Ca Life Exam – Psi With Verified
Answers
A fparticipating fcompany fis falso freferred fto fas fwhich ftype fof finsurer? f-
fCORRECT✅✅Mutual finsurer
An finsurer fowned fby fits fpolicyholders, fis fcalled fa f- fCORRECT✅✅Mutual finsurer
What fis fa fparticipating flife finsurance fpolicy? f- fCORRECT✅✅Contract fthat fallows
fthe fpolicyowner fto freceive fa fshare fof fsurplus fin fthe fform fof fpolicy fdividends
An finsurer fenter finto fa fcontract fwith fa fthird-party fto fensure fitself fagainst flosses ffrom
finsurance fpolicies fit fissues. fWhat fis fthis fagreement fcalled? f-
fCORRECT✅✅Reinsurance
John fowns fan finsurance fcompany fthat fgives fhim fthe fright fto fshare fand fthen fsure
fsurplus. fWhat fkind fof fpolicy fis fthis? f- fCORRECT✅✅Participating
Which fof fthe ffollowing fis fnot fa fcharacteristic fof freinsurance? f-
fCORRECT✅✅Increases fthe funearned fpremium freserved
Which fof fthe ffollowing fis fnot fa fbenefit fof finsurance? f- fCORRECT✅✅Losses fdue fto
ffraud fare feliminated
When fa fmutual finsurer fbecomes fa fstock fcompany, fthe fprocess fis fcalled f-
fCORRECT✅✅Demutualization
Which fof fthe ffollowing fis fa fcontract fthat finvolves fone fparty fwhich findemnifies fanother
fone fa floss farises ffrom fan funknown fevent? f- fCORRECT✅✅Insurance fpolicy
Which fof fthe ffollowing fis fan finsurer festablished fby fa fparent fcompany's floss
fexposure's? f- fCORRECT✅✅Captive finsurers
Which fof fthe ffollowing fis fnot fconsidered fto fbe fa fdefinition ffor fthe fterm f"loss"? f-
fCORRECT✅✅Probability fthat fan fevent fwill foccur
Which fof fthe ffollowing fis fnot fconsidered fa fdefinition fof fa frisk? f- fCORRECT✅✅The
fcause fof floss
Which fof fthe ffollowing fbest fdescribes fthe fstatement; f" fthe fmore ftimes, fand fevent fis
frepeated, fthe fmore fpredictable fthe foutcome fbecomes"? f- fCORRECT✅✅Law fof
flarge fnumbers
, Which fof fthe ffollowing fwould fnot fbe faccomplished fwith fthe fpurchase fof fan finsurance
fpolicy? f- fCORRECT✅✅Risk fis feliminated
Which fof fthe ffollowing fis fa fsituation fwhere fthere fis fa fpossibility fof feither fa floss for
fgain? f- fCORRECT✅✅Speculative frisk
Which fof fthe ffollowing fis fany fsituation fthat fpresents fthe fpossibility fof fa floss? f-
fCORRECT✅✅Loss
An finsurer fhaving fa flarge fnumber fof fsimilar fexposure funits fis fconsidered fimportant
fbecause: f- fCORRECT✅✅the fgreater fthe fnumber finsured, fthe fmore faccurately fthat
fis fher fcan fpredict flosses f& fset fappropriate fpremiums
Which fof fthese fstatements fcorrectly fdescribes frisks? f- fCORRECT✅✅Pure frisk fis
fthe fonly finsurable frisk
Which ftype fof frisk fis fgambling? f- fCORRECT✅✅Speculative frisk
Moral fhazard fis fdescribed fas fthe: f- fCORRECT✅✅increased fchance fof fa floss
fbecause fof fan finsured's fdishonest ftendencies
All fof fthe ffollowing fcircumstances fmust fbe fmet ffor flos fretention fto fbe fan feffective,
frisk fmanagement ftechnique, fexcept f- fCORRECT✅✅Probability fof floss fis funknown
All fof fthe ffollowing fcircumstances fmust fbe fmet ffor flost fattention fto fbe fan feffective
frisk fmanagement ftechnique, fexcept f- fCORRECT✅✅Probability fof floss fis funknown
After fa fpolicy fhas flapsed, fwhich fprovision fallows fthe finsurer fto fcontinue fcoverage f-
fCORRECT✅✅Reinstatement fprovision
In fa flife finsurance fpolicy, fthe fentire fcontract fconsists fof f- fCORRECT✅✅policy fand
fattached fapplication
Which fpolicy fprovision fprotects fthe fpolicy fowner ffrom funintentional flapse fof fthe
fcontract? f- fCORRECT✅✅Grace fperiod
Which fof fthe ffollowing fis fnot fa fcommon flife finsurance fpolicy flater? f-
fCORRECT✅✅Extended fterm
What fan faccidental fdeath fbenefit fis fadded fto fa fwhole flife fpolicy, fhow fdoes fthis faffect
fthe fpolicies fcash fvalue? f- fCORRECT✅✅Policies, fcash fvalue fis fnot faffected
A flife finsurance fpolicy fcan fbe fsurrendered ffor fits fcash fvalue funder fwhich fpolicy
fprovision? f- fCORRECT✅✅Nonforfeiture foptions
