7/4/25, 1:23 PM C16 Business of Insurance -Practice Exam Questions EXAM QUESTIONS WITH COMPLETE SOLUTION GUIDE (A+ GRADED 10…
C16 Business of Insurance -Practice Exam
Questions EXAM QUESTIONS WITH COMPLETE
SOLUTION GUIDE (A+ GRADED 100% VERIFIED)
LATEST VERSION 2025!!
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Terms in this set (46)
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,7/4/25, 1:23 PM C16 Business of Insurance -Practice Exam Questions EXAM QUESTIONS WITH COMPLETE SOLUTION GUIDE (A+ GRADED 10…
pages 3-3 and 3-13. the economic theory of supply
and demand proposes that more resources will be
allocated to a product that increases revenue. The law
of supply provides that the higher the price, then
more will be supplied. the law of demand provides
that, with all other factors equal, less will be
demanded as the price rises.
For the insurance market, supply is represented by the
capacity of the market, or the willingness of insurers
to insure risks. The demand is represented by
consumers' need for insurance coverage. In most
cases consumers have some flexibility about the level
of insurance they purchase, but they generally do not
Explain the economic laws
have the freedom to choose not to purchase it. this is
of Supply and Demand,
the case for automobile insurance, which is mandated
and explain why these
by law, and as a result demand remains fairly constant.
laws do not strictly apply
In addition, since auto insurance rate and availability
to automobile insurance.
are regulated, supply tends to fluctuate less, even
when prices are low. Insurers do not have the
flexibility to increase prices to where they want, nor
do they have the freedom to choose not to provide
insurance.
In these ways, both the supply and demand of auto
insurance is significantly influenced by regulation, and
less by market forces.
Rate peaks and valleys are mostly caused by
problems with supply rather than a change in demand.
This is not so evident with automobile insurance, given
that its supply and price is regulated in most
jurisdictions.
https://quizlet.com/1058477141/c16-business-of-insurance-practice-exam-questions-exam-questions-with-complete-solution-guide-a-graded-100-veri… 2/24
, 7/4/25, 1:23 PM C16 Business of Insurance -Practice Exam Questions EXAM QUESTIONS WITH COMPLETE SOLUTION GUIDE (A+ GRADED 10…
1.Product or service overview: what will be the
features, pricing structure, distribution strategy,
positioning, promotions and advertising that will be
used to attract customers. the products need to be
Your employer, Reliable
responsive to consumer needs. Perhaps the insurer
Insurance Brokers, has
will offer complementary services and products.
asked you to prepare a
2. A marketing plan must include tracking and
Marketing Plan. Identify
evaluating results. this can be done in various ways,
and describe two of the
including a tracking number or code, a promotion
key components you will
code, a survey to evaluate customer satisfaction,
include in your plan.
evaluation of complaints.
3. Budget and resources description. All marketing
budgets are limited, and need someone to be held
accountable for it.
The investment markets have a significant impact on
insurance companies because they hold a significant
amount of capital investments, and rely on investment
returns to augment underwriting profits. The
investment markets generally are in a bull market
when there is a soft insurance market. this is because
an insurer can afford to compete more on premiums
Discuss the impact of the
because they know they will make it up on strong
stock market on the
investment returns, and when investment returns
insurance industry.
wane, an insurer takes steps to increase its
underwriting profit by increasing prices and
tightening up policy terms and requirements, such as
loss control.
Also, in economic downturns, insurance purchasers
tend to be more cautious of their assets, and rely
more on insurance.
https://quizlet.com/1058477141/c16-business-of-insurance-practice-exam-questions-exam-questions-with-complete-solution-guide-a-graded-100-veri… 3/24
C16 Business of Insurance -Practice Exam
Questions EXAM QUESTIONS WITH COMPLETE
SOLUTION GUIDE (A+ GRADED 100% VERIFIED)
LATEST VERSION 2025!!
Save
Terms in this set (46)
https://quizlet.com/1058477141/c16-business-of-insurance-practice-exam-questions-exam-questions-with-complete-solution-guide-a-graded-100-veri… 1/24
,7/4/25, 1:23 PM C16 Business of Insurance -Practice Exam Questions EXAM QUESTIONS WITH COMPLETE SOLUTION GUIDE (A+ GRADED 10…
pages 3-3 and 3-13. the economic theory of supply
and demand proposes that more resources will be
allocated to a product that increases revenue. The law
of supply provides that the higher the price, then
more will be supplied. the law of demand provides
that, with all other factors equal, less will be
demanded as the price rises.
For the insurance market, supply is represented by the
capacity of the market, or the willingness of insurers
to insure risks. The demand is represented by
consumers' need for insurance coverage. In most
cases consumers have some flexibility about the level
of insurance they purchase, but they generally do not
Explain the economic laws
have the freedom to choose not to purchase it. this is
of Supply and Demand,
the case for automobile insurance, which is mandated
and explain why these
by law, and as a result demand remains fairly constant.
laws do not strictly apply
In addition, since auto insurance rate and availability
to automobile insurance.
are regulated, supply tends to fluctuate less, even
when prices are low. Insurers do not have the
flexibility to increase prices to where they want, nor
do they have the freedom to choose not to provide
insurance.
In these ways, both the supply and demand of auto
insurance is significantly influenced by regulation, and
less by market forces.
Rate peaks and valleys are mostly caused by
problems with supply rather than a change in demand.
This is not so evident with automobile insurance, given
that its supply and price is regulated in most
jurisdictions.
https://quizlet.com/1058477141/c16-business-of-insurance-practice-exam-questions-exam-questions-with-complete-solution-guide-a-graded-100-veri… 2/24
, 7/4/25, 1:23 PM C16 Business of Insurance -Practice Exam Questions EXAM QUESTIONS WITH COMPLETE SOLUTION GUIDE (A+ GRADED 10…
1.Product or service overview: what will be the
features, pricing structure, distribution strategy,
positioning, promotions and advertising that will be
used to attract customers. the products need to be
Your employer, Reliable
responsive to consumer needs. Perhaps the insurer
Insurance Brokers, has
will offer complementary services and products.
asked you to prepare a
2. A marketing plan must include tracking and
Marketing Plan. Identify
evaluating results. this can be done in various ways,
and describe two of the
including a tracking number or code, a promotion
key components you will
code, a survey to evaluate customer satisfaction,
include in your plan.
evaluation of complaints.
3. Budget and resources description. All marketing
budgets are limited, and need someone to be held
accountable for it.
The investment markets have a significant impact on
insurance companies because they hold a significant
amount of capital investments, and rely on investment
returns to augment underwriting profits. The
investment markets generally are in a bull market
when there is a soft insurance market. this is because
an insurer can afford to compete more on premiums
Discuss the impact of the
because they know they will make it up on strong
stock market on the
investment returns, and when investment returns
insurance industry.
wane, an insurer takes steps to increase its
underwriting profit by increasing prices and
tightening up policy terms and requirements, such as
loss control.
Also, in economic downturns, insurance purchasers
tend to be more cautious of their assets, and rely
more on insurance.
https://quizlet.com/1058477141/c16-business-of-insurance-practice-exam-questions-exam-questions-with-complete-solution-guide-a-graded-100-veri… 3/24
