OTL PRACTICE EXAM C QUESTIONS AND ANSWERS
c. Spread the losses of a few over many - CORRECT ANSWER✅✅The main function of insurance is to
a. Provide total security for everybody
b. Provide a pool of capital so everyone who suffers a loss can be indemnified
c. Spread the losses of a few over many
d. Provide an aid to credit
d. Forfeiture - CORRECT ANSWER✅✅The loss of a right as a result of the non-performance of some
obligation is called
a. Waiver
b. Non-waiver
c. Scienter
d. Forfeiture
b. Stock companies - CORRECT ANSWER✅✅Which of the following types of insurance carriers operates
for the benefit of its shareholders?
a. Mutual companies
b. Stock companies
c. Government insurers
d. Lloyds
b. Subrogation - CORRECT ANSWER✅✅The procedure whereby an insurer may recover a loss, for which
it has paid its insured, from a responsible party is known as
a. Indemnity
b. Subrogation
c. Spread the losses of a few over many - CORRECT ANSWER✅✅The main function of insurance is to
a. Provide total security for everybody
b. Provide a pool of capital so everyone who suffers a loss can be indemnified
c. Spread the losses of a few over many
d. Provide an aid to credit
d. Forfeiture - CORRECT ANSWER✅✅The loss of a right as a result of the non-performance of some
obligation is called
a. Waiver
b. Non-waiver
c. Scienter
d. Forfeiture
b. Stock companies - CORRECT ANSWER✅✅Which of the following types of insurance carriers operates
for the benefit of its shareholders?
a. Mutual companies
b. Stock companies
c. Government insurers
d. Lloyds
b. Subrogation - CORRECT ANSWER✅✅The procedure whereby an insurer may recover a loss, for which
it has paid its insured, from a responsible party is known as
a. Indemnity
b. Subrogation
