RMIN 4000 EDMUNDS EXAM 2 || MOST RECENT
EXAM 2026-2027 ACTUAL COMPLETE REAL EXAM
QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) ALREADY GRADED A+ | BRAND NEW
EXAM | JUST RELEASED!!
what are some methods to sell individual insurance policies to
– ANSWER -employer groups, labor unions, trade associations,
college and university alumni, and others groups like AARP or
AAA
Dodd-Frank Wall Street Reform and Consumer Protection
(2010) - ANSWER-
Established general federal oversight of the insurance
industry with FSOC
(Financial Stability Oversight
Council)
what are the functions of reinsurance - ANSWER-increase
underwriting capacity, stabilize profits, reduce the unearned
premium reserve, provide protections against a catastrophic
loss, retire from a line of business, and obtain underwriting
advice on a line for which the insurer has little experience
,what are the two types of reinsurance? - ANSWER-facultative
and treaty
what types of investments are made with premiums? -
ANSWER-typically invested in "safe" investments like bonds.
life insurance can be invested in long term assets like real
estate. P&C is short term exposure so premiums are invested
in securities like high quality bonds or stocks
what are some other insurance company operations? -
ANSWER-information
systems, accounting, legal department, and loss
control services
What is Bad Faith? - ANSWER-law that allows lawsuits
against insurance
companies for: improper denial and/or
delay of claims
What are the requirements of an enforceable insurance
contract? - ANSWER-
offer and acceptance, exchange of consideration, competent
parties, and legal
purpose
what is the goal of examinations of insurers? - ANSWER-to
protect consumers from sale of unsuitable insurance products,
misrepresentation of coverage, excessive sale pressure, rates
, that are excessive or discriminatory, denial of legitimate claims,
or improper termination of claims
what is the argument for government regulation? -
ANSWER-decrease
compliance costs, increase competition and innovation,
more effective
negotiations of international insurance agreements, and
more effective
treatment of
systemic risk
what is the argument for state regulation? - ANSWER-needs of
each state are
different, federal regulation is historically inefficient, transition
to federal would
be costly and require dual regulation for a short time, the
NAIC already
advocates for uniformity, insurers can innovate by
experimenting in different
states, and unknown consequences of
federal regulation
who makes the offer and acceptance? - ANSWER-the insured
makes the offer
(file submission) and the insurer accepts (issues a
binder or policy)
EXAM 2026-2027 ACTUAL COMPLETE REAL EXAM
QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) ALREADY GRADED A+ | BRAND NEW
EXAM | JUST RELEASED!!
what are some methods to sell individual insurance policies to
– ANSWER -employer groups, labor unions, trade associations,
college and university alumni, and others groups like AARP or
AAA
Dodd-Frank Wall Street Reform and Consumer Protection
(2010) - ANSWER-
Established general federal oversight of the insurance
industry with FSOC
(Financial Stability Oversight
Council)
what are the functions of reinsurance - ANSWER-increase
underwriting capacity, stabilize profits, reduce the unearned
premium reserve, provide protections against a catastrophic
loss, retire from a line of business, and obtain underwriting
advice on a line for which the insurer has little experience
,what are the two types of reinsurance? - ANSWER-facultative
and treaty
what types of investments are made with premiums? -
ANSWER-typically invested in "safe" investments like bonds.
life insurance can be invested in long term assets like real
estate. P&C is short term exposure so premiums are invested
in securities like high quality bonds or stocks
what are some other insurance company operations? -
ANSWER-information
systems, accounting, legal department, and loss
control services
What is Bad Faith? - ANSWER-law that allows lawsuits
against insurance
companies for: improper denial and/or
delay of claims
What are the requirements of an enforceable insurance
contract? - ANSWER-
offer and acceptance, exchange of consideration, competent
parties, and legal
purpose
what is the goal of examinations of insurers? - ANSWER-to
protect consumers from sale of unsuitable insurance products,
misrepresentation of coverage, excessive sale pressure, rates
, that are excessive or discriminatory, denial of legitimate claims,
or improper termination of claims
what is the argument for government regulation? -
ANSWER-decrease
compliance costs, increase competition and innovation,
more effective
negotiations of international insurance agreements, and
more effective
treatment of
systemic risk
what is the argument for state regulation? - ANSWER-needs of
each state are
different, federal regulation is historically inefficient, transition
to federal would
be costly and require dual regulation for a short time, the
NAIC already
advocates for uniformity, insurers can innovate by
experimenting in different
states, and unknown consequences of
federal regulation
who makes the offer and acceptance? - ANSWER-the insured
makes the offer
(file submission) and the insurer accepts (issues a
binder or policy)
