RMIN 4000 Edmunds Exam 2 Newest 2026 Questions
and Correct Detailed Answers Already Graded A+
what are the major insurance company operations? - CORRECT ANSWER-
ratemaking, underwriting, production, claims settlement, reinsurance, and
investments
ratemaking - CORRECT ANSWER-the pricing of insurance and the calculation of
insurance premiums
what is the problem with ratemaking? - CORRECT ANSWER-Firms do not know
the cost of their products in advance
actuary - CORRECT ANSWER-individual who uses complex statistical methods
and technology to analyze loss and other data to determine rates and premiums
what are the regulatory goals of ratemaking? - CORRECT ANSWER-rates must
be adequate, not be excessive, and should not be unfairly discriminatory
,what are the business goals of ratemaking? - CORRECT ANSWER-rates should
be stable, responsible, provide for contingencies, promote loss control, and be
simple
major types of private insurers - CORRECT ANSWER-Stock, Mutual, and Lloyd's
of London
stock insurers - CORRECT ANSWER-corporation owned by stockholders.
objective is to earn profit for stockholders by increasing the value of the stock and
paying dividends
Mutual insurers - CORRECT ANSWER-a corporation owned by policyholders.
profits are distributed to policyholders by dividends or rate reductions
types of mutual insurers - CORRECT ANSWER-advance premium mutual,
assessment mutual, and fraternal insurer
assessment mutual - CORRECT ANSWER-insurer has the right to assess
policyholders an additional amount if the insurer's financial operations are
unfavorable
, advance premium mutual - CORRECT ANSWER-insurer does not issue
assessable policies
fraternal insurer - CORRECT ANSWER-a mutual insurer that provides life and
health insurance to members of a social or religious organization
Lloyd's of London - CORRECT ANSWER-The world's leading insurance market
that provides services and physical facilities for its members to write specialized
lines of insurance. They underwrite insurance for syndicates.
Is Lloyd's of London an insurer? - CORRECT ANSWER-No
Lloyd's of London brokers - CORRECT ANSWER-represent policyholders to
arrange coverage with syndicates
syndicates - CORRECT ANSWER-offer insurance contracts in the market
who makes up a syndicate? - CORRECT ANSWER-members, managing agents,
and underwriters
and Correct Detailed Answers Already Graded A+
what are the major insurance company operations? - CORRECT ANSWER-
ratemaking, underwriting, production, claims settlement, reinsurance, and
investments
ratemaking - CORRECT ANSWER-the pricing of insurance and the calculation of
insurance premiums
what is the problem with ratemaking? - CORRECT ANSWER-Firms do not know
the cost of their products in advance
actuary - CORRECT ANSWER-individual who uses complex statistical methods
and technology to analyze loss and other data to determine rates and premiums
what are the regulatory goals of ratemaking? - CORRECT ANSWER-rates must
be adequate, not be excessive, and should not be unfairly discriminatory
,what are the business goals of ratemaking? - CORRECT ANSWER-rates should
be stable, responsible, provide for contingencies, promote loss control, and be
simple
major types of private insurers - CORRECT ANSWER-Stock, Mutual, and Lloyd's
of London
stock insurers - CORRECT ANSWER-corporation owned by stockholders.
objective is to earn profit for stockholders by increasing the value of the stock and
paying dividends
Mutual insurers - CORRECT ANSWER-a corporation owned by policyholders.
profits are distributed to policyholders by dividends or rate reductions
types of mutual insurers - CORRECT ANSWER-advance premium mutual,
assessment mutual, and fraternal insurer
assessment mutual - CORRECT ANSWER-insurer has the right to assess
policyholders an additional amount if the insurer's financial operations are
unfavorable
, advance premium mutual - CORRECT ANSWER-insurer does not issue
assessable policies
fraternal insurer - CORRECT ANSWER-a mutual insurer that provides life and
health insurance to members of a social or religious organization
Lloyd's of London - CORRECT ANSWER-The world's leading insurance market
that provides services and physical facilities for its members to write specialized
lines of insurance. They underwrite insurance for syndicates.
Is Lloyd's of London an insurer? - CORRECT ANSWER-No
Lloyd's of London brokers - CORRECT ANSWER-represent policyholders to
arrange coverage with syndicates
syndicates - CORRECT ANSWER-offer insurance contracts in the market
who makes up a syndicate? - CORRECT ANSWER-members, managing agents,
and underwriters
