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FIN 446 Exam 2 With Questions And 100% ALL DETAILED CORRECT ANSWERS
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JACKLINEFIN 446 Exam 2 With Questions And 100% ALL DETAILED CORRECT ANSWERS
Terms in this set (255)
The term risk control refers to C. A technique to prevent or mitigate losses.
A. A risk management technique to expand policy
coverages.
B. An activity to improve insurer premium volume.
C. A technique to prevent or mitigate losses.
D. A technique to assist in the claim adjustment of
losses.
Which one of the following statements is correct? A. By exercising sound risk control, organizations fulfill occupational safety and health standards
A. By exercising sound risk control, organizations and comply with local, state, and federal laws.
fulfill occupational safety and health standards
and comply with local, state, and federal laws.
B. While risk control services benefit insurers and
policyholders, they have little or no impact on
society as a whole.
C. Policyholders generally consider an insurer's
risk control recommendations to be a source of
unnecessary expenses and a financial burden.
D. All states require insurers to provide a minimum
level of risk control services to commercial
FIN 446 Exam 2
policyholders.
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Which one of the following statements is correct A. Part of a risk control consultant's role in developing a safety management program is assisting
regarding insurers' involvement in safety the insured in establishing risk control goals.
management programs for insureds?
A. Part of a risk control consultant's role in
developing a safety management program is
assisting the insured in establishing risk control
goals.
B. Risk control consultants typically have authority
to exercise a management role in the insured's
safety program.
C. Once the safety management program is
implemented, the risk control consultant generally
is not able to provide technical assistance in the
monitoring phase of the program.
D. Risk control consultants are usually actively
involved in implementing safety management
programs.
Which one of the following statements is correct A. Developing a safety management program begins with a complete evaluation of the
with respect to developing safety management policyholder's operations.
programs?
A. Developing a safety management program
begins with a complete evaluation of the
policyholder's operations.
B. Less experienced risk control representatives
are often assigned to developing safety
management programs.
C. Examples of safety management programs
include fire safety, driver safety, and machine
operation safety.
D. Safety management program development can
often be done remotely without the need to visit
the policyholder's premises.
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Developing a safety management program begins A. Complete evaluation of the policyholder's operations.
with a
A. Complete evaluation of the policyholder's
operations.
B. Service contract to provide periodic testing and
maintenance of all fire protection systems.
C. Series of safety-related subjects.
D. Positive safety attitude among all workers.
Risk control can assist premium auditing by A. Reporting the existence of new operations.
A. Reporting the existence of new operations.
B. Providing laboratory analyses.
C. Designing product recall procedures.
D. Developing safety management programs.
Which one of the following statements is true C.
concerning risk control? Risk control can assist marketing by providing advice on improving safety.
A.
Risk control departments are purely a function of
insurers.
B.
Risk control can sell additional lines of coverage.
C.
Risk control can assist marketing by providing
advice on improving safety.
D.
Risk control can use claim information to pave the
way for the premium audit.
All of the following are reasons insurers conduct C.
premium audits, EXCEPT: To establish current rates
A.
To deter and detect fraud
B.
To determine correct premiums
C.
To establish current rates
D.
To collect ratemaking data
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Which one of the following statements is correct C.
with respect to premium audits? Policyholders are far less likely to submit false or misleading information when they know it will
A. be verified by a premium auditor.
Premium audits generally leave policyholders with
the impression that the insurer is looking for ways
to charge additional premiums.
B.
Premium audits focus strictly on accounting
documents and rarely generate additional
underwriting information about a policyholder.
C.
Policyholders are far less likely to submit false or
misleading information when they know it will be
verified by a premium auditor.
D.
Premium audits are typically conducted by
specially trained representatives of the state
insurance department.
Which one of the following statements is true C.
concerning the premium auditing process? A premium auditor's job involves not only counting loss exposures, but also classifying them
A. correctly.
The process the premium auditor uses is known as
auditing the policy because the focus is on the
exposures identified on the policy.
B.
An examination of the insured's books and
records at the insured's premises is referred to as a
voluntary audit.
C.
A premium auditor's job involves not only
counting loss exposures, but also classifying them
correctly.
D.
The definition of "employee" is the same for both
workers compensation and general liability
policies when the premium base is payroll.
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