Understanding Insurance Underwriting FINAL EXAM
States have placed regulations on property-casualty insurance in order to prevent which of the following?
Misleading or ambiguous provisions
Who fills out an APS for a health insurance applications?
The applicant's doctor
When underwriting insurance for clients, underwriters need to know which of the following?
The risks the client is involved in and methods for dealing with those risks
Inland marine personal property applications include more information about which of the following than other forms of insurance?
The safekeeping of the property
Which types of insurance are most likely to have a site inspection as part of their application process?
Both commercial insurance and homeowner's insurance
Which of the following is true of treaty reinsurance?
It is an ongoing agreement between the insurer and the reinsurer.
Heavily regulated lines of insurance are most likely to use which of the following as their rate assignment method?
Manual rating
Which of the following losses would not be insurable?
A loss that occurred to many people simultaneously
Insurance regulations that address insurance rates are trying to establish which of the following?
Adequate rates that are not excessive or discriminatory
What two kinds of losses must insurers calculate for their clients?
Actual losses and expected losses
An agent's role in the underwriting process typically revolves around which of the following?
All of the answers supplied are correct
Insurance applicants can be accepted by an insurer in which of the following ways?
All of the answers supplied are correct
Life insurers can use which of the following methods when they reinsure their clients?
All of the answers supplied are correct
Which of the following describes the type of documents an underwriter would want to help in his or her evaluation?
All of the answers supplied are correct
Which of the following is one of the four elements of a legal insurance contract?
Competent parties
Liability underwriters must stay up to date on which of the following?
Court trends in court judgements
Which of the following is NOT an unfair trade practice we discussed in this course?
Double trading
Which of the following current technological advancements looks like it will have a significant effect of discrimination laws?
Genetic information mapping
How do group health insurance applications compare to individual health insurance options?
Group health insurance applications are often simpler
In order to avoid intentional losses, the underwriter will try to establish which of the following?
Insurable interest
Professional liability and errors and omissions applications require what?
More information than most other applications
Replacing rotting boards so that no one gets hurt would be which of the following?
Preventing a risk
An exempt policy holder is exempt from which of the following?
Rate and form requirements
Which part of underwriting is often directly impacted by state law?
Rate determination
Policies issued on a preferred basis can come with what advantage?
The lowest rates for the coverage offered
