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FIN 446 EXAM 2 QUESTIONS & ANSWERS VERIFIED 100% CORRECT!!
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FIN 446 EXAM 2 QUESTIONS & ANSWERS VERIFIED 100% CORRECT!!
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FIN 446 EXAM 2QUESTIONS &
ANSWERS VERIFIED
100% CORRECT!!
FIN 446
Evatee 8/29/24 FIN 446
,FIN 446 EXAM 2 QUESTIONS & ANSWERS
VERIFIED 100% CORRECT!!
The term risk control refers to
A. A risk management technique to expand policy coverages.
B. An activity to improve insurer premium volume.
C. A technique to prevent or mitigate losses.
D. A technique to assist in the claim adjustment of losses. Answer - C. A
technique to prevent or mitigate losses.
Which one of the following statements is correct?
A. By exercising sound risk control, organizations fulfill occupational safety and
health standards and comply with local, state, and federal laws.
B. While risk control services benefit insurers and policyholders, they have little
or no impact on society as a whole.
C. Policyholders generally consider an insurer's risk control recommendations
to be a source of unnecessary expenses and a financial burden.
D. All states require insurers to provide a minimum level of risk control services
to commercial policyholders. Answer - A. By exercising sound risk control,
organizations fulfill occupational safety and health standards and comply with
local, state, and federal laws.
Which one of the following statements is correct regarding insurers'
involvement in safety management programs for insureds?
A. Part of a risk control consultant's role in developing a safety management
program is assisting the insured in establishing risk control goals.
,B. Risk control consultants typically have authority to exercise a management
role in the insured's safety program.
C. Once the safety management program is implemented, the risk control
consultant generally is not able to provide technical assistance in the
monitoring phase of the program.
D. Risk control consultants are usually actively involved in implementing safety
management programs. Answer - A. Part of a risk control consultant's role in
developing a safety management program is assisting the insured in
establishing risk control goals.
Which one of the following statements is correct with respect to developing
safety management programs?
A. Developing a safety management program begins with a complete
evaluation of the policyholder's operations.
B. Less experienced risk control representatives are often assigned to
developing safety management programs.
C. Examples of safety management programs include fire safety, driver safety,
and machine operation safety.
D. Safety management program development can often be done remotely
without the need to visit the policyholder's premises. Answer - A. Developing a
safety management program begins with a complete evaluation of the
policyholder's operations.
Developing a safety management program begins with a
A. Complete evaluation of the policyholder's operations.
B. Service contract to provide periodic testing and maintenance of all fire
protection systems.
C. Series of safety-related subjects.
, D. Positive safety attitude among all workers. Answer - A. Complete evaluation
of the policyholder's operations.
Risk control can assist premium auditing by
A. Reporting the existence of new operations.
B. Providing laboratory analyses.
C. Designing product recall procedures.
D. Developing safety management programs. Answer - A. Reporting the
existence of new operations.
Which one of the following statements is true concerning risk control?
A.
Risk control departments are purely a function of insurers.
B.
Risk control can sell additional lines of coverage.
C.
Risk control can assist marketing by providing advice on improving safety.
D.
Risk control can use claim information to pave the way for the premium audit.
Answer - C.
Risk control can assist marketing by providing advice on improving safety.
All of the following are reasons insurers conduct premium audits, EXCEPT:
A.
To deter and detect fraud
B.
To determine correct premiums
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