RMI 211 Bundled Exams Updated 2024/2025 with complete solutions Graded A+

1) A family's automobile that is a total loss as a result of a collision is an example of which of the following types of risk? I. Speculative risk II. Diversifiable risk A) I only B) II only C) both I and II D) neither I nor II - B 3) Which of the following statements about chance of loss ...

the probability that an event will occur; can be same for two outcomes but may have different objective risks - Chance of loss characterizes the relationship between two or more variables and then uses this characterization to predict values of a variable - regression analysis uncertainty concer...

Which of the following is a common dividend option found in a participating life insurance policy? - paid-up additions Which of the following is a permissible IRA investment alternative? - Mutual funds Becky is considering the purchase of a whole life policy on her own life. She is concerned that...

Enterprise Risk - encompasses all major risks faced by a business firm, which include: pure risk, speculative risk, strategic risk, operational risk, and financial risk Expense Loading - the amount needed to pay all expenses, including commissions, general administrative expenses, state premium t...

sources of information for identifying loss exposures - - risk analysis questionnaires - physical inspection - flow charts - financial statements - historical loss data (most common) What is Risk? - Uncertainty regarding loss Objective Risk - the relative variation of actual loss from expected...

refers to the long-run relative frequency of an event based on the assumptions of an infinite number of observations and of no change in the underlying conditions - Objective Probability a method other than insurance by which a pure risk and its potential financial consequences are transferred to...

All of the following statements about the income tax treatment of individually purchased life insurance are true EXCEPT: Policy owner dividends are received tax-free. Life insurance proceeds paid to a beneficiary in a lump-sum are received tax-free. The annual increase in cash value is not taxab...