WebCe - Commercial Lines 101 Exam with complete and verified solutions

WebCe - Commercial Lines 101 Exam with complete and verified solutions What is the underwriter's goal? - answerTo write a book of business in which the actual losses approximate the expected losses. Gertrude is going to become an insurance agent. She would like to work in an agency that represents many different insurance companies. Gertrude will go to work for a(n) - answerIndependent agency When a client suffers a loss, MegaInsurers is expected to respond promptly to settle the resulting claim. Depending on the line of insurance, claim costs generally consume between 50 and 90 percent of: - answerThe premium dollar. Anderson Auto Insurance Company has established its rates, and the rates are deemed to be fair by the insurance regulators in the states where Anderson does business. Anderson is very concerned about setting adequate rates because inadequate rates can lead to: - answerAnderson's insolvency. What role does a state insurance department play in the regulation of policy forms? - answerThe state insurance department approves the forms. Grand Insurance has a number of claims that are being processed, with an estimated value of $4 million. This estimate is known as the: - answerLoss reserves