TDI DISASTER EXAM | 120+ QUESTIONS AND ANSWERS | GRADED A+ |

TDI DISASTER EXAM | 120+ QUESTIONS AND ANSWERS | GRADED A+ | Question 1 If Lowest Cost Insurance Company chooses to accept his application for insurance, the insurer is the risk? • Retaining (Correct Answer) • Reducing • Avoiding • Transferring If Lowest Cost Insurance Company declines his application for insurance, the insurer is the risk? • Retaining • Reducing • Avoiding (Correct Answer) • Transferring Mr. Jones' heart attack is best described as his ? Risk Exposure Peril (Correct Answer) Loss If Lowest Cost Insurance Company rates the policy premium in order to accept the risk, the insurer is the risk? • Retaining • Reducing (Correct Answer) • Avoiding • Transferring Question 2 When Mr. Ames policy is issued, who would be considered his ceding company or companies? • ABC Insurance Corp. •AIG • Allstate Insurance • ProActive Corp. (Correct Answer) All of the following Element of Insurable Risk are required by an insurer in order to issue a policy EXCEPT: • The loss must be uncertain in order for an insurer to accept a proposed risk. • Loss must be certain (Correct Answer) • Economic Hardship • Large number of homogenous units Correct If Mr. Ames (the insured) dies, which insurer will issue the check to his loved ones? ProActive Insurer Corp. (Correct Answer) ABC Insurance Corp. AIG Allstate Insurance There are different forms of Reinsuring Agreements between Insurers. ABC Insurance Corp. routinely handles potential risk and reinsures losses as they are accepted by ProActive Insurer Corp. Which form below best describes the reinsuring agreement in effect with ABC Insurance Corp? • Facultative Treaty (Correct Answer) Normal Ceding Question 3 The allows the insurer to predict their future losses in a particular group of policyholders. • Morbidity Table • Loss Ratio • Experience Rating • Law of Large Numbers (Correct Answer) Which of the following groups of people would be considered the best definition of Adverse Selection'? • A group of farmers. (Correct Answer) • A group of young interns • A group of secretaries • A group of college students Which of the following private insurers are considered 'PAR'? Stock Companies Mutual Companies (Correct Answer) Non-Profit Service Organizations Special Non-Profit Organizations Which of the following private insurers are considered NON-PAR'? • Stock Companies (Correct Answer) • Mutual Companies • Non-Profit Service Organizations • Special Non-Profit Organizations Question 4 The Airman's Lodge would be considered to be which type of an insurer? • Reciprocal Insurer • Risk Retention Group • Fraternal Association (Correct Answer) • Purchasing Group This insurer's price per thousand for life insurance for their members started at pennies per thousand. However, this year there were more losses than expected in their earlier planning years. Therefore this type of insurer is allowed (without permission or endorsement to the original policy) to read just their cost per thousand for life coverage and begin charging their members the new pricing immediately. Which type of private insurer best describes this insurer? • Reciprocal Insurer • Lloyd's of London • Fraternal Association (Correct Answer) • Purchasing Group This type insurer would insure Tom Brady's arm as a quarterback and his way of making a living? Reciprocal Insurer Risk Retention Group (Correct Answer) Fraternal Association Purchasing Group 4. This type insurer would provide for hole in one indemnity at a golfing tournament! Reciprocal Insurer Risk Retention Group (Correct Answer) Fraternal Association Purchasing Group Correct Question 5 Best Valued Insurance Company doing business in Atlanta, Georgia would be considered a/an Insurer. • Domestic • Foreign (Correct Answer) • Admitted • Alien Best Valued Insurance Company doing business in Europe would be considered a/an Insurer. • Domestic • Foreign • Admitted • Alien (Correct Answer) Best Valued Insurance Company doing business in Houston, Texas would be considered a/an Insurer. Domestic (Correct Answer) Foreign Admitted Alien 4. Best Valued Insurance Company doing business in Juarez, Mexico would be considered a/an Insurer. Domestic Foreign Admitted Alien (Correct Answer) Question 6 Joe represents six different insurance companies and is paid based on his earned commissions. He is the best example of a/an . • Independent (Correct Answer) • Captive/Exclusive • General Agent • Direct Writer Julie is a supervisor & manages several agents for ABC Insurance Corp. She cannot represent any other insurance carrier except for the one in which she represents now. She is the best example of a/an . • Independent • Captive/Exclusive • General Agent (Correct Answer) • Direct Writer Okay Insurance Corporation has received the strongest financial rating position. Choose which of the following would be the published rating position for public view? 100 A++ A+ Superior (Correct Answer) AAA Betsy Sue works in the bank offering their customers only credit life insurance on their new loans. She does not receive additional compensation if a customer purchases the insurance. She is the best example of a/an . • Independent • Captive/Exclusive • General Agent • Direct Writer (Correct Answer) Question 7 Mr. Jones choose to purchase travel accidental coverage to protect his loved ones for his flight to New York. Which type of Mass Marketing did he purchase? • Direct Response • Franchise Marketing • Non-Insurance Sponsors • Vending Machine (Correct Answer) Mr. Jones is a member of the Business Men Of Texas Association and purchases Life and Health coverage through the association. Which type of Mass Marketing did he purchase? • Direct Response • Franchise Marketing (Correct Answer) • Non-Insurance Sponsors • Vending Machine ABC Insurance Corp. conducts their advertising on television. Which form of mass marketing do they use? Direct Response (Correct Answer) Franchise Marketing Non-Insurance Sponsors Vending Machine ◻ Ā ◻ Ā ◻ r. Edwards received a flyer from Alliance Insurance Corp. through the mail. Which form of mass marketing do he receive? • Direct Response (Correct Answer) • Franchise Marketing • Non-Insurance Sponsors • Vending Machine