Insurance Exam 1 Study

Which of the following types of insurance does NOT involve a contract with an external party? a. self insurance b. directors and officers insurance c. property insurance d. life insurance

3330 Which of the following actions represents consideration in an insurance contract? a. paying the premium b. filing a claim c. missing the policy d. endorsing a policy

what is the role of the Insurance Core Principles as it relates to underwriting risks, in the effective management of insurance companies?

When should a company report the cost of an insurancepolicy as an expense?a. When the company first signs the policy.b. When the company pays for the policy.c. When the company receives the benefits from thepolicy over its period of coverage.d. When the company receives payments from the insurance company for its insurance claims.

2) Explain why offer and acceptance is essential to the formation of a binding insurance contract?

The contract between insured and insurer is ______________. a. Coverage b. Premium c. Policy d. Face value

What is the consideration for the insurer in an insurance contract? 1.Premiums Paid 2.Risk Avoidance 3.The literal piece of paper the contract is written on is the consideration 4.An Insurance Contract does not require consideration

Which of the following sections of a commercial general liability policy contains information about limits of insurance and premiums? Declaration Exclusion Condition Insuring agreement

The promises of the insurer are found in the insurance policy. True False

Entity A obtains life insurance for its key employee from Entity B (an insurance company). Entity B cedes the insurance contract with Entity A to Entity C, another insurance company. How should Entity B account for the insurance contract with Entity C?A. using the modified version of the general model applicable for onerous insurance contractsB. using the general modelC. using a modified version of (a) or (b) applicable to reinsurance contracts heldD. using the premium allocation approach

The company selling the insurance policy is the _________________. a. Insurer b. Policy c. Premium d. Insured

Commercial Insurance must legally own the new insurer a. Company A is an established insurer and is primarily interested in having protection against a catastrophic loss arising out of a single occurrence.

What are the differences between an insurance agent and an insurance broker? Discuss.

33) When a policy matures on the death of the insured , it is called as:

In case of life insurance policies with profits, policy holders are given the right to participate in the profits of the business and for this purpose insurance company will pay: a. Claims to policy holders b. Bonus to policy holders c. Consideration to policy holders d. Annuity to policy holders

_____ is a contract that involves compensation for specific potential future losses in exchange for periodic payments and that provides for the transfer of the risk of a loss, from one entity to another, in exchange for a premium. a.Spot contract b.Insurance c.Hedging d. Forward contract

What is the importance of insurance companies?

tell me why the use of reinsurance contributes to the solvency of the ceding insurer.

Discuss how benefits of insurance has sustained the insurance industry to date