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CPCU 520 Practice Test Questions with Verified Answers
CPCU 520 Practice Test Questions with Verified Answers
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CPCU 520 Practice Test Questionswith Verified Answers
Which one of the following functional areas of Keithly can assist Alex with
this audit's irregularity? - -Special Investigation Unit
-Which one of the following best describes a FAIR plan and its insureds? - -
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? - -Risk
control
-All corporations are obligated to promote the well-being of society. At the
minimum, this obligation demands that the insurer should - -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? - -Actuarial
-Property-casualty insurers can be classified in which one of the following
ways? - -Licensing status
-Which one of the following statements is correct with regard to an insurer's
goals? - -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? - -Risk-
focused approach
-Which one of the following statements regarding licensing of insurers or
insurance personnel is true? - -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? - -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 - -Comply with state consumer protection laws.
, -Every state insurance department is headed by a state insurance
commissioner, a director, or by a - -Superintendent.
-How often does the National Association of Insurance Commissioners (NAIC)
meet to discuss important problems and issues in insurance regulation? - -
Three times a year
-Which one of the following statements is correct? - -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 - -Twisting.
-All states attempt to ensure that continuous auto insurance coverage is
available to consumers by - -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? - -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? -
-Franchise marketing
-The principal method of determining a prospect's insurance needs is
through - -Completing a risk management review for the prospect.
-An agency bill process in which the producer is usually not required to pay
the insurer until the premium is collected from the policyholder is known as -
-The item basis.
-Which one of the following statements is true regarding traditional
marketing systems for insurance? - -A principal characteristic that
distinguishes one traditional marketing system from another is the
ownership of policy expirations.
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