Property and Casualty Insurance - quiz 9 - Amrit Karki
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Question 1 of 10
1. Question
The Bomhuetter Ferguson method formally combines
Correct
It only uses initial loss ratio expectations to the extent that losses are not paid or reported In addition, it assumes that past experience is not fully representative of the future.
Incorrect
It only uses initial loss ratio expectations to the extent that losses are not paid or reported In addition, it assumes that past experience is not fully representative of the future.
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Question 2 of 10
2. Question
In closure method to estimating ultimately paid losses
Correct
A second frequency and severity approach to estimating ultimately paid losses is the closure method
Incorrect
A second frequency and severity approach to estimating ultimately paid losses is the closure method
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Question 3 of 10
3. Question
With the closure method. the loss reserve is determined as
Correct
The projected incremental paid losses are determined by multiplying the projected paid severity by the estimated number of claims to be closed at each development year
Incorrect
The projected incremental paid losses are determined by multiplying the projected paid severity by the estimated number of claims to be closed at each development year
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Question 4 of 10
4. Question
The projected incremental paid losses are determined by
Correct
We analyze the proportion of closed claims triangle to estimate the number of claims that will be closed at each development year.
Incorrect
We analyze the proportion of closed claims triangle to estimate the number of claims that will be closed at each development year.
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Question 5 of 10
5. Question
The core mechanism of insurance is used to
Correct
The insured pool is a large collection of independent policyholders then the per-unit risk will be greatly reduced and will be manageable for the insurance company
Incorrect
The insured pool is a large collection of independent policyholders then the per-unit risk will be greatly reduced and will be manageable for the insurance company
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Question 6 of 10
6. Question
When an individual takes out a mortgage on the property or takes out a loan to purchase a vehicle which of the following criteria must the lender fulfill?
Correct
It is to protect the lender’s insurable interest in the property
Incorrect
It is to protect the lender’s insurable interest in the property
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Question 7 of 10
7. Question
Most insurance companies offer an option whereby the policy unit limit is increased automatically each the region behind this is
Correct
If the homeowner selects this option, the coinsurance penalty is waived if the insured value falls below 80% of full coverage
Incorrect
If the homeowner selects this option, the coinsurance penalty is waived if the insured value falls below 80% of full coverage
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Question 8 of 10
8. Question
The coverage on the dwelling and other buildings under the homeowner’s policy provides replacement cost coverage if
Correct
If the coinsurance clause has been satisfied actual cash value specified in the policy and the coinsurance provision does not apply.
Incorrect
If the coinsurance clause has been satisfied actual cash value specified in the policy and the coinsurance provision does not apply.
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Question 9 of 10
9. Question
In the Homeowners insurance, the Inside Limit applies to certain losses which indicate.
Correct
Also, there will be inside limits on the coverage for jewelry, silverware, and art
Incorrect
Also, there will be inside limits on the coverage for jewelry, silverware, and art
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Question 10 of 10
10. Question
The homeowner’s insurance policy is not meant to cover buildings used for
Correct
Homeowner policy does not cover building used for commercial purpose
Incorrect
Homeowner policy does not cover building used for commercial purpose