What is the underwriter's goal? - ANSWER To write a book of business in which the actual losses approximate the expected losses.
Gertrude is going to become an insurance agent. She would like to work in an agency that
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What is the underwriter's goal? - ANSWER To write a book of business in which the actual losses approximate the expected losses.
Gertrude is going to become an insurance agent. She would like to work in an agency that represents many different insurance companies. Gertrude will go to work for a(n) - ANSWER Independent agency
When a client suffers a loss, MegaInsurers is expected to respond promptly to settle the resulting claim. Depending on the line of insurance, claim costs generally consume between 50 and 90 percent of: - ANSWER The premium dollar.
Anderson Auto Insurance Company has established its rates, and the rates are deemed to be fair by the insurance regulators in the states where Anderson does business. Anderson is very concerned about setting adequate rates because inadequate rates can lead to: - ANSWER Anderson's insolvency.
What role does a state insurance department play in the regulation of policy forms? - ANSWER The state insurance department approves the forms.
Grand Insurance has a number of claims that are being processed, with an estimated value of $4 million. This estimate is known as the: - ANSWER Loss reserves.
Kevin, the owner of ABC Contractors, is issued a commercial general liability policy by Speedy Insurance. The policy states that Speedy Insurance agrees to pay for all liability arising from bodily injury or property damage that occurs during the policy period. This is found in the _________________ of the policy: - ANSWER Insuring agreement.
Frank, a small business owner, is upset because his commercial liability policy is filled with exclusions. His agent should point out all the reasons for the exclusions. Which of the following is NOT a reason for the exclusions? - ANSWER The exclusions help keep insurer profits high.
Andy Agent tells Carrie Businessowner that her business auto policy will be written on a standard form, endorsed with a state-specific endorsement to tailor coverage for her specific needs. Andy tells Carrie that the standard form is advantageous because: - ANSWER It reduces Andy's need to compare numerous insurers' policies word for word to determine which provides the most favorable coverage for Carrie's company.
A commercial property policy written on an "all risks" basis covers losses: - ANSWER From all causes except those specifically listed in the policy as excluded.
Rolf's Roofing depends on Samson's Shingles as its primary supplier of roofing materials. If a fire or other calamity were to damage Samson's manufacturing facility, Rolf's Roofing would have to purchase shingles from other suppliers at a significantly higher cost. What type of coverage does Rolf's Roofing need to add to its standard commercial property policy to insure this loss exposure? - ANSWER Contingent extra expense coverage.
ABC Contractors has procured a commercial property policy. Under most of these types of policies, there are some types of property that are covered only to a limited extent and some which are excluded unless added by endorsement. Under a standard, unendorsed policy issued to a contractor, which of the following property would be covered only to a limited extent? - ANSWER Electronic data such as a database of the contractor's clients and their information.
Under a BAP issued to Ulee Excavation, owned by Alfred and Mary Ulee, which of the following people would fall into the category of "permissive users"? - ANSWER An employee of Ulee using the vehicle with Alfred Ulee's permission..
Most businesses procure liability coverage for: - ANSWER All vehicles.
Liability refers to: - ANSWER The legally enforceable obligation to pay a monetary award for injury or damage caused by one's negligent or statutorily prohibited action.
Carpenter has a workers compensation experience modification of 1.11. As compared with other employers in the same industry, Carpenter's loss experience is: - ANSWER Worse than average.
The owner of the Decatur Demolition Company is surprised when Lance, an employee of Abson Insurance Company (Decatur's insurer), shows up and insists on inspecting Decatur's current job site. Lance points out that: - ANSWER The insurance policy gives Abson the right to inspect Decatur's job site.
Which agency drafts the standard workers compensation and employers liability insurance form in most of the states? - ANSWER National Council on Compensation Insurance (NCCI).
Carter's fruit stand might be exempt from compulsory workers compensation if his business has only ________________ employees. - ANSWER 3, 4, or 5
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