Beckham

Insuring individuals with a high probability of loss at a cost lower than the insurer would normally charge for that risk because it wasn't aware of the actual risk involved is known as - correct answer Adverse selection A risk control evaluation can make the difference between the applicant's being rejected or accepted by the underwriter. - correct answer True Risk control representatives are responsible for compiling all the information required for a premium audit. - correct answe...

One of the reasons for insurance regulation is to prevent destructive competition. In which one of the following scenarios would destructive competition be exhibited? - correct answer East Insurance comes up with a new rate structure allowing "preferred customers" discounted policies when they continually renew year after year; East eventually loses needed revenue but is rewarded by its competitors leaving the market. Ling has noticed that her neighbor has recovered money for two homeow...

Insurance Company wrote a commercial liability policy for a manufacturer of off-road motorcycles. The potential costs of the insured's loss exposure exceed Insurance Company's capacity. Insurance Company could consider which one of the following types of contractual transferring agreement to meet its needs? - correct answer Reinsurance Mutual Fund Company (MFC) offers a wide array of mutual fund options to investors. Each mutual fund has a different fund objective and set of investment ...

Exclusive agency is contracted to sell insurance for one insurer or group of insurers - correct answer The difference between an independent agency and an exclusive agency is that an Insurance shortages - correct answer Destructive competition in the insurance industry could result in Veronica directly contacts Maria for guidance on how to report a stolen car, Maria provides that, and claims rep Sean takes over after an introduction from Maria - correct answer Maria is a new producer who w...

The primary role of insurance is to - correct answer Indemnify individuals and organizations for covered losses. As a single mother on a very tight budget, Ciara is tempted to skimp on her insurance. However, her friend Mehmet tells her not to skimp on insurance, because it will help manage her cash flows. Which one of the following examples best illustrates Mehmet's point? - correct answer When her car's windshield breaks, Ciara has to pay only $100 of the $600 cost of replacing it. ...

Bill is an insurance producer for and employed by ABC Insurance Company (ABC). He represents only ABC when marketing insurance products, and uses an administrative staff also employed by ABC. Bill is a producer in the - correct answer Direct writer marketing system Because the insurance company usually determines policy wording and the insured has little choice but to "take it or leave it," an insurance contract is a - correct answer Contract of adhesion Which one of the following be...

Loss exposure - correct answer any condition or situation that presents a possibility of loss, whether or not an actual loss occurs Premium - correct answer the price of the insurance coverage provided for a specified period Indemnify - correct answer to restore a party who has sustained a loss to the same financial position that party held before the loss occurred Insured - correct answer any person or organization who is insured under an insurance policy Property-casualty insurance...

Which one of the following best describes the concept of pooling? - correct answer The concept of pooling is that insureds share the cost of each other's losses As a single mother on a very tight budget, Ciara is tempted to skimp on her insurance. However, her friend Mehmet tells her not to skimp on insurance, because it will help manage her cash flows. Which one of the following examples best illustrates Mehmet's point? - correct answer When her car's windshield breaks, Ciara has to...

One distinguishing feature between independent agency systems and other marketing systems is the... - correct answer agency expiration list Foreign Insurer - correct answer An insurer licensed to operate in a state but incorporated in another state Domestic Insurer - correct answer An insurer doing business in the jurisdiction in which it was incorporated Alien Insurer - correct answer An insurer domiciled in a country other than the US Direct Response Marketing System - correct answ...

Which of the following represents uncertainty about outcomes that can be negative or positive? - correct answer Risk The primary role of insurance is to - correct answer Indemnify individuals and organizations for covered losses. The insurance agent suggested that Sally's Snack Shop buy a policy that combines property, crime, and liability coverage into one policy. This is referred to as as a(n) - correct answer Commercial package policy (CPP) Coverage for money and other business pr...