Finance

All of the following are disadvantages of noninsurance transfers EXCEP

All of the following are disadvantages of noninsurance transfers EXCEPT A) The party to whom the potential loss is transferred may be unable to pay. B) The transfer may fail because the contract language is ambiguous. C) The only potential losses that can be transferred are those that are not commercially insurable. D) The noninsurance […]

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Date: September 19th, 2020

Which of the following statements about an excess insurance plan is tr

Which of the following statements about an excess insurance plan is true? A) The insurer does not participate in a loss until the loss exceeds the amount the firm has decided to retain. B) The insurer pays first up to some specified level; the insured then pays all losses exceeding the insurer’s retention level. C) […]

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Date: September 19th, 2020

ABC Insurance retains the first $1 million of each property damage los

ABC Insurance retains the first $1 million of each property damage loss and purchases reinsurance for that part of any property loss that exceeds $1 million. The insurance for property losses above $1 million is called A) excess insurance. B) liability insurance. C) coinsurance. D) primary insurance.     ANSWER Answer: A

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Date: September 19th, 2020

All of the following are disadvantages of using insurance in a commerc

All of the following are disadvantages of using insurance in a commercial risk management program EXCEPT A) There is an opportunity cost because premiums must be paid in advance. B) Considerable time and effort must be spent selecting and negotiating coverages. C) It results in considerable fluctuations in earnings after losses occur. D) Attitudes toward […]

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Date: September 19th, 2020