AU
60
/
Missed
/
Practice Test Questions With Correct Answers
/ / / / / /
When
/insuring /
a
/partnership,
/it /is /essential /to /identify /which /one /of /the /following /on /the /policy /declaration /page?
Choose /one /answer.
/
A. /The /partnership
/
B. /All /partners
/
C. /General /partners /only
/
D. /All /partners /and /their /share /of /the /partnership /- /verified /answer(s)-✔✔A. /The /partnership
If /
a
/company's /inventory /turnover /ratio /is /higher /than /the /industry /benchmark, /it /indicates /that
Choose /one /answer.
/
A. /Its /inventory /is /becoming /obsolete /compared /to /that /of /its /competitors.
/
B. /The /company /is /holding /its /inventory /longer /than /its /competitors.
/
,C. /The /company /is /selling /its /inventory /more /quickly /than /its /competitors.
/
D.
/The
/company's
/inventory /is /generating /higher /costs /than /that /of /its /competitors. /- /verified /answer(s)-
✔✔C. /The /company /is /selling /its /inventory /more /quickly /than /its /competitors.
Which /one /of /the /following /is /determined /by /a /company's /underwriting /policy?
Choose /one /answer.
/
A. /The /underwriting /authority /the /insurer /grants /its /producers
/
B. /Composition /of /the /insurer's /book /of /business
/
C. /The /market /pursued /by /the /insurer
/
D. /The /rating /organization /to /which /the /insurer /will /belong /- /verified /answer(s)-
✔✔B. /Composition /of /the /insurer's /book /of /business
Which
/one
/of /the /following /statements /is /true /regarding /ratemaking /in /different /types /of /insurance?
Choose /one /answer.
/
A.
/Most /losses /from /catastrophic /events, /such /as /hurricanes, /are /included /in /ratemaking /data /in
/the /affected /states.
B. /Trending /of /losses /in /fire /insurance /is /generally /restricted /to /claim /severity.
/
,C.
/The
/experience
/period /used /for /property /causes /of /loss /other /than /fire /is /usually /five /years /or /less.
/
D.
/Applying
/loss
/development
/factors
/to
/data
/is
/critical /when /claims /settle /quickly /and /loss /reserves /are /relatively /small. /- /verified /answer(s)-
✔✔B. /Trending /of /losses /in /fire /insurance /is /generally /restricted /to /claim /severity.
Which
/one
/of
/the
/following
/types
/of
/individual
/rating
/plans
/can
/be
/used
/by
/medium
/to
/large
/insureds
/in
/combination
, /with
/risk /control /and /allows /the /insured /to /manage /its /cash /flow /by /avoiding /upfront /payments?
Choose /one /answer.
/
A. /Schedule /rating /plan
/
B. /Large /deductible /plan
/
C. /Individual /risk /premium /modification /plan
/
D. /Expense /modification /plan /- /verified /answer(s)-✔✔B. /Large /deductible /plan
An
/insurer
/must
/decide
/what
/provision
/for
/profit
/and
/contingencies
/should
/be
/included
/in
/the
/rate
/and
/should
/consider
/the /overall /desired /rate /of /return, /including /likely /returns /from /investment /income /versus
Choose /one /answer.
/
60
/
Missed
/
Practice Test Questions With Correct Answers
/ / / / / /
When
/insuring /
a
/partnership,
/it /is /essential /to /identify /which /one /of /the /following /on /the /policy /declaration /page?
Choose /one /answer.
/
A. /The /partnership
/
B. /All /partners
/
C. /General /partners /only
/
D. /All /partners /and /their /share /of /the /partnership /- /verified /answer(s)-✔✔A. /The /partnership
If /
a
/company's /inventory /turnover /ratio /is /higher /than /the /industry /benchmark, /it /indicates /that
Choose /one /answer.
/
A. /Its /inventory /is /becoming /obsolete /compared /to /that /of /its /competitors.
/
B. /The /company /is /holding /its /inventory /longer /than /its /competitors.
/
,C. /The /company /is /selling /its /inventory /more /quickly /than /its /competitors.
/
D.
/The
/company's
/inventory /is /generating /higher /costs /than /that /of /its /competitors. /- /verified /answer(s)-
✔✔C. /The /company /is /selling /its /inventory /more /quickly /than /its /competitors.
Which /one /of /the /following /is /determined /by /a /company's /underwriting /policy?
Choose /one /answer.
/
A. /The /underwriting /authority /the /insurer /grants /its /producers
/
B. /Composition /of /the /insurer's /book /of /business
/
C. /The /market /pursued /by /the /insurer
/
D. /The /rating /organization /to /which /the /insurer /will /belong /- /verified /answer(s)-
✔✔B. /Composition /of /the /insurer's /book /of /business
Which
/one
/of /the /following /statements /is /true /regarding /ratemaking /in /different /types /of /insurance?
Choose /one /answer.
/
A.
/Most /losses /from /catastrophic /events, /such /as /hurricanes, /are /included /in /ratemaking /data /in
/the /affected /states.
B. /Trending /of /losses /in /fire /insurance /is /generally /restricted /to /claim /severity.
/
,C.
/The
/experience
/period /used /for /property /causes /of /loss /other /than /fire /is /usually /five /years /or /less.
/
D.
/Applying
/loss
/development
/factors
/to
/data
/is
/critical /when /claims /settle /quickly /and /loss /reserves /are /relatively /small. /- /verified /answer(s)-
✔✔B. /Trending /of /losses /in /fire /insurance /is /generally /restricted /to /claim /severity.
Which
/one
/of
/the
/following
/types
/of
/individual
/rating
/plans
/can
/be
/used
/by
/medium
/to
/large
/insureds
/in
/combination
, /with
/risk /control /and /allows /the /insured /to /manage /its /cash /flow /by /avoiding /upfront /payments?
Choose /one /answer.
/
A. /Schedule /rating /plan
/
B. /Large /deductible /plan
/
C. /Individual /risk /premium /modification /plan
/
D. /Expense /modification /plan /- /verified /answer(s)-✔✔B. /Large /deductible /plan
An
/insurer
/must
/decide
/what
/provision
/for
/profit
/and
/contingencies
/should
/be
/included
/in
/the
/rate
/and
/should
/consider
/the /overall /desired /rate /of /return, /including /likely /returns /from /investment /income /versus
Choose /one /answer.
/
