Understanding Insurance Underwriting FINAL EXAM (GA 47257) Copy

At its most basic level, the purpose of underwriting is to decide which of the following?

The job of an underwriter is to do which of the following?

Which of the following helps determine which factors the underwriter uses to evaluate the subject seeking insurance?

Which of the following describes the type of documents an underwriter would want to help in his or her evaluation?

Which of the following describes a realistic workload for a fairly normal underwriter?

Which of the following is true of most property and casualty underwriters?

When underwriting insurance for clients, underwriters need to know which of the following?

Which of the following is true of the lines covered by most property and casualty underwriters?

An underwriter that works with commercial lines applicants is familiar with which of the following?

An underwriter that works with personal lines applicants is familiar with which of the following?

An underwriter that would use medical history to evaluate a client’s insurability would most likely be which of the following?

Liability underwriters must stay up to date on which of the following?

Traditionally, a group underwriter creates a rate for which of the following?

A group insurance policy that offers individual rates saves money by reducing which of the following?

Insurance applicants can be accepted by an insurer in which of the following ways?

Applicants are rejected by underwriters for which reason?

Applicants are issued policies on a standard basis for which of the following reasons?

Applicants are issued policies on a preferred basis for which of the following reasons?

Applicants are issued policies on a substandard basis for which of the following reasons?

Policies issued on a preferred basis can come with what advantage?

Policies issued on a substandard basis can come with which disadvantage?

When is a policy no longer in need of underwriting?

Reviewing a client’s information on an annual basis is done for which of the following reasons?

An underwriter helps determine which of the following?

In order to avoid intentional losses, the underwriter will try to establish which of the following?

Under property insurance, a insured client must meet which of the following requirements?

Insurable interest in a life insurance evaluation must be established in which of the following ways?

Which of the following is one of the four elements of a legal insurance contract?

States have placed regulations on property-casualty insurance in order to prevent which of the following?

A sophisticated business purchaser is likely to be classified as which of the following for the sake of state regulations?

An exempt policy holder is exempt from which of the following?

Which of the following losses would not be insurable?

Which of the following losses would be insurable?

A pure risk must have the potential for which two results?

A definable loss is a loss that can be defined by which of the following?

What two kinds of losses must insurers calculate for their clients?

Why are insurers not capable of covering losses that affect many people simultaneously?

Which of the following describes an occasion when intentional losses are insurable?

Which document supplies most of the information needed for underwriting?

Which part of underwriting is often directly impacted by state law?

Underwriters may use which three broad methods to assign rates?

When an underwriter uses his or her own knowledge and experience to determine a rate, he or she is using which rate assignment method?

When an underwriter uses a predetermined rate found in a manual, they are using which rate assignment method?

Heavily regulated lines of insurance are most likely to use which of the following as their rate assignment method?

If an underwriter is modifying manual rates based on specific characteristics of risks, he or she is using which rate assignment method?

When a competitive market does not exist for some clients, what action does the state usually undertake?

Besides rates, underwriters can also require applicants to do which of the following?

Life insurance applications do not generally require which of the following?

How do group health insurance applications compare to individual health insurance options?

The most difficult aspect of underwriting disability income insurance is which of the following?

Which of the following details would be found on a homeowner’s application?

Which of the following is illegal to use as a factor in determining automobile insurance rates?

Professional liability and errors and omissions applications require what?

Why do professional liability and errors and omissions applications require so much detailed information?

Inland marine personal property applications include more information about which of the following than other forms of insurance?

Ocean marine insurance is intended to cover which of the following?

Which of the following is true of worker’s compensation?

Who fills out an APS for a health insurance applications?

Which of the following regulates credit and consumer reports?

Which party has the final say on if an investigative report is to be prepared?

Which types of insurance are most likely to have a site inspection as part of their application process?

Which of the following is NOT one of the three hazards discussed in this course?

An agent’s role in the underwriting process typically revolves around which of the following?

Insurance regulations that address insurance rates are trying to establish which of the following?

Which of the following is NOT a method used by the states to set property and casualty rates?

Which of the following is NOT an unfair trade practice we discussed in this course?

What is the general term for transferring a portion or all of the insurance written by one insurer to another insurer?

Which of the following is true of treaty reinsurance?

Which of the following is not a type of treaty reinsurance discussed in this course?

Life insurers can use which of the following methods when they reinsure their clients?

Only one reinsurance option was discussed for disability income insurers, which of the following is that reinsurance type?

Coercing a client to use a specific agent or insurer for a loan is an example of which unfair trade practice?

Which of the following current technological advancements looks like it will have a significant effect of discrimination laws?

How do applications for individual insurance policies compare to applications for group insurance policies?

Replacing rotting boards so that no one gets hurt would be which of the following?