Answers
A fparticipating fcompany fis falso freferred fto fas fwhich ftype fof finsurer? f-
fCORRECT✅✅Mutual finsurer
An finsurer fowned fby fits fpolicyholders, fis fcalled fa f- fCORRECT✅✅Mutual finsurer
What fis fa fparticipating flife finsurance fpolicy? f- fCORRECT✅✅Contract fthat fallows
fthe fpolicyowner fto freceive fa fshare fof fsurplus fin fthe fform fof fpolicy fdividends
An finsurer fenter finto fa fcontract fwith fa fthird-party fto fensure fitself fagainst flosses ffrom
finsurance fpolicies fit fissues. fWhat fis fthis fagreement fcalled? f-
fCORRECT✅✅Reinsurance
John fowns fan finsurance fcompany fthat fgives fhim fthe fright fto fshare fand fthen fsure
fsurplus. fWhat fkind fof fpolicy fis fthis? f- fCORRECT✅✅Participating
Which fof fthe ffollowing fis fnot fa fcharacteristic fof freinsurance? f-
fCORRECT✅✅Increases fthe funearned fpremium freserved
Which fof fthe ffollowing fis fnot fa fbenefit fof finsurance? f- fCORRECT✅✅Losses fdue fto
ffraud fare feliminated
When fa fmutual finsurer fbecomes fa fstock fcompany, fthe fprocess fis fcalled f-
fCORRECT✅✅Demutualization
Which fof fthe ffollowing fis fa fcontract fthat finvolves fone fparty fwhich findemnifies fanother
fone fa floss farises ffrom fan funknown fevent? f- fCORRECT✅✅Insurance fpolicy
Which fof fthe ffollowing fis fan finsurer festablished fby fa fparent fcompany's floss
fexposure's? f- fCORRECT✅✅Captive finsurers
Which fof fthe ffollowing fis fnot fconsidered fto fbe fa fdefinition ffor fthe fterm f"loss"? f-
fCORRECT✅✅Probability fthat fan fevent fwill foccur
Which fof fthe ffollowing fis fnot fconsidered fa fdefinition fof fa frisk? f- fCORRECT✅✅The
fcause fof floss
Which fof fthe ffollowing fbest fdescribes fthe fstatement; f" fthe fmore ftimes, fand fevent fis
frepeated, fthe fmore fpredictable fthe foutcome fbecomes"? f- fCORRECT✅✅Law fof
flarge fnumbers
, Which fof fthe ffollowing fwould fnot fbe faccomplished fwith fthe fpurchase fof fan finsurance
fpolicy? f- fCORRECT✅✅Risk fis feliminated
Which fof fthe ffollowing fis fa fsituation fwhere fthere fis fa fpossibility fof feither fa floss for
fgain? f- fCORRECT✅✅Speculative frisk
Which fof fthe ffollowing fis fany fsituation fthat fpresents fthe fpossibility fof fa floss? f-
fCORRECT✅✅Loss
An finsurer fhaving fa flarge fnumber fof fsimilar fexposure funits fis fconsidered fimportant
fbecause: f- fCORRECT✅✅the fgreater fthe fnumber finsured, fthe fmore faccurately fthat
fis fher fcan fpredict flosses f& fset fappropriate fpremiums
Which fof fthese fstatements fcorrectly fdescribes frisks? f- fCORRECT✅✅Pure frisk fis
fthe fonly finsurable frisk
Which ftype fof frisk fis fgambling? f- fCORRECT✅✅Speculative frisk
Moral fhazard fis fdescribed fas fthe: f- fCORRECT✅✅increased fchance fof fa floss
fbecause fof fan finsured's fdishonest ftendencies
All fof fthe ffollowing fcircumstances fmust fbe fmet ffor flos fretention fto fbe fan feffective,
frisk fmanagement ftechnique, fexcept f- fCORRECT✅✅Probability fof floss fis funknown
All fof fthe ffollowing fcircumstances fmust fbe fmet ffor flost fattention fto fbe fan feffective
frisk fmanagement ftechnique, fexcept f- fCORRECT✅✅Probability fof floss fis funknown
After fa fpolicy fhas flapsed, fwhich fprovision fallows fthe finsurer fto fcontinue fcoverage f-
fCORRECT✅✅Reinstatement fprovision
In fa flife finsurance fpolicy, fthe fentire fcontract fconsists fof f- fCORRECT✅✅policy fand
fattached fapplication
Which fpolicy fprovision fprotects fthe fpolicy fowner ffrom funintentional flapse fof fthe
fcontract? f- fCORRECT✅✅Grace fperiod
Which fof fthe ffollowing fis fnot fa fcommon flife finsurance fpolicy flater? f-
fCORRECT✅✅Extended fterm
What fan faccidental fdeath fbenefit fis fadded fto fa fwhole flife fpolicy, fhow fdoes fthis faffect
fthe fpolicies fcash fvalue? f- fCORRECT✅✅Policies, fcash fvalue fis fnot faffected
A flife finsurance fpolicy fcan fbe fsurrendered ffor fits fcash fvalue funder fwhich fpolicy
fprovision? f- fCORRECT✅✅Nonforfeiture foptions
