Finance 310 Final Ferguson ULL Questions With Complete
Solutions
__ live longer than men so get paid __ correct answers women,
less
__ refund costs more than __ refund correct answers
installment, cash
"hard" insurance market correct answers property and liability
insurance markets fluctuate between periods of tight
underwriting standards and high premiums
"per capita" vs "per stripes" correct answers -per capita per head
-per stripes divided among percentages
"Soft" insurance market correct answers periods of loose
underwriting standards and low premiums
*recall* correct answers the primary purpose of a life insurance
is protection, but various policy provisions, rights and clauses
have value
2 impacts of taxation: correct answers -income taxes
estate (death) taxes
4 major personal risks correct answers premature death,
insufficient retirement income, risk or poor health and risk of
unemployment
,ACA (Affordable Care Act) correct answers prohibits both
annual and lifetime limits on essential benefits (hospitalization,
maternity/newborn care, pediatric, prevention/wellness, lab
services)
access co-pay, plus "capitation rate" correct answers health
maintenance organization provider compensation
active retention correct answers individual is consciously aware
of the risk and deliberately plans to retain all or part of it
admitted assets correct answers assets that an insurer can show
on its statutory balance sheet in determining its financial
condition
adverse selection correct answers tendency of person with a
higher than average chance of loss to seek insurance at a
standard rate, which if not controlled by underwriting, results in
a higher than expected loss levels
agency building system correct answers insurer builds its own
agency force by recruiting, financing, training and supervising
new agents
agents correct answers legally represents the principal and has
authority to act on principals behalf
aleatory contracts correct answers the values exchanged may
not be equal but depending on an uncertain event
,alien insurer correct answers insurer chartered by a foreign
country; must also meet certain requirements to do business in
the state
allied lines correct answers covers that are usually purchased
with fire insurance, such as windstorm, hair and vandalism
an example of a joint and last survivor ship correct answers
married couple
annuity income correct answers payout over time
annuity income has 3 types of payout options correct answers -
fixed period annuity
when an annuity distribution period begins or the annuitization
begins, the annuitant can choose distributions over a fixed
period of time
-fixed amount annuity
-life income
annuity principle (adverse selection) correct answers only you
know how long you will live
any occupation correct answers if cannot do any job that you
are by training, experience, or certified to do
apparent authority correct answers authority the public
reasonably believes the agent posses based on actions of the
principal
, assessment method correct answers raises necessary funds to
pay unpaid claims
asset valuation reserve correct answers statutory account
designed to absorb asset value fluctuations not caused by
changing interest rates
assets correct answers financial investments
assignment of policy benefits correct answers -absolute
assignment in which all(and not merely a portion of) benefits,
liabilities, and/or rights are transferred by one party to another,
without any pre-condition
vs
-collateral
asset assignment in which ownership rights are transferred only
as an additional security for a loan, and revert to the assignor
when the loan is repaid
association or group captive correct answers insurer owned by
several parents
at every age the probability of being disables is __ probability of
death correct answers greater than
avoidance correct answers try not to have the risk
background legal frame work correct answers "criminal vs civil
law"
tort vs breach of contract
Solutions
__ live longer than men so get paid __ correct answers women,
less
__ refund costs more than __ refund correct answers
installment, cash
"hard" insurance market correct answers property and liability
insurance markets fluctuate between periods of tight
underwriting standards and high premiums
"per capita" vs "per stripes" correct answers -per capita per head
-per stripes divided among percentages
"Soft" insurance market correct answers periods of loose
underwriting standards and low premiums
*recall* correct answers the primary purpose of a life insurance
is protection, but various policy provisions, rights and clauses
have value
2 impacts of taxation: correct answers -income taxes
estate (death) taxes
4 major personal risks correct answers premature death,
insufficient retirement income, risk or poor health and risk of
unemployment
,ACA (Affordable Care Act) correct answers prohibits both
annual and lifetime limits on essential benefits (hospitalization,
maternity/newborn care, pediatric, prevention/wellness, lab
services)
access co-pay, plus "capitation rate" correct answers health
maintenance organization provider compensation
active retention correct answers individual is consciously aware
of the risk and deliberately plans to retain all or part of it
admitted assets correct answers assets that an insurer can show
on its statutory balance sheet in determining its financial
condition
adverse selection correct answers tendency of person with a
higher than average chance of loss to seek insurance at a
standard rate, which if not controlled by underwriting, results in
a higher than expected loss levels
agency building system correct answers insurer builds its own
agency force by recruiting, financing, training and supervising
new agents
agents correct answers legally represents the principal and has
authority to act on principals behalf
aleatory contracts correct answers the values exchanged may
not be equal but depending on an uncertain event
,alien insurer correct answers insurer chartered by a foreign
country; must also meet certain requirements to do business in
the state
allied lines correct answers covers that are usually purchased
with fire insurance, such as windstorm, hair and vandalism
an example of a joint and last survivor ship correct answers
married couple
annuity income correct answers payout over time
annuity income has 3 types of payout options correct answers -
fixed period annuity
when an annuity distribution period begins or the annuitization
begins, the annuitant can choose distributions over a fixed
period of time
-fixed amount annuity
-life income
annuity principle (adverse selection) correct answers only you
know how long you will live
any occupation correct answers if cannot do any job that you
are by training, experience, or certified to do
apparent authority correct answers authority the public
reasonably believes the agent posses based on actions of the
principal
, assessment method correct answers raises necessary funds to
pay unpaid claims
asset valuation reserve correct answers statutory account
designed to absorb asset value fluctuations not caused by
changing interest rates
assets correct answers financial investments
assignment of policy benefits correct answers -absolute
assignment in which all(and not merely a portion of) benefits,
liabilities, and/or rights are transferred by one party to another,
without any pre-condition
vs
-collateral
asset assignment in which ownership rights are transferred only
as an additional security for a loan, and revert to the assignor
when the loan is repaid
association or group captive correct answers insurer owned by
several parents
at every age the probability of being disables is __ probability of
death correct answers greater than
avoidance correct answers try not to have the risk
background legal frame work correct answers "criminal vs civil
law"
tort vs breach of contract
