriting and
C. Offering the lowest rates pricing as it enters a new
D. Offering higher limits than requested market.
4. Jack, a reinsurance intermediary, is working on a prop- B. Categorizes the prima-
erty reinsurance treaty proposal for Hilltop Insurance. ry insurer's policies into
One of the items that should always be included in a ranges to help the rein-
treaty reinsurance proposal is a limits profile for the surer understand the loss
primary insurer. A limits profile exposures subject to the
Select one: treaty.
A. Lists the policy coverage period, including the exact
time that the policy becomes effective.
B. Categorizes the primary insurer's policies into
ranges to help the reinsurer understand the loss ex-
posures subject to the treaty.
C. Establishes the attachment point and the reinsur-
ance limits for the treaty.
D. Indicates the primary insurer's retention on each
class of loss exposure ceded under the treaty.
Page 2 of 90
, ARe 320 Mock Exam + Chapter Quiz Questions (that I got incorrect)
ARe 320 Mock Exam + Chapter Quiz Questions (that I got incorrect)
Study online at https://quizlet.com/_hsb3e4
5. Prime Insurance is involved in the reinsurance place- D. Preagreement docu-
ment process through a reinsurance intermediary. mentation
Proposals have been delivered and negotiations fol-
lowed. It is two months past the effective date of -Considerable time may
the agreement and the final agreement has not been lapse between reinsur-
signed. Which one of the following is used to guide ance negotiations and a
premium cessions and loss payments before the final final agreement. Primary
agreement is signed? insurers, reinsurance in-
Select one: termediaries, and reinsur-
ers use the preagreement
A. Initial proposal documents documentation to guide
B. Expiring agreement premium cessions and
C. Arbitration loss payments before the
D. Preagreement documentation final agreement is signed.
Reinsurers that agree to
the reinsurance agree-
ment's terms are bound
by those terms even if the
agreement has not been
signed.
6. Why will relatively new insurer South Insurance (SI) C. To facilitate reinsuring
include equipment breakdown coverage in its com- the coverage with an in-
mercial package policies? surer specializing in that
Select one: line of insurance that can
also provide claims ser-
A. To make sure it retains the full coverage of the in- vices.
sured's needs which will be covered under SI's causes
of loss in its policy.
B. To make sure it can assume the financial conse-
quences of the particular loss exposure with its exper-
tise in this field.
Page 3 of 90
, ARe 320 Mock Exam + Chapter Quiz Questions (that I got incorrect)
ARe 320 Mock Exam + Chapter Quiz Questions (that I got incorrect)
Study online at https://quizlet.com/_hsb3e4
C. To facilitate reinsuring the coverage with an insurer
specializing in that line of insurance that can also pro-
vide claims services.
D. Because the nature of the coverage relates to a larg-
er and less specialized field which can be financially
prosperous to SI.
7. Commercial policy insureds have similar loss expo- B. Boilers and manufac-
sures to personal policy insureds. All of the following turing machinery
are property loss exposures shared by both types of
insureds, EXCEPT:
Select one:
A. Earthquakes and volcanic activity
B. Boilers and manufacturing machinery
C. Severe flood losses and retaining walls
D. Foundations and fences
8. Which one of the following entities would likely have A. Paul the plumber
the greatest completed operations loss exposure?
Select one: - Paul is installing or re-
pairing a plumbing sys-
A. Paul the plumber tem which could possi-
B. Moe the manufacturer bly bursts after completed
C. Doris the physician operations, which could
D. Sam the accountant hold him liable to com-
pleted operations loss ex-
posure. B is product liabil-
ity, C is professional liabil-
ity, and D is E&O liability.
9. Underwriter Harvey needs more information on sev- A. OSHA log
eral of Grantley Casualty Insurance Company's (GCIC)
Page 4 of 90
