FIN 360 S25 Exam 1

Which of the following is NOT typically specified in an underwriting guide for a P&C company?

The combined ratio is a profitability measure that is equal to the sum of which two ratios?

Techniques for managing risk include all of the following EXCEPT:

What is the purpose of the other insurance provision in P&C insurance contracts?

All of the following are reasons for a primary insurer to use reinsurance EXCEPT

Which of the following typically issues (sells) cat bonds?

Stringent underwriting criteria and high insurance premiums are characteristics of a soft market

Which of the following is NOT typically a requirement for a valid contract

Which of the following is not a primary purpose of a deductible?

Policy loans taken by owners of life insurance contracts appear where on the company's financial statements?

Which of the following is NOT a type of deductible used in individual insurance?

Anti-selection is an important issue for both private and government sponsored insurance

A CRO decided that the cost of buying insurance for a certain risk was too expensive. What risk mgmt techniqe was used?

Which of the following is NOT a way to determine actual cash value (ACV) for the principle of indemnity?

The principle of subrogation applies to both property insurance and life insurance contracts

Which of the following is NOT a legal characteristic of insurance contracts

When must the insurable interest requirement be met for life insurance policies?

Which of the following is NOT a typical way in which insurance companies deal with potential anti-selection?

An earthquake is an example of:

Which of the following is NOT a characteristic of an ideally insurable risk?

A homeowner's policy that covers all losses except those caused by earthquake or flood is what type of policy?

A health ins. policy has a $1,000 aggregate deductible with 80% coinsurance. Howmuch does insurer pay for a $5,000 claim

Reasons for premium loading (gross premium - net premium) include all the following EXCEPT:

Insurance company assets are primarily investments. Which type of investment is the largest by dollar amount?

If P(A destroyed by fire)=2.5% and P(A destroyed by flood)=3.5%, what is P(A destroyed by either fire or flood)?

Which of the following statements concerning objectives of rate making is NOT true?

The extra expense incurred by a family to stay in a hotel while their house is being rebuilt is an example of:

The insurer agrees to pay no more than the actual value of the loss describes which principle of insurance?

Riders are addtions or modifications to a property insurance contract.

A type of reinsurance in which the reinsurer accepts business optionally on a case by case basis is called:

All of the following are ways state insurance departments help ensure that companies remain solvent EXCEPT

The congressinal act that resulted in state regulation of insurance: