OTL EXAM CHAPTER 2 QUESTIONS WITH CORRECT ANSWERS VERIFIED

What two basic categories is the insurance business divided into? - Answer-Life and health insurance, and General insurance What type of licensed intermediary represents only one insurer? - Answer-Exclusive Agents What is the primary function of insurance? - Answer-A method of sharing the losses of a few people among the many Who does the adjuster represent when handling a claims situation? - Answer-Insurer Which term is used to refer to insurance that includes both property and casualty? - Answer-General insurance What type of insurance would cover losses arising from libel and slander? - Answer-Liability insurance What is the relationship between the risk and the insurance premium? - Answer-Insureds with higher risk will pay a higher premium Substituting a certain premium payment in place of an uncertain loss is a description for which secondary function of insurance? - Answer-Aid to security Which occupations are directly employed by the insurance industry? - Answer-Computer technicians and programmers What do you call an independent businessperson who may be hired by an insured to help settle a claim? - Answer-Public Adjuster Which item is not included under loss prevention activities within the secondary functions of insurance? - Answer-Construction regulationsWhat sets out the arrangements between the insured and the insurer concerning premiums, loss settlement, and the subject of insurance? - Answer-Contract