RMI insurance exam 1 prep Correct Questions & Answers!!!PACKAGE DEAL

Declarations page - ANSWER Who/what/when is to be insured; info about the insured property or activity Definitions - ANSWER define unusual terms used in the policy or terms that have special meaning Insuring Agreement - ANSWER summarizes "the promise" of what the insurer will cover, for the ...

6) Participants in the private insurance market include all of the following except: A) insurance buyers B) insurance companies C) insurance regulators D) the FDIC - ANSWER Answer: D 7) Which of the following is not provided on the private insurance market? A) Bank deposit insurance B) Life...

risk - ANSWER uncertainty concerning the occurrence of a loss loss exposure - ANSWER any situation or circumstance in which a loss is possible, regardless of whether a loss occurs objective risk - ANSWER the relative variance of actual loss form expected loss, decreases as the number of exposu...

Risk defined - ANSWER - A situation involving exposure to danger - uncertainty concerning the occurrence of a loss - possibility of loss on the person or entity that is insured Peril - ANSWER Cause of a loss - auto accident: collision is the peril Hazard - ANSWER Condition that increases ...

Which one of the following is TRUE? A. It's the total amount of expected losses that causes risk. B. The Law of Large Numbers will work if you group together houses and commercial buildings for purposes of fire insurance. C. Liability risks are relatively easy for insurers to price. D. For ne...

Executor Funds - ANSWER burial expenses, estate settlement costs Income needs of financially-dependent survivors - ANSWER Children Spouse or partner Other dependents (grandchildren, siblings, parents, friends, etc.) Business-related exposures - ANSWER Dependent projects (e.g., client relatio...

centralize loss retention - ANSWER because an organization is able to insure all of its subsidiaries with the same pure captive, it is more likely to be able to a long-term relationship with a reinsurer enables a primary insurer to consistently fulfill producers' requests for insurance - ANSWER ...

RMI 4292 Final Exam Questions & Answers(GRADED A+)RMI 4292 Final Exam Questions & Answers(GRADED A+)RMI 4292 Final Exam Questions & Answers(GRADED A+)RMI 4292 Final Exam Questions & Answers(GRADED A+)

What is the Principle of Indemnity? - ANSWER - States that the insurer agrees to pay no more than the actual amount of the loss; stated differently, the insured should not profit from a loss. - Insurance is a contract of indemnity. What are the methods used by courts to determine actual cash v...

What are the 2 basic forms of an insuring agreement - ANSWER 1. named perils coverage: only perils specifically named in the policy are covered 2. open-perils: all losses are covered except losses specifically excluded Describe the 3 major types of exclusions - ANSWER 1. excluded perils (flood, ...

chapter 5 - ANSWER chapter 5 principle of indemnity - ANSWER The insurer agrees to pay no more than the actual amount of the loss purpose of principle of indemnity - ANSWER -to prevent the insured from profiting from a loss -to reduce moral hazard in property insurance, indemnification is ...

Problems with the health care system in the United States that led to implementation of the Affordable Care Act included 1. Rising healthcare expenditures 2.Considerable waste and inefficiency in the healthcare system A) I only B) II only C) both I and II D) neither I nor II - ANSWER C) bo...

Types of Private Insurers - ANSWER Stock Insurers Mutual Insurers Reciprocal exchanges Lloyd's of London Blue Cross Blue Shield plans Health maintenance organizations (HMOs) Stock Insurers - ANSWER Owned by Stockholders, publicly traded and goal is to profit shareholders Mutual Insurers ...

BPP Additional Coverages and Coverage Extensions: - ANSWER provides several supplemental coverages in addition to the basic coverages, coverage extensions: apply only if at least 80% coinsurance or values reporting is shown in the declarations Debris Removal: - ANSWER part of policy limit plus $1...