Exam (elaborations)
RIBO: ENTRY LEVEL 1 Questions with Correct Answers
- Course
- Institution
RIBO: ENTRY LEVEL 1 Questions with Correct Answers
[Show more]
Content preview
RIBO: ENTRY LEVEL 1 Questions with CorrectAnswers
Risk Correct Answer-Chance of a loss
Which type of risk is insured and why? Correct Answer-Pure risk,
because speculative risk is comparable to gambling.
3 Ways risk (management) is dealt with? Correct Answer-REDUCE:
preventative measures
ASSUME/RETAIN: Self-insure
TRANSFER: purchase insurance
Which of the following is not a risk?
A) Assume or retain risk
B) Reduce the risk
C) Doing nothing / avoiding the risk
D) Transfer the risk Correct Answer-C) Doing nothing / avoiding the
risk
Insurer Correct Answer-Insurance company
Stock Insurance company Correct Answer-Owned by shareholders
,Mutual insurance company Correct Answer-Owned by policyholders -
Usually smaller, for Ex., One big claim can flux the premium. Once
these companies become big they are titled stockholders.
Co-operative associations Correct Answer-Not looking to consume
profits, these policies are expected to be cheaper.
Lloyd's of London Correct Answer-Not an insurance company but rather
an insurance market.
Ex. Syndicates are investors for things such as athletes legs, voices etc.
High risk Vs. High reward.
Insured Correct Answer-Who is covered.
Named insured = policy holder (owner)
What is not included in the general types of insurance? Correct Answer-
Life and Health
Application of insurance includes: Correct Answer-Bonds, Liability,
Accident / sickness, Valued items, personal articles coverage/floater
Declaration Correct Answer-Signed approving information provided is
the upmost truth
, Statutory conditions Correct Answer-Provincial laws protecting both
parties being the insured and the insurer
Which of the following is the truest regarding effective and expiry date?
A) 12:00AM, Western time at location of insured.
B) 12:00PM, Standard time at location of insured.
C) 12:01AM, Eastern time at location of insured.
D) 12:01AM, Standard time at location of insured. Correct Answer-D)
12:01AM, Standard time at location of insured.
Agent VS Broker Correct Answer-Agent: Works solely for ONE
insurance company.
Broker: Independent of any insurance company but sells insurance for
them.
Fiduciary, key word? Correct Answer-Money.
Binding Authority Correct Answer-Power given to a broker by a
insurance company to sell a policy.
(Company tells you what you can and cannot sell).
Street light Ex.
Green = insured fits
Yellow = insured has some flaws but they may be over seen
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller cracker. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79650 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now