General Insurance CompuCram Practice
Test
An example of loss reduction is... - ✔️✔️Installing a smoke detector.
A reciprocal exchanges functions in a manner similar to that of a mutual insurer and is
managed by a(n)... - ✔️✔️Attorney-in-fact
A company owned by the holders of its capital stock best describes a... - ✔️✔️stock
company
A unincorporated group of individuals sharing risk and managed by an attorney-in-fact is
a... - ✔️✔️Reciprocal
What is NOT an example of avoidance? - ✔️✔️buying insuance
Which is NOT considered a hazard? - ✔️✔️fire burning out of control
An insurance company organized under the laws of another country best describes
a(n)... - ✔️✔️alien insurer
An example of transferring risk of loss is... - ✔️✔️A landlord placing a tenant "hold
harmless" cause in the lease agreement.
The authority the agent believes he has in order to do his job correctly for the company
is known as... - ✔️✔️Implied authority
When insurers agree in advance to offer certain types of risks to reduce the risk of a
catastrophic loss and a re-insurer agrees to accept them, what has occurred? -
✔️✔️Reinsurance
A deductible in an insurance policy is an example of... - ✔️✔️retention
An insurer who has not been issued a Certificate of Authority by the Superintendent of
Insurance for the state is most likely a(n) - ✔️✔️Unauthorized Insurer
A risk that involves only the possibility of a loss is a... - ✔️✔️Pure Risk
Purchasing insurance is most closely identified with what risk management technique? -
✔️✔️transfer
Test
An example of loss reduction is... - ✔️✔️Installing a smoke detector.
A reciprocal exchanges functions in a manner similar to that of a mutual insurer and is
managed by a(n)... - ✔️✔️Attorney-in-fact
A company owned by the holders of its capital stock best describes a... - ✔️✔️stock
company
A unincorporated group of individuals sharing risk and managed by an attorney-in-fact is
a... - ✔️✔️Reciprocal
What is NOT an example of avoidance? - ✔️✔️buying insuance
Which is NOT considered a hazard? - ✔️✔️fire burning out of control
An insurance company organized under the laws of another country best describes
a(n)... - ✔️✔️alien insurer
An example of transferring risk of loss is... - ✔️✔️A landlord placing a tenant "hold
harmless" cause in the lease agreement.
The authority the agent believes he has in order to do his job correctly for the company
is known as... - ✔️✔️Implied authority
When insurers agree in advance to offer certain types of risks to reduce the risk of a
catastrophic loss and a re-insurer agrees to accept them, what has occurred? -
✔️✔️Reinsurance
A deductible in an insurance policy is an example of... - ✔️✔️retention
An insurer who has not been issued a Certificate of Authority by the Superintendent of
Insurance for the state is most likely a(n) - ✔️✔️Unauthorized Insurer
A risk that involves only the possibility of a loss is a... - ✔️✔️Pure Risk
Purchasing insurance is most closely identified with what risk management technique? -
✔️✔️transfer
