Finance

Which of the following statements is (are) true about life insurance c

Which of the following statements is (are) true about life insurance company investments? I. The majority of life insurance company general account assets are invested in bonds. II. The majority of life insurance company separate account assets are invested in stocks. A) I only B) II only C) both I and II D) neither I […]

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Date: September 19th, 2020

Mark has been an underwriter for 20 years. An application he recently

Mark has been an underwriter for 20 years. An application he recently reviewed looked odd to him. The building value in the application seemed far too high, and Mark suspected the applicant might be planning to destroy the property after it is insured. Mark hired an outside firm to investigate the applicant and to prepare […]

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Date: September 19th, 2020

Jan is employed by an insurance company. She reviews applications to d

Jan is employed by an insurance company. She reviews applications to determine whether her company should insure the applicant. If insurable, Jan assigns the applicant to a rating category based on the applicant’s degree of risk. Jan is a(n) A) underwriter. B) actuary. C) loss control engineer. D) claims adjustor.     ANSWER Answer: A

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Date: September 19th, 2020

Beverly lives in a sparsely populated area in northern Idaho. Some ins

Beverly lives in a sparsely populated area in northern Idaho. Some insurance companies marketing coverage in northern Idaho cannot afford to have full-time adjustors there. Several insurers hire Beverly to adjust claims for their insureds. Beverly charges the insurers a fee for each claim that she settles. Beverly is a(n) A) public adjustor. B) adjustment […]

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Date: September 19th, 2020

Ross studied engineering in college. After graduation, he went to work

Ross studied engineering in college. After graduation, he went to work for an insurance company. Ross visits properties insured by his company. He conducts inspections and makes recommendations about alarm systems, sprinkler systems, and building construction. In what functional area does Ross work? A) underwriting B) loss control C) information systems D) claims adjusting   […]

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Date: September 19th, 2020

Morgan was hired by an insurance company after she graduated from coll

Morgan was hired by an insurance company after she graduated from college. Upon completion of a training program, Morgan was assigned to a territory where she adjusts claims of the insurer’s policyowners. Morgan is a(n) A) public adjustor. B) staff claims representative. C) agent. D) independent adjustor.     ANSWER Answer: B

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Date: September 19th, 2020

Liability Insurance Company (LIC) was approached by a regional airline

Liability Insurance Company (LIC) was approached by a regional airline to see if LIC would write the airline’s liability coverage. LIC agreed to write the coverage and entered into an agreement with a reinsurer. Under the agreement, LIC retains 25 percent of the premium and pays 25 percent of the losses, and the reinsurer receives […]

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Date: September 19th, 2020

The unearned premium reserve of an insurer is A) an asset representin

The unearned premium reserve of an insurer is A) an asset representing the investments made with premium income. B) a liability representing the unearned portion of gross premiums on outstanding policies. C) a liability representing claims that have been filed, but not yet paid. D) the portion of the insurer’s net worth belonging to policyowners. […]

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Date: September 19th, 2020

Amy heads the legal staff of a large property and liability insurance

Amy heads the legal staff of a large property and liability insurance company. Amy’s staff is likely involved in which of the following activities? A) reviewing investment options for the insurer’s assets B) reviewing language and policy provisions in insurance contracts C) calculating premiums to be charged for the insurer’s products D) reviewing applications to […]

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Date: September 19th, 2020