Question 1

Successful underwriting occurs when an insurer has few, if any, losses from a group of exposures it accepts for insurance.

Accepted Answer

A) True 
 B)False

Question 2

When the number of exposure units in an insured group is larger, the degree of credibility of resulting loss experience will be

Accepted Answer

A)  increased, 
B)  decreased, 
C)  changed only slightly, 
D)  credibility is unaffected by the number of exposure units. 
A)  increased, 
B)  decreased, 
C)  changed only slightly, 
D)  credibility is unaffected by the number of exposure units.

Question 3

Match the descriptions with their terms:
-A type of pro-rata reinsurance treaty in which both premiums and losses are divided according to a given percentage for each participant is a/an _________________.

Accepted Answer

A)  ceding company 
B)  cession 
C)  credibility 
D)  excess line treaty or first surplus treaty 
E)  excess-of-loss treaty
F) formal facultative agreement
G) severity
H) gross premium
I) independent adjusters
J) informal facultative agreement
K) inspection report
L) loading
M) loss ratio
N) manual, or class, rating
O) merit, or individual,
P) policy writing
Q) pools or syndicates
R) preferred risks
S) production
T) pure premium
U) quota share treaty
V) rate making
W) rating bureau, or rate-making association
X) reinsurance
Y) reinsurance pool or exchange
Z) schedule rating 
A)  ceding company 
B)  cession 
C)  credibility 
D)  excess line treaty or first surplus treaty 
E)  excess-of-loss treaty
F) formal facultative agreement
G) severity
H) gross premium
I) independent adjusters
J) informal facultative agreement
K) inspection report
L) loading
M) loss ratio
N) manual, or class, rating
O) merit, or individual,
P) policy writing
Q) pools or syndicates
R) preferred risks
S) production
T) pure premium
U) quota share treaty
V) rate making
W) rating bureau, or rate-making association
X) reinsurance
Y) reinsurance pool or exchange
Z) schedule rating

Question 4

The main objective of underwriting is to reject poor risks.

Accepted Answer

A) True 
 B)False

Question 5

Facultative reinsurance is the most complex form of reinsurance.

Accepted Answer

A) True 
 B)False

Question 6

The amount charged per unit of exposure is known as the premium.

Accepted Answer

A) True 
 B)False

Successful underwriting occurs when an insurer has few, if any, losses from a group of exposures it accepts for insurance.

When the number of exposure units in an insured group is larger, the degree of credibility of resulting loss experience will be

Match the descriptions with their terms: -A type of pro-rata reinsurance treaty in which both premiums and losses are divided according to a given percentage for each participant is a/an _________________.

The main objective of underwriting is to reject poor risks.

Facultative reinsurance is the most complex form of reinsurance.

The amount charged per unit of exposure is known as the premium.

Introduction to Risk

Risk Identification and Evaluation

Property and Liability Loss Exposures

Life, Health, and Loss of Income Exposures

Risk Management Techniques: Noninsurance Methods

Insurance As a Risk Management Technique: Principles

Insurance As a Risk Management Technique: Policy Provisions

Selecting and Implementing Risk Management Techniques

Risk Management and Commercial Propertypart I

Risk Management and Commercial Propertypart II

Risk Management and Commercial Liability Risk

Workers Compensation and Alternative Risk Financing

Risk Management for Auto Ownerspart I

Risk Management for Auto Ownerspart II

Risk Management for Homeowners

Loss of Life

Loss of Health

Retirement Planning and Annuities

Employee Benefits: Life and Health Benefits

Employee Benefits: Retirement Plans

Financial and Estate Planning

Risk Management and the Insurance Industry

Government Regulation of Risk Management and Insurance

Filters

Exam 23: Functions and Organization of Insurers

Successful underwriting occurs when an insurer has few, if any, losses from a group of exposures it accepts for insurance.

When the number of exposure units in an insured group is larger, the degree of credibility of resulting loss experience will be

Match the descriptions with their terms: -A type of pro-rata reinsurance treaty in which both premiums and losses are divided according to a given percentage for each participant is a/an _________________.

The main objective of underwriting is to reject poor risks.

Facultative reinsurance is the most complex form of reinsurance.

The amount charged per unit of exposure is known as the premium.

Introduction to Risk

Risk Identification and Evaluation

Property and Liability Loss Exposures

Life, Health, and Loss of Income Exposures

Risk Management Techniques: Noninsurance Methods

Insurance As a Risk Management Technique: Principles

Insurance As a Risk Management Technique: Policy Provisions

Selecting and Implementing Risk Management Techniques

Risk Management and Commercial Propertypart I

Risk Management and Commercial Propertypart II

Risk Management and Commercial Liability Risk

Workers Compensation and Alternative Risk Financing

Risk Management for Auto Ownerspart I

Risk Management for Auto Ownerspart II

Risk Management for Homeowners

Loss of Life

Loss of Health

Retirement Planning and Annuities

Employee Benefits: Life and Health Benefits

Employee Benefits: Retirement Plans

Financial and Estate Planning

Risk Management and the Insurance Industry

Government Regulation of Risk Management and Insurance

Filters