RMIN 4000 Test 3 Brown Questions and Answers | Latest Update | 2024/2025 | Already Passed
12 views 0 purchase
Course
RMIN 4000
Institution
RMIN 4000
RMIN 4000 Test 3 Brown Questions and
Answers | Latest Update | 2024/2025 |
Already Passed
What is insurance coverage limit?
An insurance coverage limit is the maximum amount an insurer will pay for a covered loss
under a policy.
How is risk exposure defined in risk management?
Risk e...
RMIN 4000 Test 3 Brown Questions and
Answers | Latest Update | 2024/2025 |
Already Passed
What is insurance coverage limit?
✔✔ An insurance coverage limit is the maximum amount an insurer will pay for a covered loss
under a policy.
How is risk exposure defined in risk management?
✔✔ Risk exposure refers to the potential for financial loss or damage that an organization or
individual faces due to identified risks.
What does underwriting involve in the insurance process?
✔✔ Underwriting involves assessing and evaluating the risks associated with an insurance
application to determine the terms and conditions of coverage.
What is premium pricing and how is it determined?
✔✔ Premium pricing is the amount charged for insurance coverage, determined based on factors
like risk level, coverage limits, and historical data.
1
,What is the purpose of a deductible in an insurance policy?
✔✔ A deductible is the amount the policyholder must pay out-of-pocket before the insurance
coverage begins to pay for a claim.
What is meant by excess insurance?
✔✔ Excess insurance provides additional coverage beyond the limits of a primary insurance
policy, helping to cover larger or unexpected losses.
What is a co-insurance clause in insurance?
✔✔ A co-insurance clause requires the policyholder to share a portion of the financial loss with
the insurer, usually in proportion to the value of the insured property.
How does risk assessment contribute to determining insurance premiums?
✔✔ Risk assessment evaluates the likelihood and potential impact of risks, which helps insurers
set appropriate premiums based on the risk profile.
What does loss adjustment involve in the claims process?
2
, ✔✔ Loss adjustment involves evaluating and processing insurance claims to determine the
amount of compensation owed for covered losses.
What is risk management and what are its key components?
✔✔ Risk management involves identifying, analyzing, and addressing risks to minimize their
impact. Key components include risk identification, risk assessment, and risk control.
What is the role of reinsurance in managing large risks?
✔✔ Reinsurance helps manage large risks by allowing insurers to transfer a portion of their risk
to other insurance companies, reducing their exposure to significant losses.
What is moral hazard and how can it affect insurance claims?
✔✔ Moral hazard occurs when insured parties engage in riskier behavior because they do not
bear the full cost of losses, potentially leading to increased claims.
What does actuarial science contribute to the insurance industry?
✔✔ Actuarial science contributes by using mathematical and statistical methods to analyze risk
and determine appropriate pricing and coverage for insurance policies.
3
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 SterlingScores. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.67. You're not tied to anything after your purchase.
