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INS21: Mock Exam! Trivia Quiz

Question 1 of 3

Q1 . The claim handling process includes

Q2 . The parties that might be affected by a property loss include

Q3 . Implementation of the chosen Risk management technique requires that risk manager make decisions concerning:

Q4 . State insurance departments:

Q5 . Reinsurance is a contractual agreement:

Q6 . An independent agent

Q7 . Ideally insurable loss exposures include:

Q8 . Producers can be compensated by

Q9 . Valuation provisions may include

Q10 . If the insurer cancels the policy, the return premium will be calculated usually on a

Q11 . Marketing management

Q12 . A dispute between neighbours can turn into a never-ending feud. Which form of law provides a forum for hearing disputes between private parties?

Q13 . The use of standard forms by insurers leads to a more

Q14 . You have bought a flame red high performance engine car. You were surprised that despite your car has so many great safety features similar to other brand cars, your insurance company charged you more than what it was charging for other brand cars. What could be the reason?

Q15 . Insurance is a risk management techinque called

Q16 . N D Tiwari has been stopped by LAPD for speeding and a ticket has been issued. Which statement is true?

Q17 . Jim canceled his auto policy 315 days after the inception date. The one-year premium is $1,095. Assuming that a year is 365 days, what is Jim's pro rata premium refund?

Q18 . A ________ is a diagram that depicts the flow of a particular operation or set of related operations within an organization.

Q19 . David Beckham wants to Insure his feet to the tune of 10 million dollars each. Which of the following Insurance company will he most likely go to?

Q20 . In insurance terminology, which of the following refers to a book of business?

Q21 . Out-of-court settlements are

Q22 . Under tort law, an individual or organization can face a claim for legal liability on the basis of

Q23 . If you don't understand all of the terms in your auto insurance policy, what should you do?

Q24 . A Captive Insurance company is ______________ .

Q25 . Which of the following is not one of the primary objectives of Insurance regulation?

Q26 . Roadside assistance plans provides services EXCEPT

Q27 . Tom Hanks has been insured by Farmers Insurance company for more than 60 days. Farmers insurance cannot cancel Tom's policy under which of the following circumstances?

Q28 . Match the Column A elements with Column B elements? Column A Column B 1. Mutual Insurance Company A. Salaried employees of the Insurance companies. 2. Direct Writing Agents B. Owned by the policy holders. 3. Independent Adjusters C. Handle claims for the Insurance companies for a fee. 4. Choicepoint D. Investors own the association 5. Lloyd's of London E. CLUE report

Q29 . A ratemaking concept through which actuaries base rates on actuarially calculated loss experience and place insureds with similar characteristics into the same rating class is

Q30 . Which one of the following in the risk management process is inaccurate? 1. Identifying and analyzing loss exposures. 2. Gathering information to support assumptions about the loss exposures. 3. Selecting the most appropriate risk management techniques. 4. Implementing the chosen techniques in a risk management program .

Q31 . Why would an underwriter modify the rate charged for the coverage provided when evaluating an application for insurance?

Q32 . A guaranty fund is:

Q33 . Which of the below is NOT a step in Risk management process

Q34 . A business installs a sprinkler system to reduce the amount of fire damage from potential fires. What kind of Risk management technique is this

Q35 . Which of the following is one of the largest Mutual P & C Insurance companies operating in North America?

Q36 . What is IRDA and which country does it belong to?

Q37 . Which one of the following statements is true regarding types of rates used by insurers?

Q38 . A "___________" letter from your insurer is a notice that even though the company is proceeding to handle your claim, depending on what happens, certain losses might not be covered by the terms of the policy. By such a letter, the company preserves its right to deny coverage at a later date based on the terms of the policy.

Q39 . Binding authority

Q40 . Which is an example of the reduction in value of property?

Q41 . A bailment is

Q42 . What is an SR-22 Document?

Q43 . The two major types of liabilities found on the financial statements of insurers are:

Q44 . Most liability insurance policies exclude coverage for losses intentionally caused by the insured because such losses do not meet which one of the following characteristics of an ideally insurable exposure?

