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RMIN 2005 Final Questions and Correct
Answers
All of the following would be considered a commercial property
exposure except
A) Business income
B)damage to your company truck
C) contents of your home
D) the desk in your office building Ans: Contents of your home
Workers compensation is considered either Ans: A liability or
group benefits exposure
Which of the following is a group benefit that some employers are
required by law to provide their employees? Ans: Health
insurance
Insurance that covers city buildings Ans: Public insurance
"If you drive you must purchase auto liability insurance" is an
example of which type of insurance Ans: Involuntary insurance
Sometimes mutual companies will convert to stock companies. The
main reason for this is usually Ans: To get access to immediate
capital
_________ Have to sell more policies to get more capital Ans:
Mutual
Type of insurer that involves members pulling their premiums
together and hiring an attorney in fact to manage their risks Ans:
Reciprocals
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Where are the shares of stock insurers in the top 10 of property
and casualty insurance riders in 2019 traded? Ans: On the NYSE
Lloyds of London is an insurance company Ans: False
All of the following are true about Lloyds managing agent except
A) there are fewer managing agents than there are syndicates
B) the managing agents are like the employees of the Lloyds
syndicates
C) Lloyds has around 50 managing agents
D) they are the Lloyd's investors Ans: They are the Lloyd's
investors
What is the closest to the equivalent of "the insurance company" at
Lloyd's Ans: A syndicate
Life insurers like to market directly for which one of the following
reasons Ans: They want to maintain control over Sailes
Direct writer is also known as a "captive agent" Ans: True
Which of the following companies used direct writers to market
their policies Ans: State farm
An agent that is authorized to represent several different
insurance companies and has limited binding authority Ans: An
independent agent
A broker represents larger, more complex insurance, but never
have binding unless with authority Ans: True
Both independent agents and brokers have all the following
characteristics except
A) both represent multiple insurance companies
© 2025 All rights reserved
RMIN 2005 Final Questions and Correct
Answers
All of the following would be considered a commercial property
exposure except
A) Business income
B)damage to your company truck
C) contents of your home
D) the desk in your office building Ans: Contents of your home
Workers compensation is considered either Ans: A liability or
group benefits exposure
Which of the following is a group benefit that some employers are
required by law to provide their employees? Ans: Health
insurance
Insurance that covers city buildings Ans: Public insurance
"If you drive you must purchase auto liability insurance" is an
example of which type of insurance Ans: Involuntary insurance
Sometimes mutual companies will convert to stock companies. The
main reason for this is usually Ans: To get access to immediate
capital
_________ Have to sell more policies to get more capital Ans:
Mutual
Type of insurer that involves members pulling their premiums
together and hiring an attorney in fact to manage their risks Ans:
Reciprocals
© 2025 All rights reserved
, 2 | Page
Where are the shares of stock insurers in the top 10 of property
and casualty insurance riders in 2019 traded? Ans: On the NYSE
Lloyds of London is an insurance company Ans: False
All of the following are true about Lloyds managing agent except
A) there are fewer managing agents than there are syndicates
B) the managing agents are like the employees of the Lloyds
syndicates
C) Lloyds has around 50 managing agents
D) they are the Lloyd's investors Ans: They are the Lloyd's
investors
What is the closest to the equivalent of "the insurance company" at
Lloyd's Ans: A syndicate
Life insurers like to market directly for which one of the following
reasons Ans: They want to maintain control over Sailes
Direct writer is also known as a "captive agent" Ans: True
Which of the following companies used direct writers to market
their policies Ans: State farm
An agent that is authorized to represent several different
insurance companies and has limited binding authority Ans: An
independent agent
A broker represents larger, more complex insurance, but never
have binding unless with authority Ans: True
Both independent agents and brokers have all the following
characteristics except
A) both represent multiple insurance companies
© 2025 All rights reserved
