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Exclusive agency is contracted to sell insurance for one insurer or group of insurers correct answers The difference between an independent agency and an exclusive agency is that an Insurance shortages correct answers Destructive competition in the insurance industry could result in Veronica d...

The primary role of insurance is to correct answers Indemnify individuals and organizations for covered losses. As a single mother on a very tight budget, Ciara is tempted to skimp on her insurance. However, her friend Mehmet tells her not to skimp on insurance, because it will help manage her ca...

Which one of the following statements is correct regarding the benefits provided by insurance? A. Insurance reduces the financial consequences of loss exposures but not the related uncertainty. B. The reduction in losses paid by insurers due to risk control measures benefits individual insureds bu...

Which one of the following best explains why producers should be alert to changes in clients' loss exposures? A. Implemented risk management techniques may prove to be ineffective or become obsolete. B. Knowledge of such changes will inform their efforts to create a list of experts that can be ca...

C. Insurance helps reduce the financial burden to society by compensating accident victims. correct answers Which one of the following statements is correct regarding the benefits provided by insurance? A. Insurance reduces the financial consequences of loss exposures but not the related uncertai...

One of the reasons for insurance regulation is to prevent destructive competition. In which one of the following scenarios would destructive competition be exhibited? correct answers East Insurance comes up with a new rate structure allowing "preferred customers" discounted policies when they cont...

Which of the following represents uncertainty about outcomes that can be negative or positive? correct answers Risk The primary role of insurance is to correct answers Indemnify individuals and organizations for covered losses. The insurance agent suggested that Sally's Snack Shop buy a polic...

Benefits of Insurance correct answers manage cashflow uncertainty, comply with legal requirements, comply with legal requirements, promote risk control activity Pay for Losses correct answers Insurance indemnifies (restores to pre-loss status) individuals and organizations for covered losses M...

Key Components of Insurance correct answers 1. Risk 2. Transfers 3. Pooling Risk correct answers Uncertainty about outcomes, that can be negative OR positive Transfers correct answers Risk of loss in the form of a policy that is given to another party Pooling correct answers Insurers com...

Which of the following is an example of a legal requirement for individuals that could be met through insurance? a. contributing to the growth of the organization b. paying for losses c. obtaining personal auto insurance d. providing a source of investment funds correct answers c. obtaining pers...

Loss exposure correct answers Any condition or situation that presents a possibility of loss, whether or not an actual loss occurs. Premium correct answers The price of the insurance provided for a specific period. Indemnify correct answers To restore a party who has sustained a loss to the sa...

Which one of the following best describes the concept of pooling? correct answers The concept of pooling is that insureds share the cost of each other's losses As a single mother on a very tight budget, Ciara is tempted to skimp on her insurance. However, her friend Mehmet tells her not to skimp...

What are the three primary reasons that the insurance industry is regulated? correct answers 1-to protect consumers 2-To maintain insurer solvency 3- to prevent destructive competition How does the Insurance industry protect its consumers? correct answers By verifying that insurance policies ...

Actual cash value (ACV) correct answers The cost to replace property with new property of like kind and quality less depreciation. Adverse selection correct answers Insuring individuals with a high probability of loss at a cost lower than the insurer would normally charge for that risk because it...