PSI PA PROPERTY CASUALITY EXAM GUIDE (RATED A+) VERIFIED QUESTIONS AND ANSWERS

PSI PA PROPERTY CASUALITY EXAM GUIDE (RATED A+) VERIFIED QUESTIONS AND ANSWERS insuring risks that are more prone to losses than average risk (poorer risks tend to seek insurance or file claims to a greater extent than better risks) companies can refuse or restrict coverage for bad risks or charge them a higher rate - ANSWER-Adverse Selection protects insurance agencies from catastrophic risks (war/nuclear events) - ANSWERReinsurance Within how many days from date of injury do employees have to notify the employer of the injury ?? - ANSWER-120 days the reduction, decrease, or disappearance of value of the person or property insured in a policy, caused by a named peril - ANSWER-Loss Methods of Handling Risk include... - ANSWERAvoidance, retention (reduce premiums), sharing, reduction, and transfer eliminating exposure for loss (ex. avoid airplane crash by not getting in airplane) - ANSWERAvoidance planned assumption of risk by an insured through the use of deductibles, co-payments, or self insurance Purposes are: 1) reduce expenses, improve cash flow 2) increase control of claim reserving and claim settlements 3) fund for losses that cannot be insured - ANSWER-Retention owned by stockholders, right of voting and incurring profits or losses - ANSWER-Stock companies According to the insurance law, who is the principal? - ANSWER-Broker An application as a resident agent must be made in how many days if an individual establishes a principal place of residence within Pa from another state? - ANSWER-90 days