When the corporation sells securities directly to the investment public without involving an investment banker, it is called a privileged subscription. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
All of the following are major rating factors for determining private passenger automobile insurance premiums EXCEPT A) gender. B) age. C) race. D) marital status. ANSWER Answer: C
Date: September 19th, 2020
Which of the following statements about reinsurance facilities for insuring high-risk drivers is (are) true? I. Underwriting losses in the reinsurance facility are shared by all auto insurers in the state. II. An insurer must accept all applicants for insurance, but the insurer has the option of placing high-risk drivers in the reinsurance pool. A) […]
Date: September 19th, 2020
A zero coupon bond pays no annual coupon interest payments. When it matures at the end of 7.5 years it pays out $1,000. If investors wish to earn 2.35% per year on this bond investment, what is the current price of the bond? (Round to the nearest dollar.) A) $875 B) $561 C) $840 D) […]
Date: September 19th, 2020
Which of the following statements about automobile insurers that specialize in insuring high-risk motorists with poor driving records is (are) true? I. The actual premium paid by an applicant is set by the federal government and is independent of an applicant’s driving record. II. The coverages available may be more limited than those written by […]
Date: September 19th, 2020
Sharon lives in a state that has a no-fault automobile insurance law. Under the law, an injured person has the right to sue the negligent driver only if the bodily injury claim exceeds a dollar or verbal threshold. The no-fault law in Sharon’s state is a(n) A) pure no-fault plan. B) modified no-fault plan. C) […]
Date: September 19th, 2020
Disadvantages of automobile insurance plans include which of the following? I. High premiums may cause many high-risk drivers to go uninsured. II. Large underwriting profits have resulted in high-risk drivers subsidizing the cost of insurance for good drivers in the voluntary markets. A) I only B) II only C) both I and II D) neither […]
Date: September 19th, 2020
Stock W has the following returns for various states of the economy: State of the Economy Probability Stock W’s Return Recession 10% -30% Below Average 20% -2% Average 40% 10% Above Average 20% 18% Boom 10% 40% Stock W’s standard deviation of returns is A) 20% B) 14%. C) 17%. D) 10%. ANSWER […]
Date: September 19th, 2020
The negotiated purchase is the most prevalent method of securities distribution in the private sector. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
A few states have dual automobile insurance systems. A motorist can pay a higher premium and retain the right to sue under the tort system, or pay a lower premium and be covered under the state’s no-fault law. This dual system is called a A) pure no-fault plan. B) modified no-fault plan. C) “no pay, […]
Date: September 19th, 2020
