Property and Casualty Insurance - quiz 14 - Amrit Karki
Quiz-summary
0 of 10 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Information
Free Practice Questions
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 10 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 points, (0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- Answered
- Review
-
Question 1 of 10
1. Question
If a policyholder has a car accident and the car is “written off” it means.
Correct
From that point of written off, the car is owned by the insurer.
Incorrect
From that point of written off, the car is owned by the insurer.
-
Question 2 of 10
2. Question
If a policyholder has a house fire, the insurer pays for the house to be repaired. In this situation, which of the following will be true
Correct
If it can be shown that the fire was caused by the negligence of a third party (e.g., faulty wiring), the insurer has the right under subrogation to pursue recovery in a lawsuit against the third party
Incorrect
If it can be shown that the fire was caused by the negligence of a third party (e.g., faulty wiring), the insurer has the right under subrogation to pursue recovery in a lawsuit against the third party
-
Question 3 of 10
3. Question
The Bomhuetter Ferguson method assumes that?
Correct
The Bornhuetter Ferguson method is meant to be a stabilizer for long-tail lines or immature data
Incorrect
The Bornhuetter Ferguson method is meant to be a stabilizer for long-tail lines or immature data
-
Question 4 of 10
4. Question
For any insurance to stay in business
Correct
Income includes premium and investment income, and outgo includes all losses
Incorrect
Income includes premium and investment income, and outgo includes all losses
-
Question 5 of 10
5. Question
If the management decides to sell some products below cost, the expected loss from such a marketing decision should come from ?
Correct
The loss of the company must be covered by the owners, not the customers
Incorrect
The loss of the company must be covered by the owners, not the customers
-
Question 6 of 10
6. Question
If the insurance rate is too low which of the following situation will occur?
Correct
Inadequate rates also make senior management. shareholders, and, ultimately, regulators very unhappy since they endanger the insurer’s solvency.
Incorrect
Inadequate rates also make senior management. shareholders, and, ultimately, regulators very unhappy since they endanger the insurer’s solvency.
-
Question 7 of 10
7. Question
Why is it important for an insurance company to encourage loss control?
Correct
Encouraging loss control not only allows the insurer to offer lower rates, but also provides an important service to society by reducing accidents.
Incorrect
Encouraging loss control not only allows the insurer to offer lower rates, but also provides an important service to society by reducing accidents.
-
Question 8 of 10
8. Question
The basic requirements of the regulatory agencies are?
Correct
To ensure fair market price.
Incorrect
To ensure fair market price.
-
Question 9 of 10
9. Question
There may be a public hearing at which the actuary must appear to defend the proposal under cross-examination by lawyers representing the regulatory agency and possibly insurance consumer groups, this is done so too?
Correct
The regulatory agencies rates must be adequate, not excessive, and not unfairly discriminating
Incorrect
The regulatory agencies rates must be adequate, not excessive, and not unfairly discriminating
-
Question 10 of 10
10. Question
If rates were to rise and fall for reasons not understood by the policyholders
Correct
The use of reinsurance helps spread the effects of losses over time, thus enhancing rate stability.
Incorrect
The use of reinsurance helps spread the effects of losses over time, thus enhancing rate stability.