all of the following are factors in determining the replacement cost of real
property except
Answer> actual cash value of the property
expenses associated with an insurers underwriting activity include all of the
following
Answer>
insurance professionals use standard terminology for ...
Which of the following statements is correct regarding characteristics of
ideally insurable loss exposures
Answer> ideally, loss exposures should be spread across a large number of
similar exposure units within the same period
The type of insurance that provides periodic income payments to an insured who
is unable to work because of sickness or injury is
Answer> Disability income insurance
Retention is often used in combination with insurance as a way of treating loss
exposures. One of the major downsides of individuals using retention alone is
Answer> The potential for financial ruin
,A loss exposure is
Answer> Any condition that presents the possibility of a loss
Liability coverage for loss exposures arising from a business organizations
premises and operations, its products, or its completed work is typically
provided by
Answer> Commercial general liability insurance
Though premiums are an obvious cost of insurance, many insureds believe that
are too high because
Answer> Benefits are intangible until loss occurs
Insurance is not the only risk management transfer technique. When
circumstances are appropriate, transfer can be accomplished through
Answer> noninsurance transfer technique
Which one of the following is an example of a fortuitous loss
Answer> An unknown vandal spray-paints graffiti on the insured's garage
,Which one of the following statements is correct regarding the benefits that
insurance provides
Answer> Investment income helps keep insurance premiums at a reasonable
level
Claim buildup is considered to be among which one of the following costs of
insurance
Answer> increased losses
The primary role of insurance is to
Answer> indemnify individuals and organizations for covered losses
Coverage for money, securities, and other property from various causes of loss
such as burglary, robbery, theft, and employee dishonesty typically is provided
by
Answer> commercial crime insurance
, Which of the following is an opportunity cost of insurance
Answer> An insureds funds that could be invested elsewhere if purchasing
insurance were not necessary
Coverage for miscellaneous types of property such as movable property, goods
in domestic transit, and property use in transportation and communication,
typically is provided by
Answer> inland marine insurance
For insurers to utilize pooling most effectively and prevent catastrophic losses,
the insured exposure units need to be
Answer> independent
Some loss exposures are not easy to retain, avoid, or control. What risk
management techniques is frequently used to treat such exposures
Answer> transfer
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