Exam (elaborations)
CPCU 520 Practice Test Questions with correct answers.
- Course
- Institution
CPCU 520 Practice Test Questions with correct answers.
[Show more]
Seller
Follow
Content preview
CPCU 520 Practice Test Questions withcorrect answers
Which one of the following functional areas of Keithly can assist Alex with this audit's irregularity? -
correct answer -Special Investigation Unit
Which one of the following best describes a FAIR plan and its insureds? - correct answer -State-run plans
with cost spread among private insurers in the state
Which one of the following departments provides information to the underwriting department to assist
in selecting and rating risks? - correct answer -Risk control
All corporations are obligated to promote the well-being of society. At the minimum, this obligation
demands that the insurer should - correct answer -Avoid causing any public harm.
Which one of the following insurer functions includes calculating insurance rates, developing rating
plans, estimating loss reserves, and providing predictive modeling services? - correct answer -Actuarial
Property-casualty insurers can be classified in which one of the following ways? - correct answer -
Licensing status
Which one of the following statements is correct with regard to an insurer's goals? - correct answer -A
proprietary insurer must earn competitive profits to raise the capital needed to operate.
The United States regulatory framework has evolved over time into which one of the following
approaches used by insurance regulators today? - correct answer -Risk-focused approach
Which one of the following statements regarding licensing of insurers or insurance personnel is true? -
correct answer -Some states permit the insurance commissioner to deny a license to an otherwise
worthy applicant if the commissioner believes that no additional insurers are needed in the state.
, Which one of the following statements is correct? - correct answer -If insurers become insolvent, future
claims might not be paid and the insurance protection already paid for might become worthless.
One way state insurance regulators help to protect consumers is by reviewing insurance policy forms to
determine whether they benefit consumers and - correct answer -Comply with state consumer
protection laws.
Every state insurance department is headed by a state insurance commissioner, a director, or by a -
correct answer -Superintendent.
How often does the National Association of Insurance Commissioners (NAIC) meet to discuss important
problems and issues in insurance regulation? - correct answer -Three times a year
Which one of the following statements is correct? - correct answer -An insurer does not know what its
actual expenses will be when a policy is sold.
Filip is quoting to get Osakri's business and is not concerned with the adequacy of Mellfor's coverage
with actual cash value on contents. Filip's behavior involving Osakri is known as - correct answer -
Twisting.
All states attempt to ensure that continuous auto insurance coverage is available to consumers by -
correct answer -Restricting the rights of insurers to cancel or nonrenew personal auto insurance policies
Under the terms of her agency contracts, the insurers forward policies promptly to Rhonda's customers
and send a premium invoice with the policy. Insureds are instructed to remit premium payments to their
insurer. The insurers calculate Rhonda's commissions and forward those commission payments to her
monthly. Rhonda is operating under which one of the following payment procedures? - correct answer -
Direct bill basis
Omicron Manufacturing has approached Delta Insurance Brokerage to develop and implement a
voluntary insurance program for life, health, and disability insurance for Omicron's employees. Delta
puts together a program in which employees receive the coverage at discounted rates, and premiums
are deducted from the employees' paychecks. Omicron and Delta are using which one of the following
types of group marketing to offer this program? - correct answer -Franchise marketing
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 Lectphilip. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
85073 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now