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Cpcu 540: Contributing To Financial Performance Questions And Answers With Verified Solutions 100% Correct!!! $11.99   Add to cart
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Cpcu 540: Contributing To Financial Performance Questions And Answers With Verified Solutions 100% Correct!!!

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Cpcu 540: Contributing To Financial Performance Questions And Answers With Verified Solutions 100% Correct!!!

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  • August 13, 2024
  • 60
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • loss ratio formula
  • what do staff
  • cpcu 540 contributing to financial performance qu
  • in the claim function how is supporting the insur
  • what is an insurers line influenced by
  • what do line underwriters do

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  • Cpcu
  • Cpcu

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Cpcu 540: Contributing To Financial
Performance Questions And Answers
With Verified Solutions 100% Correct!!!
In the claim function, how is supporting the insurer's profit goal accomplished? -
ANSWER✔✔ through controlling expenses


What is an insurer's line influenced by? - ANSWER✔✔ the maximum amount of
insurance or limit of liability allowed by insurance regulations


Loss Ratio Formula - ANSWER✔✔


What do line underwriters do - ANSWER✔✔ · Select insureds
· Classify and price accounts
· Recommend coverage
· Manage a book of business
· Support producers and insureds
· Support marketing


What do staff underwriters do - ANSWER✔✔ · Research market
· Formulate underwriting policy
· Revise underwriting guidelines
· Evaluate loss experience
· Research and develop coverage forms
· Review rates

,· Arrange reinsurance
· Assist others
· Conduct audits
· Educate and train


Am I a line or staff underwriter - ANSWER✔✔ line


What are the three specific ratios use to measure an insurer's underwriting
performance - ANSWER✔✔ loss ratio


expense ratio


combined ratio


What are unfair underwriting practices - ANSWER✔✔ o Discriminating unfairly
when selecting loss exposure
o Misclassifying loss exposures
o Cancelling or nonrenewing policies contrary to statutes, rules, and policy
provisions
o Using underwriting rules or rates that are not state approved
o Failing to apply newly implemented underwriting and rating factors to renewals


What are unfair claim and settlement practices - ANSWER✔✔ o Knowingly
misrepresenting important facts or policy provisions
o Failing to properly investigate and settle claims

,o Failing to make good-faith effort to pay claims when liability is reasonably clear
o Settling a claim for less than what a reasonable person expects, based on
advertising


What is the focus of finance activities - ANSWER✔✔ obtaining and managing an
organization's capital


Will policyholders' surplus be over or understated if insurer loss reserves are too
low? - ANSWER✔✔ overstated


What three factors does an insurer's profitability depend on - ANSWER✔✔
revenue


expenditures


ability to absorb risk


What are an insurer's primary sources of revenue - ANSWER✔✔ premiums


investment income


revenue from the sale of ancillary risk management services


An insurer's ability to absorb risk is largely dependent on what - ANSWER✔✔
surplus

, loss reserve adequacy


investment performance


To be help be a risk management partner for a customer, what must insurers do -
ANSWER✔✔ help customers identify, avoid, and minimize losses rather than just
provide coverage for them


What factors can gauge how well insurers are meeting customer expectations -
ANSWER✔✔ reviews


customer satisfaction data


retention ratio and lapse ratio


insurer-producer relationships


What are some unfair underwriting practices - ANSWER✔✔ discriminating
unfairly when selecting loss exposures


misclassifying loss exposures


cancelling or nonrenewing policies contrary to statutes, rules, and policy
provisions


failing to apply newly implemented underwriting and rating factors to renewals

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