RWARAKA

Loss Ratio Formula - answers(Incurred Losses+Loss Adjusting Expense)/Earned Premium Insurable Interest - answersOwnership Stand to suffer economic loss Components - answersFactors that determine rates including loss reserves, loss adjusting expenses, operating expenses, and profits Hazards - answersPhysical: tangible subject of insurance increasing chance of loss (exposed wire) Moral: Dishonest predisposition of IN (defraud insurer) Morale: IN doesn't care about insured property, ...

Insurable Interest- 3 requirements - answers1. Legitimate financial interest in preserving the property to be insured. 2. Must be No potential for gain 3. Must be potential for loss Underwriting - answersreviewing apps for insurance ( risk selection process) Underwriter's function - answersunderwriter evaluates apps and determines whether a policy should be issued and its terms and rates for that policy. Loss ratio - answers(Incurred losses + loss adjusting expense) / Earned pre...

What determines an insurer's responsibility for payment, as stated in an insurance policy? - answersLimits of liability How are direct and indirect losses related? - answersDirect losses can cause indirect losses. What is the process that insurers use to determine whether a policy should be issued and on what terms and conditions? - answersUnderwriting A policy that covers all causes of loss except for those specifically excluded is known as what type of policy? - answersOpen peril (...

which statement regarding "functional replacement cost" is correct? •functional replacement cost is only available for buildings, not business contents •functional replacement cost is only offered through non-admitted surplus lines insurers •functional replacement cost covers the cost to replace with similar property that performs the same function •functional replacement cost is only applicable to buildings constructed before 1950 - answersfunctional replacement cost covers t...

A condition or situation that presents a possibility of loss is a (an): - answersexposure Which hazard can be described as a careless attitude or general indifference on the part of the insured toward the oc The purpose of insurance is to: - answerstransfer risk currence of loss The purpose of insurance is to: - answerstransfer risk ? - answersmorale Which risk is insurable? - answerspure With regard to insurance, risk can be defined as: - answersuncertainty regarding loss Trea...

A financial product purchased by people with a similar risk to protect against the risk of loss - answersinsurance The money paid to an insurance company to purchase a policy. - answerspremium The chance of loss. - answersrisk The out of pocket money paid before an insurance company will cover the remaining loss. - answersdeductible A contract that states the exact terms of the insurance policy including the risks covered. - answerspolicy The type of insurance that provides financ...

Fire Insurance policies are usually named peril policies - answersTrue A policy insuring against fire losses covers every loss, damage or injury to the insured property of the fire that is assumed to be the cause. - answersFalse A fire insurance policy can cover a building or it can cover contents or both. In order to cover both, it must be so stated since fire insurance is a named peril coverage. - answersTrue Concealment or fraud can take place either before or after a loss has occurr...

Which of the following two perils would be excluded if a property was vacant for more than 60 days? - answersDamage by burglars and accidental discharge of steam or water When can a policy be voided if an insured committed fraud? - answersbefore or after a loss How is the premium for Home Day Care Coverage determined? - answersnumber of children An exclusive home would most likely be insured under which form? - answersHO-8 What Homeowners form is called the Renter's policy? - answ...

Insurable interest - answers(principles & concepts) amy financial interest in property when damage or destruction to the property would result in financial loss to the owner or party with interest Function - answers(underwriting) risk the company wants to insure; risk selection Loss ratio - answers(underwriting) divide the losses by the earned premium for the period Rates - answers(principles & concepts) price for each unit of exposure that should generated a premium sufficient to cover antic...

An individual applied for auto insurance and obtained coverage from ABC Insurance Company. Who is the first party in the contract? A. The insured (customer) B. The insurer (insurance company) C. The agent D. The insured and agent - answersA. The insured (customer) If a fire causes damage to a building, the fire is A. a hazard В. а peril C. a risk D. an exposure - answersВ. а peril Wearing a seat belt in a car is an example of which method of managing risk A. Retain ...