RMIN 2005 Final Exam Questions and
Answers Graded A+
______ insurance is for individuals, families and business - Correct answer-Private
______ insurance is for government entities (cities, school, parishes, city
buildings) - Correct answer-Public
In ______ most risks in this market, aka standard - Correct answer-Admitted
______ contains higher risk, aka nonstandard or surplus lines - Correct answer-
Nonadmitted
In _____ citizens have a choice - Correct answer-Voluntary
In ______ must purchase by law - Correct answer-Involuntary
_________ is a for-profit company, owned by shareholders, and policyholders will
not be assessed if losses are too high - Correct answer-Stock
________ is a not-for-profit company, owned by policyholders, and smaller
mutuals can assess policyholders - Correct answer-Mutual
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, ______ and ______ are formed for the purpose of making the insurance contract
available to policy holders - Correct answer-Mutual
_____ is run by an attorney in fact - Correct answer-Reciprocal insurer
What an example of a reciprocal insurer? - Correct answer-USAA or farmers
insurance group
_______ are groups of investors who combine their resources and employ a
manager who determines which risk to insure - Correct answer-Syndicate
What are the reasons for direct life insurance distribution? - Correct answer-The
insurer needs to maintain close control over the policy
Direct is associated with ________ - Correct answer-Captive agent
Indirect is associated with _____________ - Correct answer-Independent agent
and broker
All except which of the following is considered a commercial property exposure? -
Correct answer-Contents of your residential home
Workers compensation is commonly categorized as either - Correct answer-A
liability exposure or a group benefits exposure
Which of the following is a group benefit that some employers are required by law
to provide to their employees - Correct answer-Health insurance
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Answers Graded A+
______ insurance is for individuals, families and business - Correct answer-Private
______ insurance is for government entities (cities, school, parishes, city
buildings) - Correct answer-Public
In ______ most risks in this market, aka standard - Correct answer-Admitted
______ contains higher risk, aka nonstandard or surplus lines - Correct answer-
Nonadmitted
In _____ citizens have a choice - Correct answer-Voluntary
In ______ must purchase by law - Correct answer-Involuntary
_________ is a for-profit company, owned by shareholders, and policyholders will
not be assessed if losses are too high - Correct answer-Stock
________ is a not-for-profit company, owned by policyholders, and smaller
mutuals can assess policyholders - Correct answer-Mutual
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, ______ and ______ are formed for the purpose of making the insurance contract
available to policy holders - Correct answer-Mutual
_____ is run by an attorney in fact - Correct answer-Reciprocal insurer
What an example of a reciprocal insurer? - Correct answer-USAA or farmers
insurance group
_______ are groups of investors who combine their resources and employ a
manager who determines which risk to insure - Correct answer-Syndicate
What are the reasons for direct life insurance distribution? - Correct answer-The
insurer needs to maintain close control over the policy
Direct is associated with ________ - Correct answer-Captive agent
Indirect is associated with _____________ - Correct answer-Independent agent
and broker
All except which of the following is considered a commercial property exposure? -
Correct answer-Contents of your residential home
Workers compensation is commonly categorized as either - Correct answer-A
liability exposure or a group benefits exposure
Which of the following is a group benefit that some employers are required by law
to provide to their employees - Correct answer-Health insurance
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