Q45 . In evaluating an application, an underwriter thinks that the class of business is not one that the company wishes to write, but he would need to physically inspect it to be certain. He also realizes that the business is located in an undesirable section of the city. Based on the location alone, the underwriter decides not to issue the policy. According to many state insurance laws, this would be an example of

Q46 . If an Insured is Sued(Dragged to court) does the Insurance Company defend the Insured in court?

Q47 . Clara is insured by IIA Insurance Company. One night, on the way home from work, shewas involved in an auto accident. Clara ran a red light when her brand new Mazda did not have any brakes, and her car struck the pickup driven by Bill, an employee of Big Bob’s Produce Company. Bill was injured, and a claim was filed with IIA Insurance Company for injury to Bob and damage to the pickup. If there had been no injuries and damage to both vehicles had been minor, the claim would most likely be handled by a(n)

Q48 . All of the following are correct, EXCEPT:

Q49 . Rebating is

Q50 . Loss reserves are

Q51 . Loss frequency is

Q52 . If an insurance company refuses to pay a claim that should be paid or offers to settle a claim for less than it knows the claim is worth or denies a claim without adequate investigation, this could give rise to

Q53 . Humongous Insurance Company is considering the purchase of Itty-Bitty Insurance Company. Following is financial data of Itty-Bitty Insurance Company. Expense ratio 39% Loss ratio 57% Investment income ratio 18% The combined ratio for Itty-Bitty Insurance Company is:

Q54 . A ________ is a risk management tool in the form of a checklist or questionnaire listing potential loss exposures that a household or an organization might face

Q55 . Which of the following is a Federal Government Insurance Program?

Q56 . Some insurers now use expert systems in the underwriting process. The primary purpose of these expert systems is to

Q57 . An insurer’s capacity ratio is:

Q58 . Which are the third-party coverages in the below?

Q59 . Brown Company's Policy includes a liberalization clause. Brown's insurer introduces a policy change that broadens coverage at no additional premium. How will this change apply to Brown's existing policy?

Q60 . Which of the following statements best describes the way in which “support for credit” is a benefit of insurance?

Q61 . Kelly Blue Book is ________________ .

Q62 . Compensatory damages are intended to compensate a victim for harm actually suffered and can include

Q63 . Claims-made coverage

Q64 . Humongous Insurance Company is considering the purchase of Itty-Bitty Insurance Company. Following is financial data of Itty-Bitty Insurance Company. Expense ratio 39% Loss ratio 57% Investment income ratio 18% The overall operating ratio is:

Q65 . Being a owner of house in US

Q66 . All of the following are true of insurance company financial statements, EXCEPT:

Q67 . Clara is insured by IIA Insurance Company. One night, on the way home from work, shewas involved in an auto accident. Clara ran a red light when her brand new Mazda did not have any brakes, and her car struck the pickup driven by Bill, an employee of Big Bob’s Produce Company. Bill was injured, and a claim was filed with IIA Insurance Company for injury to Bob and damage to the pickup. Bill’s claim will most likely be handled for IIA Insurance Company by a(n)

Q68 . Select the Correct statement with respect to Auto Insurance in America

Q69 . Basic form coverage

Q70 . All of the following are true, EXCEPT:

Q71 . What is the significance of 1994 Northridge Earthquake?

Q72 . Insurance companies are exempted from Consumer protection laws in some states

Q73 . The World Insurance Report 2008 explores current distribution models and changes in channel usage, and also takes an in-depth look at successful versus at-risk multi-channel strategies. Find out what's driving multi-channel usage in mature markets and how changing customer profiles and behaviors are impacting today's insurance practices. The report identifies growth opportunities for leading insurance companies and features insightful approaches for transforming current insurance practices into tomorrow's winning strategies. Which of the below organizations publish this report?

