1.7 Insurance Principles FINAL EXAM (MASTER)

1. Which of the following is a characteristic of an “insurable risk”?

An insured being “made whole again” is an example of the principle of:

The mathematical principle on which insurance is based, it says that the more exposure units in the mix, the easier it becomes to predict the group’s losses, is the definition of:

Storing gasoline in a home is an example of:

Not purchasing collision insurance on an older car is an example of what risk management technique?

Installing a burglar alarm is an example of what risk management technique?

Which one of the following is not one of the major lines of insurance:

What is the term that describes a policy covering small, valuable articles that can be carried anywhere?

Where does one find a list of the types of property that may be written by marine insurers?

In which state was the “standard fire policy” developed?

Which one of the following is not a type of casualty insurance?

Those who do not own a home but would like to obtain a personal liability policy may purchase what type of policy?

Which of the following lists the four types of voluntary insurers:

Why does the government offer insurance?

“Combined ratio” measures:

Insurance forms a basis of:

A reciprocal is managed by:

Who owns a mutual insurer?

What is the term given to a reciprocal or mutual that can go back to its policyholders for more money if needed to cover the expenses for a year?

Which of the following is not a characteristic that is unique to the insurance contract:

Which of the following are found on an insurance policy’s declarations page?

Which of the following is not a way in which property is insured:

A restaurant suffers a fire. While closed, the owner loses income. That loss of income is referred to as a(n):

An insurance agent knows that one of his customers is conducting a dangerous operation in the insured home. Which one of the following duties requires the agent to report this activity to the insurer?

What is the term given to the practice of an insurance agent using an insurer’s premiums for his own benefit?

What is the blanket term that applies to anyone who sells insurance?

What is the term for the ability of an independent insurance agent to place his customers with any of the companies he represents?

What is the term for an insurance agent who has a contract with one insurer?

Insurance companies who sell their products through salaried employees are:

 Which one of the following is not a responsibility of an insurance intermediary?

Which of the following is not a department in a typical insurance company:

Which of the following best describes the information an underwriter may obtain on an applicant?

Which of the following best describes a physical hazard:

Which of the following best describes a moral hazard:

Which of the following is not a typical duty of an insurer’s marketing representative:

Which of the following is not a step in the claims process:

A public adjuster is:

Which of the following is one way a state’s department of insurance regulates insurance companies: