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CPCU 540 Vocabulary Questions And Answers With Verified Solutions 100% Correct!!!
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CPCU 540 Vocabulary Questions And Answers With Verified Solutions 100% Correct!!!
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By: rlawk02 • 2 months ago
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CPCU 540 Vocabulary Questions AndAnswers With Verified Solutions 100%
Correct!!!
Loss Ratio - ANSWER✔✔ A ratio that measures losses and LAE expenses against
earned premiums and that reflects the % of premiums being consumed by losses
Reserve - ANSWER✔✔ The amount the insurer estimates and sets aside to pay on
an existing claim
Insurance Fraud - ANSWER✔✔ Any deliberate deception committed against an
insurer or an insurance producer for the purpose of unwarranted financial gain
Special Investigation Unit (SIU) - ANSWER✔✔ A division set up to investigate
suspicious claims, premium fraud, or application fraud
Predictive model - ANSWER✔✔ A model used to predict an unknown outcome by
means of a defined target variable
Teleamtics - ANSWER✔✔ The use of technological devices to transmit data via
wireless communication and GPS tracking
Internet of Things (IoT) - ANSWER✔✔ A network of objects that transmit data to
each other and to central hubs through the internet
Working capital - ANSWER✔✔ The funds available to support operations
, Capital structure - ANSWER✔✔ A corporation's mix of long-term debt and equity
Net income - ANSWER✔✔ The difference between revenues (such as money
received for goods or services) and expenses (such as money paid for
merchandise, rent, and insurance)
Unrealized capital gain - ANSWER✔✔ The profit not yet earned on a held asset
when it exceeds its original purchase price but hasn't been sold
Unearned premium reserve - ANSWER✔✔ An insurer liability representing the
amount of premiums received from policyholders that aren't yet earned
Loss reserve - ANSWER✔✔ An estimate of the amount of money the insurer
expects to pay in the future for losses that have occurred; In financial statements,
a liability on an insurer's balance sheet that shows the estimated amount that will
be required to settle claims that have occurred but not yet been paid
Loss adjustment expense reserves - ANSWER✔✔ Estimates of the future expense
that an insurer expects to incur to investigate, defend, and settle claims for losses
that have already occurred
Statement of cash flows - ANSWER✔✔ The financial statement that summarizes
the cash effects on an organization's operating, investing, and financing activities
during a specific period
Generally accepted accounting principles (GAAP) - ANSWER✔✔ A common set of
accounting standards and procedures used in the preparation of financial
statements to ensure consistency of presentation and reported results
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