Q74 . All of these statements about unfair claim practices are correct, EXCEPT:

Q75 . The claim handling process includes

Q76 . The parties that might be affected by a property loss include

Q77 . Implementation of the chosen Risk management technique requires that risk manager make decisions concerning:

Q78 . State insurance departments:

Q79 . Reinsurance is a contractual agreement:

Q80 . An independent agent

Q81 . Ideally insurable loss exposures include:

Q82 . Producers can be compensated by

Q83 . Valuation provisions may include

Q84 . If the insurer cancels the policy, the return premium will be calculated usually on a

Q85 . Marketing management

Q86 . A dispute between neighbours can turn into a never-ending feud. Which form of law provides a forum for hearing disputes between private parties?

Q87 . The use of standard forms by insurers leads to a more

Q88 . You have bought a flame red high performance engine car. You were surprised that despite your car has so many great safety features similar to other brand cars, your insurance company charged you more than what it was charging for other brand cars. What could be the reason?

Q89 . Insurance is a risk management techinque called

Q90 . N D Tiwari has been stopped by LAPD for speeding and a ticket has been issued. Which statement is true?

Q91 . Jim canceled his auto policy 315 days after the inception date. The one-year premium is $1,095. Assuming that a year is 365 days, what is Jim's pro rata premium refund?

Q92 . A ________ is a diagram that depicts the flow of a particular operation or set of related operations within an organization.

Q93 . David Beckham wants to Insure his feet to the tune of 10 million dollars each. Which of the following Insurance company will he most likely go to?

Q94 . In insurance terminology, which of the following refers to a book of business?

Q95 . Out-of-court settlements are

Q96 . Under tort law, an individual or organization can face a claim for legal liability on the basis of

Q97 . If you don't understand all of the terms in your auto insurance policy, what should you do?

Q98 . A Captive Insurance company is ______________ .

Q99 . Which of the following is not one of the primary objectives of Insurance regulation?

Q100 . Roadside assistance plans provides services EXCEPT

Q101 . Tom Hanks has been insured by Farmers Insurance company for more than 60 days. Farmers insurance cannot cancel Tom's policy under which of the following circumstances?

Q102 . Match the Column A elements with Column B elements? Column A Column B 1. Mutual Insurance Company A. Salaried employees of the Insurance companies. 2. Direct Writing Agents B. Owned by the policy holders. 3. Independent Adjusters C. Handle claims for the Insurance companies for a fee. 4. Choicepoint D. Investors own the association 5. Lloyd's of London E. CLUE report

Q103 . A ratemaking concept through which actuaries base rates on actuarially calculated loss experience and place insureds with similar characteristics into the same rating class is

Q104 . Which one of the following in the risk management process is inaccurate? 1. Identifying and analyzing loss exposures. 2. Gathering information to support assumptions about the loss exposures. 3. Selecting the most appropriate risk management techniques. 4. Implementing the chosen techniques in a risk management program .

Q105 . Why would an underwriter modify the rate charged for the coverage provided when evaluating an application for insurance?

Q106 . A guaranty fund is:

Q107 . Which of the below is NOT a step in Risk management process

Q108 . A business installs a sprinkler system to reduce the amount of fire damage from potential fires. What kind of Risk management technique is this

Q109 . Which of the following is one of the largest Mutual P & C Insurance companies operating in North America?

Q110 . What is IRDA and which country does it belong to?

Q111 . Which one of the following statements is true regarding types of rates used by insurers?

Q112 . A "___________" letter from your insurer is a notice that even though the company is proceeding to handle your claim, depending on what happens, certain losses might not be covered by the terms of the policy. By such a letter, the company preserves its right to deny coverage at a later date based on the terms of the policy.

Q113 . Binding authority

Q114 . Which is an example of the reduction in value of property?

Q115 . A bailment is

Q116 . What is an SR-22 Document?

Q117 . The two major types of liabilities found on the financial statements of insurers are:

Q118 . Most liability insurance policies exclude coverage for losses intentionally caused by the insured because such losses do not meet which one of the following characteristics of an ideally insurable exposure?

