- Study guides, Class notes & Summaries

centralize loss retention - ANSWER because an organization is able to insure all of its subsidiaries with the same pure captive, it is more likely to be able to a long-term relationship with a reinsurer enables a primary insurer to consistently fulfill producers' requests for insurance - ANSWER which one of the following statements is correct regarding treaty reinsurance collects premiums. issues policies, and pays covered losses - ANSWER a captive insurer the severity of losses transf...

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12 pages

Written in 2023/2024

Grade A+

suedocs

Executor Funds - ANSWER burial expenses, estate settlement costs Income needs of financially-dependent survivors - ANSWER Children Spouse or partner Other dependents (grandchildren, siblings, parents, friends, etc.) Business-related exposures - ANSWER Dependent projects (e.g., client relationships) Replacement of key employee Ownership Face Amount NEEDS - ANSWER Executor funds Income needs of financially-dependent survivors Business-related exposures Face Amount HUMAN LIFE VALU...

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10 pages

Written in 2023/2024

Grade A+

suedocs

Which one of the following is TRUE? A. It's the total amount of expected losses that causes risk. B. The Law of Large Numbers will work if you group together houses and commercial buildings for purposes of fire insurance. C. Liability risks are relatively easy for insurers to price. D. For new types of risk, the Coefficient of Variation (COV) is high. E. None of the above are TRUE. - ANSWER Correct answer: D. For new types of risk, the Coefficient of Variation (COV) is high. Which on...

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24 pages

Written in 2023/2024

Grade A+

suedocs

6) Participants in the private insurance market include all of the following except: A) insurance buyers B) insurance companies C) insurance regulators D) the FDIC - ANSWER Answer: D 7) Which of the following is not provided on the private insurance market? A) Bank deposit insurance B) Life insurance C) Health insurance D) Commercial lines insurance - ANSWER Answer: A 10) Which of the following statements is not correct about the insurance premium? A) The forecast of policyholders...

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10 pages

Written in 2023/2024

Grade A+

suedocs

Risk defined - ANSWER - A situation involving exposure to danger - uncertainty concerning the occurrence of a loss - possibility of loss on the person or entity that is insured Peril - ANSWER Cause of a loss - auto accident: collision is the peril Hazard - ANSWER Condition that increases the chance of a loss Physical hazard - ANSWER Physical condition that increases the frequency/severity of loss Moral hazard - ANSWER Dishonesty or character defects in an individual that increas...

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5 pages

Written in 2023/2024

Grade A+

suedocs

risk - ANSWER uncertainty concerning the occurrence of a loss loss exposure - ANSWER any situation or circumstance in which a loss is possible, regardless of whether a loss occurs objective risk - ANSWER the relative variance of actual loss form expected loss, decreases as the number of exposures increases (calculable) law of large numbers - ANSWER as the number of exposures increases, the more closely the actual experience will approach expected subjective risk - ANSWER uncertainty ...

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9 pages

Written in 2023/2024

Grade A+

suedocs

Declarations page - ANSWER Who/what/when is to be insured; info about the insured property or activity Definitions - ANSWER define unusual terms used in the policy or terms that have special meaning Insuring Agreement - ANSWER summarizes "the promise" of what the insurer will cover, for the premium Conditions - ANSWER place limits or requirements on performance of the insured or insured Exclusions - ANSWER eliminate coverage not normally needed, for coverage that should be provided...

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7 pages

Written in 2023/2024

Grade A+

suedocs

Which type of hazard results from a physical condition that increases the likelihood of a loss occurring? A. physical harm B. Character Hazard C. moral hazard D. Morale Hazard - ANSWER A indifference to risk due to the fact that the insured has insurance - ANSWER morale hazard the potential for loss caused by the character of the individual - ANSWER moral hazard The section of a insurance contract that describes exactly which property or person is covered is the: A. declarations se...

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9 pages

Written in 2023/2024

Grade A+

suedocs

RMI Exam 4 (2024 Latest Update)Correct 100% Problems with the health care system in the United States that led to implementation of the Affordable Care Act included 1. Rising healthcare expenditures 2.Considerable waste and inefficiency in the healthcare system A) I only B) II only C) both I and II D) neither I nor II - ANSWER C) both I and II All of the following are historical reasons for the increase in health care expenditures in the U.S. EXCEPT A) cost insulation because of...

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53 pages

Written in 2023/2024

Grade A

nursingismylife

RMI EXAM 2(2024 Latest Update)Accurate 100% chapter 5 - ANSWER chapter 5 principle of indemnity - ANSWER The insurer agrees to pay no more than the actual amount of the loss purpose of principle of indemnity - ANSWER -to prevent the insured from profiting from a loss -to reduce moral hazard in property insurance, indemnification is based on the _____ - ANSWER actual cash value methods of determining actual cash value - ANSWER -replacement cost less depreciation -fair market valu...

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14 pages

Written in 2023/2024

Grade A

nursingismylife

RMI exam 2 Correct Questions and Answers(RATED A) What are the 2 basic forms of an insuring agreement - ANSWER 1. named perils coverage: only perils specifically named in the policy are covered 2. open-perils: all losses are covered except losses specifically excluded Describe the 3 major types of exclusions - ANSWER 1. excluded perils (flood, intentional act) 2. excluded losses (a professional liability) 3. excluded property (pets) Describe the miscellaneous provision - ANSWER cance...

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9 pages

Written in 2023/2024

Grade A

nursingismylife

RMI Exam 3| 100 Questions| Answers| Accurcentralize loss retention - ANSWER because an organization is able to insure all of its subsidiaries with the same pure captive, it is more likely to be able to a long-term relationship with a reinsurer enables a primary insurer to consistently fulfill producers' requests for insurance - ANSWER which one of the following statements is correct regarding treaty reinsurance collects premiums. issues policies, and pays covered losses - ANSWER a captiv...

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12 pages

Written in 2023/2024

Grade A

nursingismylife

RMI FInal Exam| 100 Questions| Accurate Executor Funds - ANSWER burial expenses, estate settlement costs Income needs of financially-dependent survivors - ANSWER Children Spouse or partner Other dependents (grandchildren, siblings, parents, friends, etc.) Business-related exposures - ANSWER Dependent projects (e.g., client relationships) Replacement of key employee Ownership Face Amount NEEDS - ANSWER Executor funds Income needs of financially-dependent survivors Business-related ...

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10 pages

Written in 2023/2024

Grade A

nursingismylife

RMI Exam 2 Complete Questions with Which one of the following is TRUE? A. It's the total amount of expected losses that causes risk. B. The Law of Large Numbers will work if you group together houses and commercial buildings for purposes of fire insurance. C. Liability risks are relatively easy for insurers to price. D. For new types of risk, the Coefficient of Variation (COV) is high. E. None of the above are TRUE. - ANSWER Correct answer: D. For new types of risk, the Coefficient of...

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24 pages

Written in 2023/2024

Grade A

nursingismylife

RMI exam 1 Complete Questions And Answers Risk defined - ANSWER - A situation involving exposure to danger - uncertainty concerning the occurrence of a loss - possibility of loss on the person or entity that is insured Peril - ANSWER Cause of a loss - auto accident: collision is the peril Hazard - ANSWER Condition that increases the chance of a loss Physical hazard - ANSWER Physical condition that increases the frequency/severity of loss Moral hazard - ANSWER Dishonesty or ...

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5 pages

Written in 2023/2024

Grade A

nursingismylife

RMI final exam Correct Questions And Answers(RATED A) risk - ANSWER uncertainty concerning the occurrence of a loss loss exposure - ANSWER any situation or circumstance in which a loss is possible, regardless of whether a loss occurs objective risk - ANSWER the relative variance of actual loss form expected loss, decreases as the number of exposures increases (calculable) law of large numbers - ANSWER as the number of exposures increases, the more closely the actual experience will a...

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9 pages

Written in 2023/2024

Grade A

nursingismylife

RMI Exam(2024 Latest Update)Accurate 16) Participants in the private insurance market include all of the following except: A) insurance buyers B) insurance companies C) insurance regulators D) the FDIC - ANSWER Answer: D 7) Which of the following is not provided on the private insurance market? A) Bank deposit insurance B) Life insurance C) Health insurance D) Commercial lines insurance - ANSWER Answer: A 10) Which of the following statements is not correct about the insurance prem...

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10 pages

Written in 2023/2024

Grade A

nursingismylife

Global Risk Drivers - Human Environmental Damage Debt Crises Social Cohesion Erosion Risks analyzed 3 ways - Time-frame Clear & Present Dangers (< 2 years) Knock-on Effects (3-5 years) Existential Threats (5-10 years) Frontier (Horizon) Risks (10 years, less obvious) Likelihood & Impact Drivers Clear & Present Dangers - Societal Risks: Infectious diseases Livelihood crises Environmental: Extreme Weather events

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5 pages

Written in 2023/2024

Grade A+

HenryTom

Risk - correct answer Uncertainty regarding the occurrence of a loss Objective Risk - correct answer the variation of actual losses from expected losses Standard Deviation - correct answer important statistical measure of loss dispersion Chance of Loss - correct answer the probability that an event that causes a loss will occur Subjective Risk - correct answer Uncertainty based on a persons mental condition or state of mind Subjective Probabilities - correct answer The individual...

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9 pages

Written in 2023/2024

Grade A+

brittton

There is a great deal of debate regarding what people expect of their government. Government's may redistribute income through which of the follow: I. Market intervention II. Transfer Payments III. Taxation A. I only B. II only C. III only D. I and I E. I, II, and III - correct answer E - I, II, and III In module 1, we discussed the six steps of the risk management process. Risk (loss) Reduction is aimed at: A. frequency B. severity C. both frequency and severity D. retentio...

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20 pages

Written in 2023/2024

Grade A+

brittton