Q119 . In evaluating an application, an underwriter thinks that the class of business is not one that the company wishes to write, but he would need to physically inspect it to be certain. He also realizes that the business is located in an undesirable section of the city. Based on the location alone, the underwriter decides not to issue the policy. According to many state insurance laws, this would be an example of

Q120 . If an Insured is Sued(Dragged to court) does the Insurance Company defend the Insured in court?

Q121 . Clara is insured by IIA Insurance Company. One night, on the way home from work, shewas involved in an auto accident. Clara ran a red light when her brand new Mazda did not have any brakes, and her car struck the pickup driven by Bill, an employee of Big Bob’s Produce Company. Bill was injured, and a claim was filed with IIA Insurance Company for injury to Bob and damage to the pickup. If there had been no injuries and damage to both vehicles had been minor, the claim would most likely be handled by a(n)

Q122 . All of the following are correct, EXCEPT:

Q123 . Rebating is

Q124 . Loss reserves are

Q125 . Loss frequency is

Q126 . If an insurance company refuses to pay a claim that should be paid or offers to settle a claim for less than it knows the claim is worth or denies a claim without adequate investigation, this could give rise to

Q127 . Humongous Insurance Company is considering the purchase of Itty-Bitty Insurance Company. Following is financial data of Itty-Bitty Insurance Company. Expense ratio 39% Loss ratio 57% Investment income ratio 18% The combined ratio for Itty-Bitty Insurance Company is:

Q128 . A ________ is a risk management tool in the form of a checklist or questionnaire listing potential loss exposures that a household or an organization might face

Q129 . Which of the following is a Federal Government Insurance Program?

Q130 . A policy in which the insurer pays a stated amount in the event of a specified loss (usually a total loss), regardless of the actual value of the loss is known as a

Q131 . Some insurers now use expert systems in the underwriting process. The primary purpose of these expert systems is to

Q132 . An insurer’s capacity ratio is:

Q133 . Which are the third-party coverages in the below?

Q134 . Brown Company's Policy includes a liberalization clause. Brown's insurer introduces a policy change that broadens coverage at no additional premium. How will this change apply to Brown's existing policy?

Q135 . Which of the following statements best describes the way in which “support for credit” is a benefit of insurance?

Q136 . Kelly Blue Book is ________________ .

Q137 . Compensatory damages are intended to compensate a victim for harm actually suffered and can include

Q138 . Claims-made coverage

Q139 . Humongous Insurance Company is considering the purchase of Itty-Bitty Insurance Company. Following is financial data of Itty-Bitty Insurance Company. Expense ratio 39% Loss ratio 57% Investment income ratio 18% The overall operating ratio is:

Q140 . Being a owner of house in US

Q141 . All of the following are true of insurance company financial statements, EXCEPT:

Q142 . Clara is insured by IIA Insurance Company. One night, on the way home from work, shewas involved in an auto accident. Clara ran a red light when her brand new Mazda did not have any brakes, and her car struck the pickup driven by Bill, an employee of Big Bob’s Produce Company. Bill was injured, and a claim was filed with IIA Insurance Company for injury to Bob and damage to the pickup. Bill’s claim will most likely be handled for IIA Insurance Company by a(n)

Q143 . Select the Correct statement with respect to Auto Insurance in America

Q144 . Basic form coverage

Q145 . All of the following are true, EXCEPT:

Q146 . What is the significance of 1994 Northridge Earthquake?

Q147 . Insurance companies are exempted from Consumer protection laws in some states

Q148 . The World Insurance Report 2008 explores current distribution models and changes in channel usage, and also takes an in-depth look at successful versus at-risk multi-channel strategies. Find out what's driving multi-channel usage in mature markets and how changing customer profiles and behaviors are impacting today's insurance practices. The report identifies growth opportunities for leading insurance companies and features insightful approaches for transforming current insurance practices into tomorrow's winning strategies. Which of the below organizations publish this report?

Q149 . All of these statements about unfair claim practices are correct, EXCEPT: