瑞达Rejda保险教材英文练习题08
瑞达 Rejda 保险教材英文练习题08
Principles of Risk Management and Insurance, 11e <Rejda>Chapter 8 Government Regulation of Insurance1> Reasons for regulation of insurance include which of the following?I. Maintaining insurer solvency.II. Ensuring reasonable rates.A> I onlyB> II onlyC> both I and IID> neither I nor IIAnswer: CQuestion Status: Previous Edition2> The right of the states to regulate the business of insurance was first established byA> the South-Eastern Underwriters Association case.B> Paul v. Virginia.C> the Financial Modernization Act.D> the Sherman Act.Answer: BQuestion Status: Previous Edition3> The basis for current state regulation of insurance isA> the McCarran-Ferguson Act.B> Paul v. Virginia.C> the South-Eastern Underwriters Association case.D> the National Association of Insurance Commissioners.Answer: AQuestion Status: Previous Edition4> All of the following statements about the methods of regulating insurance are true EXCEPTA> All states have insurance laws that regulate the operations of insurers.B> Insurers are totally exempt from regulation by federal agencies and laws.C> The courts regulate insurance in many ways, including the interpretation of policy clauses and provisions.D> State insurance commissioners, through administrative rulings, have considerable power over insurers doing business in their states.Answer: BQuestion Status: Previous Edition5> Which of the following statements about the licensing of insurance companies is <are> true?I. A new capital stock insurer must meet minimum capital and surplus requirements, which vary by state and line of insurance.II. The licensing requirements for insurance companies are less stringent than those imposed on most other types of firms.A> I onlyB> II onlyC> both I and IID> neither I nor IIAnswer: AQuestion Status: Previous Edition6> An insurance company incorporated in another state has been licensed to operate in your state.In your state, the insurer would be considered a<n>A> nonadmitted insurer.B> foreign insurer.C> alien insurer.D> reciprocal insurer.Answer: BQuestion Status: Previous Edition7> An insurance company chartered in another country has been licensed to operate in your state. In your state, the insurer would be considered a<n>A> nonadmitted insurer.B> foreign insurer.C> alien insurer.D> reciprocal insurer.Answer: CQuestion Status: Previous Edition8> Which of the following is considered a nonadmitted asset for an insurer?A> cashB> preferred stocksC> real estateD> office furnitureAnswer: DQuestion Status: Previous Edition9> The policyholders' surplus of an insurer is defined as the difference between itsA> assets and its liabilities.B> premium income and its expenses.C> reserves and its liabilities.D> assets and its nonadmitted assets.Answer: AQuestion Status: Previous Edition10> Which of the following statements about the use of risk-based capital requirements is <are> true?I. Insurers must have a certain amount of capital depending on the riskiness of their investments and insurance operations.II. Insurers may be required to take certain actions depending on how much capital they have relative to their risk-based capital requirements.A> I onlyB> II onlyC> both I and IID> neither I nor IIAnswer: CQuestion Status: Previous Edition11> Which of the following statements about the regulation of insurance company investments is <are> true?I. The purpose of regulating insurance company investments is to prevent insurers from making unsound investments which could threaten their solvency.II. Life insurers can invest an unlimited amount of their assets in common stocks.A> I onlyB> II onlyC> both I and IID> neither I nor IIAnswer: AQuestion Status: Previous Edition12> Which of the following statements about the regulation of life insurance companies is <are> true?I. The percentage of assets a life insurance company may invest in a specific type of asset <e.g., stocks or bonds> is generally limited by law.II. The purpose of limiting the accumulation of surplus is to prevent an insurer from increasing its surplus at the expense of policyowner dividends.A> I onlyB> II onlyC> both I and IID> neither I nor IIAnswer: CQuestion Status: Previous Edition13> Which of the following statements about state insurance guaranty funds is <are> true?I. They limit the amount that policyowners can collect if an insurer becomes insolvent.II. They are usually funded by general revenues of the states.A> I onlyB> II onlyC> both I and IID> neither I nor IIAnswer: AQuestion Status: Previous Edition14> Under one type of rate regulation, insurers are not required to file their rates with the state insurance department. However, insurers may be required to furnish rate schedules and supporting data to state officials. A fundamental assumption underlying this type of rating law is that market forces will determine the price and availability of insurance, rather than discretionary acts of regulators. This type of rate regulation is calledA> a flex-rating law.B> a prior-approval law.C> a file-and-use law.D> no filing required.Answer: DQuestion Status: Revised15> Under what type of rate regulation are insurers required to obtain approval of rates before using them if the rate change exceeds a specified predetermined range?A> flex-rating lawB> prior-approval lawC> file-and-use lawD> use-and-file lawAnswer: AQuestion Status: Revised16> By misrepresenting the true facts, Gretchen was able to convince a client to drop a life insurance policy with another company and to purchase a policy from the company that Gretchen represents. Gretchen has engaged in an illegal sales practice calledA> bait and switch.B> rebating.C> retaliating.D> twisting.Answer: DQuestion Status: Previous Edition17> Which of the following statements about premium taxes is <are> true?I. They are levied by the federal government as a result of the McCarran-Ferguson Act.II. Their primary purpose is to provide funds for insurance regulation.A> I onlyB> II onlyC> both I and IID> neither I nor IIAnswer: DQuestion Status: Previous Edition18> Advantages cited by proponents of federal regulation of insurance include all of the following EXCEPTA> greater efficiency.B> greater opportunity for innovation.C> uniformity of laws.D> more competent regulators.Answer: BQuestion Status: Previous Edition19> Advantages cited by proponents of state regulation of insurance include all of the following EXCEPTA> uniformity of laws by the NAIC.B> greater opportunity for innovation.C> greater responsiveness to local needs.D> centralization of political power.Answer: DQuestion Status: Previous Edition20> Shortcomings of state regulation of insurance found by Congressional committees and the General Accounting Office include all of the following EXCEPTA> inadequate protection of consumers.B> inadequate market conduct examinations.C> inability to respond to unique local needs.D> regulator's over-responsiveness to the insurance industry.Answer: CQuestion Status: Previous Edition21> The major reasons for insurer insolvency include which of the following?I. Inadequate pricing and loss reserves.II. Rapid growth and inadequate surplus.A> I onlyB> II onlyC> both I and IID> neither I nor IIAnswer: CQuestion Status: Previous Edition22> The principal methods of ensuring insurer solvency include all of the following EXCEPTA> Security and Exchange Commission oversight of investments.B> risk-based capital standards.C> field examinations.D> review of required annual financial statements.Answer: AQuestion Status: Previous Edition23> Which of the following is an argument for repealing the McCarran-Ferguson Act?A> It would make it easier for small insurers to compete.B> It would encourage sharing of information.C> It would make it easier to develop common coverage forms.D> It would correct for defects in state regulation.Answer: DQuestion Status: Previous Edition24> The number of title insurance companies operating in State Z is relatively low. Recently, the largest of these companies <50 percent market share> acquired the second largest company <30 percent market share>. Immediately after the acquisition, the insurer raised premiums by 75 percent. This scenario demonstrates which of the following rationales for the regulation of insurance?A> maintain insurer solvencyB> compensate for inadequate consumer knowledgeC> ensure reasonable ratesD> make insurance availableAnswer: CQuestion Status: Previous Edition25> In which of the following did the Court decide that insurance was interstate commerce when conducted across state lines, and therefore was subject to federal regulation?A> Paul v. VirginiaB> South-Eastern Underwriters Association caseC> McCarran-Ferguson ActD> Financial Modernization ActAnswer: BQuestion Status: Previous Edition26> A life insurance company based in Canada was licensed to operate in Massachusetts. When operating in Massachusetts, the Canadian insurer would be considered a<n>A> domestic insurer.B> captive insurer.C> foreign insurer.D> alien insurer.Answer: DQuestion Status: Previous Edition27> XYZ Mutual Insurance Company has total assets of $10 million. The policyholders' surplus is $2 million. What are XYZ Mutual's total liabilities?A> $4.0 millionB> $8.0 millionC> $10.0 millionD> $12.0 millionAnswer: BQuestion Status: Previous Edition28> Mutual Property Insurance Company has a surplus of $2 million. According to a conservative rule of thumb, how much new net premiums can Mutual Property Insurance Company safely write?A> $2 millionB> $8 millionC> $10 millionD> $20 millionAnswer: AQuestion Status: Previous Edition29> Fly-By-Night Insurance Company had much larger losses than forecast. The company did not charge adequate premiums nor did the company purchase reinsurance. If Fly-By-Night becomes insolvent, which of the following will help pay the unpaid claims of the insurer?A> guaranty fundB> premium rebatesC> risk-based capitalD> admitted assetsAnswer: AQuestion Status: Previous Edition30> Grace is a life insurance agent. She is attempting to sell a large life insurance policy, but the prospective purchaser is having second thoughts. To persuade the prospective purchaser, Grace said, "I will earn a $1,000 commission if you buy this policy. I'll give you $500 of my commission if you buy the policy." In most states, what illegal sales practice will Grace be guilty of if she splits her commission with the purchaser?A> rebatingB> churningC> twistingD> backdatingAnswer: AQuestion Status: Previous Edition31> State X's premium tax rate is 2 percent. State Y's premium tax rate is 3 percent. State X insurers are required to pay the 3 percent rate on business written in State Y. State X requires insurers from State Y to pay a 3 percent premium tax on business written in State X, even though the premium tax rate is only 2 percent in State X. This practice is known as aA> tax tariff.B> guaranty fund assessment.C> risk-based capital requirement.D> retaliatory tax law.Answer: DQuestion Status: Previous Edition32> ABC Insurance Company would like to purchase a bank. For many years, ABC was not permitted under federal law to enter into banking operations. Which of the following legislative acts eliminated the prohibition that prevented banks, insurers, and investment firms from entering into one another's markets?A> The McCarran-Ferguson ActB> The Tax Reform ActC> The Consolidated Omnibus Budget Reconciliation ActD> The Financial Modernization Act <Gramm-Leach-Bliley Act>Answer: DQuestion Status: Previous Edition33> Under one type of rating law, insurers are free to change rates and to use modified rates immediately. However, the new rate must be filed with regulators within a specified period, such as 60 days after the modified rate is employed. This type of rating law is calledA> prior approval.B> file-and-use.C> use-and-file.D> flex rating.Answer: CQuestion Status: Previous Edition34> The regulation of insurers in areas that affect consumers, which include claims handling, underwriting, complaints, advertising, sales practices, and other trade practices is calledA> solvency surveillance.B> market conduct regulation.C> combined ratio analysis.D> market share regulation.Answer: BQuestion Status: Previous Edition35> The National Association of Insurance Commissioners <NAIC> administers an "early warning system" to help ensure insurance company solvency. This system uses data provided in the annual statement to identify companies that may pose a solvency risk. This early warning system is calledA> the risk-based capital requirements.B> an insurance guaranty fund.C> the Insurance Regulatory Information System <IRIS>D> the assessment method.Answer: CQuestion Status: Previous Edition36> Which of the following statements is <are> true regarding the quality of insurance regulation?I. The quality of insurance regulation is uniform from state to state.II. All evidence suggests federal regulation of insurance would improve the quality of regulation.A> I onlyB> II onlyC> both I and IID> neither I nor IIAnswer: DQuestion Status: Previous Edition37> Which of the following statements concerning the proposed optional federal charter for life insurers is <are> true?I. Large insurers operating in many states would more likely prefer a state charter while smaller, regional, insurers would more likely choose a federal charter.II. Proponents of the federal charter argue that it would speed the development and approval of new products.A> I onlyB> II onlyC> both I and IID> neither I nor IIAnswer: BQuestion Status: Previous Edition38> All of the following are methods helping to insure the solvency of insurers EXCEPTA> commercial lines deregulationB> risk-based capital standards.C> the NAIC's early warning system.D> the NAIC's FAST screening system.Answer: AQuestion Status: Previous Edition39> A score derived from an individual's credit history and other factors that is used by many auto and homeowners insurers for underwriting and rating purposes is called a<n>A> CLUE score.B> insurance score.C> expense ratio score.D> combined ratio score.Answer: BQuestion Status: Previous Edition40> All of the following are arguments in favor of using an applicant's credit record in personal lines underwriting EXCEPTA> Most consumers have good credit records and benefit when credit history is used as a rating factor.B> Use of credit data in underwriting or rating discriminates against certain groups.C> Underwriting and rating may be more consistent if applicants' credit histories are considered.D> There is high correlation between an applicant's credit record and future claims experience. Answer: BQuestion Status: Previous Edition41> All of the following statements about insurance regulation are true EXCEPTA> Insurance commissioners are appointed in some states and elected in some states.B> Insurers are subject to regulation by certain federal agencies and laws.C> The National Association of Insurance Commissioners <NAIC> can force states to adopt the model laws that it drafts.D> An insurance commissioner can revoke or suspend an insurer's license to do business in his or her state.Answer: CQuestion Status: Revised42> A systemic risk is a risk thatA> can be eliminated through diversification.B> can be the cause of the collapse of an entire system.C> can be insured privately.D> can be easily contained so that it does not spread.Answer: BQuestion Status: New43> In 2008, the U.S. federal government stepped-in to prevent the financial failure of the world's largest insurer, the American International Group <AIG>. AIG's near insolvency was caused byA> catastrophic hurricane and earthquake losses that were not reinsured.B> fraudulent accounting practices that had inflated earnings for many years.C> losses on derivative loan guarantees issued by the company.D> over-investment in U.S. equity markets and the sharp drop in U.S. equity values. Answer: CQuestion Status: New44> The near demise of American International Group <AIG> in 2008 was caused by AIG's issuance of a complex derivative. This derivative guaranteed mortgage-backed securities held by investors. As the real estate market collapsed, AIG was required to post billions of dollars of collateral that it did not have. What were the derivative loan guarantees issued by AIG called?A> real estate investment trustsB> collateralized mortgage obligationsC> catastrophe put optionsD> credit default swapsAnswer: DQuestion Status: New。
瑞达 Rejda 保险教材英文练习题
P r i n c i p l e s o f R i s k M a n a g e m e n t a n d I n s u r a n c e,11e(R e j d a) Chapter 1 Risk in Our Society1) Traditionally, risk has been defined asA) any situation in which the probability of loss is one.B) any situation in which the probability of loss is zero.C) uncertainty concerning the occurrence of loss.D) the probability of a loss occurring.Answer: CQuestion Status: Previous Edition2) Objective risk is defined asA) the probability of loss.B) the relative variation of actual loss from expected loss.C) uncertainty based on a person's mental condition or state of mind.D) the cause of loss.Answer: BQuestion Status: Previous Edition3) An insurance company estimates its objective risk for 10,000 exposures to be 10 percent. Assuming the probability of loss remains the same, what would happen to the objective risk if the number of exposures were to increase to 1 million?A) It would decrease to 1 percent.B) It would decrease to 5 percent.C) It would remain the same.D) It would increase to 20 percent.Answer: AQuestion Status: Previous Edition4) Uncertainty based on a person's mental condition or state of mind is known asA) objective risk.B) subjective risk.C) objective probability.D) subjective probability.Answer: BQuestion Status: Previous Edition5) The long-run relative frequency of an event based on the assumption of an infinite number of observations with no change in the underlying conditions is calledA) objective probability.B) objective risk.C) subjective probability.D) subjective risk.Answer: AQuestion Status: Previous Edition6) Which of the following statements about a priori probabilities is correct?A) They are subjective probabilities based on ambiguity in the way probability is perceived.B) They are subjective probabilities that may vary among individuals because of factors such as age, gender, education, and the use of alcohol.C) They are objective probabilities that can be determined by deductive reasoning.D) They are objective probabilities that can be determined by subjective reasoning. Answer: CQuestion Status: Previous Edition7) An individual's personal estimate of the chance of loss isA) an objective probability.B) an objective risk.C) a subjective probability.D) an a priori probability.Answer: CQuestion Status: Previous Edition8) A peril isA) a moral hazard.B) the cause of a loss.C) a condition which increases the chance of a loss.D) the probability that a loss will occur.Answer: BQuestion Status: Previous Edition9) An earthquake is an example of aA) moral hazard.B) peril.C) physical hazard.D) objective risk.Answer: BQuestion Status: Previous Edition10) Dense fog that increases the chance of an automobile accident is an example of aA) speculative risk.B) peril.C) physical hazard.D) moral hazard.Answer: CQuestion Status: Previous Edition11) Faking an accident to collect insurance proceeds is an example of aA) physical hazard.B) objective risk.C) moral hazard.D) attitudinal hazard.Answer: CQuestion Status: Revised12) Carelessness or indifference to a loss is an example ofA) physical hazard.B) objective probability.C) moral hazard.D) attitudinal hazard.Answer: DQuestion Status: Revised13) Some characteristics of the judicial system and regulatory environment increase the frequency and severity of loss. This hazard is calledA) moral hazard.B) physical hazard.C) attitudinal hazard.D) legal hazard.Answer: DQuestion Status: Revised14) Taylor Tobacco Company is concerned that the company may be held liable in a court of law and ordered to pay a large damage award. The characteristics of the judicial system that increase the frequency and severity of losses are known asA) moral hazard.B) particular risk.C) speculative risk.D) legal hazard.Answer: DQuestion Status: Previous Edition15) A phrase that encompasses all of the major risks faced by a business firm isA) financial risk.B) speculative risk.C) enterprise risk.D) pure risk.Answer: CQuestion Status: Previous EditionI. Enterprise risk does not include financial risk.II. Financial risk is easily addressed through the purchase of insurance.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: DQuestion Status: Previous Edition17) All of the following are considered financial risks EXCEPTA) the decline in the value of a bond portfolio because of rising interest rates.B) increased cost of production because of rising commodity prices.C) loss of money because of adverse movements in currency exchange rates.D) destruction of a production facility caused by an explosion.Answer: DQuestion Status: Previous Edition18) Katelyn was just named Risk Manager of ABC Company. She has decided to create a risk management program which considers all of the risks faced by ABC-pure, speculative, operational, and strategic-in a single risk management program. Such a program is called a(n)A) financial risk management program.B) enterprise risk management program.C) fundamental risk management program.D) consequential risk management program.Answer: BQuestion Status: Previous Edition19) A pure risk is defined as a situation in which there isA) only the possibility of loss or no loss.B) only the possibility of profit.C) a possibility of neither profit nor loss.D) a possibility of either profit or loss.Answer: AQuestion Status: Previous Edition20) The premature death of an individual is an example of aA) pure risk.B) speculative risk.C) fundamental risk.D) physical hazard.Answer: AQuestion Status: Previous EditionA) They are almost always insurable by private insurers.B) They are more easily predictable than pure risks.C) They may benefit society even though a loss occurs.D) They involve only a chance of loss.Answer: CQuestion Status: Revised22) An automobile that is a total loss as a result of a collision is an example of which of the following types of risk?I. Speculative riskII. Diversifiable riskA) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Revised23) All of the following are programs to insure fundamental risks EXCEPTA) federally subsidized flood insurance.B) auto physical damage insurance.C) Social Security.D) unemployment insurance.Answer: BQuestion Status: Previous Edition24) All of the following are examples of personal risks EXCEPTA) poor health.B) unemployment.C) premature death.D) flood.Answer: DQuestion Status: Previous Edition25) Which of the following is a reason why premature death may result in economic insecurity?I. Additional expenses associated with death may be incurred.II. The income of the deceased person's family may be inadequate to meet its basic needs.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition26) Which of the following are often consequences of long-term disability?I. Continuing medical expensesII. Loss or reduction of employee benefitsA) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition27) All of the following are examples of direct property losses EXCEPTA) the theft of a person's jewelry.B) the destruction of a firm's manufacturing plant by an earthquake.C) the cost of renting a substitute vehicle while a collision-damaged car is being repaired.D) the vandalism of a person's automobile.Answer: CQuestion Status: Previous Edition28) The extra expense incurred by a business to stay in operation following a fire is an example of a(n)A) fundamental risk.B) speculative risk.C) direct loss.D) indirect loss.Answer: DQuestion Status: Previous Edition29) Which of the following statements about liability risks is (are) true?I. Future income and assets can be attached to pay judgments if inadequate insurance is carried.II. There is an upper limit on the amount of loss.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition30) All of the following are burdens to society because of the presence of risk EXCEPTA) The size of an emergency fund must be increased.B) Individuals may profit from accepting a speculative risk.C) Society is deprived of certain goods and services.D) Mental fear and worry are present.Answer: BQuestion Status: Previous Edition31) Loss control includes which of the following?I. Loss reductionII. Loss preventionA) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition32) Following good health habits can be categorized asA) loss prevention.B) risk retention.C) noninsurance transfer.D) personal insurance.Answer: AQuestion Status: Revised33) From the insured's perspective, the use of deductibles in insurance contracts is an example ofA) risk transfer.B) loss control.C) risk avoidance.D) risk retention.Answer: DQuestion Status: Previous Edition34) The use of fire-resistive materials when constructing a building is an example ofA) risk transfer.B) loss control.C) risk avoidance.D) risk retention.Answer: BQuestion Status: Previous Edition35) All of the following statements about risk retention are true EXCEPTA) It may be used intentionally if commercial insurance is unavailable.B) It may be used passively because of ignorance.C) Its use is most appropriate for low-frequency, high-severity types of risks.D) Its use results in cost savings if losses are less than the cost of insurance. Answer: CQuestion Status: Previous Edition36) All of the following are methods of noninsurance transfer EXCEPTA) entering into a hold-harmless agreement.B) avoiding dangerous activities.C) hedging risk using futures contracts.D) incorporating a business.Answer: BQuestion Status: Previous Edition37) Curt borrowed money from a bank to purchase a fishing boat. He purchased property insurance on the boat. Curt had difficulty making loan payments because he did not catch many fish, and fish prices were low. Curt intentionally sunk the boat, collected from his insurer, and paid off the loan balance. This scenario illustrates the problem ofA) adverse selection.B) moral hazard.C) nondiversifiable risk.D) attitudinal hazard.Answer: BQuestion Status: Revised38) Jenna opened a successful restaurant. One night, after the restaurant had closed, a fire started when the electrical system malfunctioned. In addition to the physical damage to the restaurant, Jenna also lost profits that could have been earned while the restaurant was closed for repairs. The lost profits are an example ofA) direct loss.B) nondiversifiable risk.C) speculative risk.D) indirect loss.Answer: DQuestion Status: Revised39) Brad started a pest control business. To protect his personal assets against liability arising out of the business, Brad incorporated the business. Brad's use of the corporate form of organization to shield against personal liability claims illustratesA) fundamental risk.B) noninsurance transfer.C) risk retention.D) objective risk.Answer: BQuestion Status: Previous Edition40) ABC Insurance Company plans to sell homeowners insurance in five Western states. ABC expects that 8 homeowners out of every 100, on average, will report claims each year. The variation between the rate of loss that ABC expects to occur and the rate of loss that actually does occur is calledA) objective probability.B) subjective probability.C) objective risk.D) subjective risk.Answer: CQuestion Status: Previous Edition41) Williams Company installed smoke detectors, a sprinkler system, and fire extinguishers in its new manufacturing facility. These devices are all examples ofA) loss control.B) noninsurance transfer.C) risk avoidance.D) risk retention.Answer: AQuestion Status: Previous Edition42) Tyndal Products Company produces cereal. The company has entered into contracts to deliver 500,000 boxes of cereal during the next 18 months. The company is concerned that the prices of two ingredients, corn and wheat, may increase over the next 18 months. The company used grain futures contracts to hedge the price risk associated with these commodities. Tyndal's use of hedging illustrates which risk management technique?A) noninsurance transferB) risk avoidanceC) risk retentionD) risk assumptionAnswer: AQuestion Status: Previous Edition43) Cathy's car hit a patch of ice on the road. The car skidded off the road and hit a tree. The presence of ice on the road is best described as a(n)A) peril.B) subjective risk.C) physical hazard.D) indirect loss.Answer: CQuestion Status: Previous Edition44) Jim and Paula Franklin started a dry cleaning business. The business may be successful or it may fail. The type of risk that is present when either a profit or loss could occur is calledA) pure risk.B) subjective risk.C) nondiversifiable risk.D) speculative risk.Answer: DQuestion Status: Revised45) Ben is concerned that if he injures someone or damages someone's property he could be held legally responsible and required to pay damages. This type of risk is called aA) speculative risk.B) liability risk.C) nondiversifiable risk.D) property risk.Answer: BQuestion Status: Revised46) MLX Drug Company would like to market a new hypertension drug. While the Food and Drug Administration (FDA) was testing the drug, it discovered that the drug produced a harmful side effect. When MLX learned of the FDA's test result, MLX abandoned its plan to produce and distribute the drug. MLX's reaction illustratesA) risk avoidance.B) hedging.C) risk transfer.D) risk retention.Answer: AQuestion Status: Previous Edition47) ABC Health Insurance Company sells health insurance in one state. Recently, that state's legislature passed a law forbidding health insurers from considering an individual's health history when selecting applicants to insure. This change in law will increase the possibility of unprofitable results for ABC. This type of hazard is an example ofA) physical hazard.B) legal hazard.C) moral hazard.D) attitudinal hazard.Answer: BQuestion Status: Revised48) All of the following are characteristics of the liability risk that most people face EXCEPTA) a lien may be placed on your income and assets to satisfy a legal judgment.B) substantial legal expenses may be incurred defending the claim.C) there is no upper limit on the amount of the loss.D) owning liability insurance eliminates the possibility of being held legally liable. Answer: DQuestion Status: Previous Edition49) Which of the following statements about chance of loss and risk is (are) true?I. If the chance of loss is identical for two groups, the objective risk must be the same.II. Two individuals may perceive differently the risk inherent in a given activity.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition50) A risk that affects only individuals or small groups and not the entire economy is called aA) diversifiable risk.B) pure risk.C) speculative risk.D) nondiversifiable risk.Answer: AQuestion Status: New51) All of the following are commercial risks EXCEPTA) the loss of business income.B) the risk of insufficient retirement income.C) the risk of being sued.D) the risk of property damage.Answer: BQuestion Status: New。
瑞达 Rejda 保险教材英文练习题20
Principles of Risk Management and Insurance, 11e (Rejda)Chapter 20 Homeowners Insurance, Section I1) Which of the following statements is (are) true regarding renters insurance?I. Renters insurance is needed if you rent a house, but is not needed if you rent an apartment. II. The ISO renter's policy provides "all-risks" coverage on the insured's personal property.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: DQuestion Status: Previous Edition2) Which of the following statements about eligibility requirements for homeowners insurance is (are) true?I. A contract can be written on a twenty-unit apartment complex as long as the tenants are families.II. Separate forms are available for renters and condominium owners.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition3) All of the following statements about the Homeowners 6 (unit-owners form) policy are true EXCEPTA) It includes personal liability coverage.B) It covers personal property on an "all-risks" basis.C) It provides limited coverage for improvements and alterations.D) It provides limited coverage for loss assessments.Answer: BQuestion Status: Previous Edition4) Which homeowners policy is designed for the tenants of rented premises?A) Homeowners 2B) Homeowners 4C) Homeowners 6D) Homeowners 8Answer: BQuestion Status: Previous Edition5) Which of the following statements about the Homeowners 8 policy is (are) true?I. Losses to the dwelling are settled on a replacement cost basis if the dwelling is insured for its full market value.II. It is designed primarily for expensive, newer, dwellings.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: DQuestion Status: Previous Edition6) Which of the following statements about the Homeowners 3 policy is (are) true?I. Losses to the dwelling are always settled on an actual cash value basis.II. Coverage on personal property is limited to $5,000.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: DQuestion Status: Previous Edition7) The major difference between the Homeowners 2 policy and the Homeowners 3 policy is theA) insured perils for the dwelling.B) insured perils for personal property.C) type of liability coverage provided.D) amount of coverage for other structures.Answer: AQuestion Status: Previous Edition8) Persons insureds under Section I of the Homeowners 3 policy include which of the following?I. A spouse of the named insured if living in the same householdII. The named insured's children who are under age 24 and who are full-time college studentsA) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition9) Section I of the Homeowners 3 policy provides coverage for all of the following EXCEPTA) loss of use.B) personal property.C) other structures.D) medical payments.Answer: DQuestion Status: Previous Edition10) All of the following are covered under the dwelling coverage (Coverage A) of the Homeowners 3 policy EXCEPTA) any structure attached to the dwelling.B) the land on which the insured dwelling is located.C) materials and supplies intended for alteration or repair of the dwelling.D) materials and supplies intended for construction of a detached garage.Answer: BQuestion Status: Previous Edition11) Which of the following statements about the coverage for other structures (Coverage B) under the Homeowners 3 policy is true?A) The amount of insurance on other structures is equal to a percentage of the coverage on the dwelling.B) Structures attached to the dwelling by a fence or utility line are considered to be part of the dwelling rather than other structures.C) Coverage applies even if the other structure is used for business purposes.D) There is no coverage for a private garage if it is rented to a tenant of the dwelling. Answer: AQuestion Status: Previous Edition12) All of the following losses are subject to special limits of liability under the Homeowners 3 policy EXCEPT theA) theft of firearms.B) destruction by fire of property used for business purposes.C) storm damage to a boat at a marina.D) destruction of jewelry by fire.Answer: DQuestion Status: Previous Edition13) Which of the following statements about the personal property coverage (Coverage C) of the Homeowners 3 policy is (are) true?I. The coverage applies only in the United States and Canada.II. The full amount of coverage applies only if the property is permanently located at any residence of the insured.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: DQuestion Status: Previous Edition14) The Homeowners 3 policy limits the amount of coverage provided on certain personal property (e.g. coin collections and silverware). This personal property can be adequately insured byA) lowering the deductible which applies to personal property losses.B) storing the property away from the home at another location.C) adding a schedule to the policy listing the property with specific amounts of insurance.D) adding an appraisal clause to the policy.Answer: CQuestion Status: Previous Edition15) Which of the following property is covered under the personal property coverage (CoverageC) of the Homeowners 3 policy?A) a pet iguana owned by the named insured's spouseB) a bicycle owned by a foster child living with the named insuredC) music CDs located in the named insured's automobileD) a stamp collection insured under a separate policyAnswer: BQuestion Status: Previous Edition16) All of the following statements about the coverage for loss of use (Coverage D) under the Homeowners 3 policy are true EXCEPTA) If a covered loss makes the home unfit for living, the insurer pays additional living expenses the insured may incur as a result of the loss.B) The duration of payments for additional living expenses is limited to a maximum of 15 days.C) There is coverage for the fair rental value of any part of the premises rented to others.D) There is coverage if civil authorities prohibit the insured from using the premises because of a loss to a neighboring premises from an insured peril.Answer: BQuestion Status: Previous Edition17) Which of the following statements about the additional coverages under Section I of the Homeowners 3 policy is true?A) There is coverage for the reasonable cost incurred to protect property from further damage after a covered loss occurs.B) There is unlimited coverage for furnishings of the landlord in an apartment on the premises that is rented to others.C) Property removed from the premises because it is endangered by an insured peril is covered on a named-perils basis while it is outside the insured premises.D) Damage caused by the settling of the insured structure is covered as a collapse.Answer: AQuestion Status: Previous EditionEXCEPTA) the reasonable expenses of removing debris of covered property after an insured loss.B) fire department service charges for which the insured is liable by contract or agreement.C) damage to trees and shrubs caused by a windstorm.D) losses incurred from the unauthorized use of a stolen credit card.Answer: CQuestion Status: Previous Edition19) All of the following are covered perils under the personal property coverage (Coverage C) of an unendorsed Homeowners 3 policy EXCEPTA) earthquake.B) theft.C) windstorm.D) explosion.Answer: AQuestion Status: Previous Edition20) Which of the following losses to a dwelling would be covered under an unendorsed Homeowners 3 policy?A) smoke damage resulting from agricultural operations of a neighboring farmerB) damage to the structure caused by a flash floodC) damage to the structure caused by the weight of heavy snowD) damage to a floor caused by water backing up through a sewer pipeAnswer: CQuestion Status: Previous Edition21) Which of the following statements about covered perils under the personal property coverage (Coverage C) of the Homeowners 3 policy is true?A) Theft losses to boats and watercraft are covered only if they occur at the insured's residence.B) Damage from an explosion is covered only if the explosion is the result of fire or lightning.C) Property damage from vehicles is covered only if it is caused by the insured.D) Smoke damage is covered only if it arises from agricultural or industrial operations. Answer: AQuestion Status: Previous Edition22) Which of the following types of water damage is covered under an unendorsed Homeowners3 policy?A) damage from floodB) damage from water backing up through a drainC) damage from water below the surface of the ground that seeps into a basementD) damage from water that overflows from a malfunctioning washing machineAnswer: DQuestion Status: Previous EditionEXCEPTA) losses due to earthquake.B) losses due to the failure of the insured to use all reasonable means to save and preserve property after the time of a loss.C) losses resulting from a power failure caused by an insured peril at the residence premises.D) losses due to radiation from a nuclear power plant.Answer: CQuestion Status: Revised24) Which of the following is (are) included among the duties of an insured following a loss covered under the Homeowners 3 policy?I. To file a proof of loss within a specified time period after the insurer's request.II. To prepare an inventory of damaged personal property.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition25) Which of the following statements about the replacement cost provision of the Homeowners3 policy is true?A) It applies to personal property losses only.B) Except for small losses, the insured must repair or replace the damaged property in order to receive full replacement cost.C) The insured is required to carry an amount of insurance equal to 100 percent of the replacement value of the insured property.D) Loss settlements are equal to 50 percent of the value of the loss if the insured is carrying less than the required amount of insurance.Answer: BQuestion Status: Previous Edition26) David has a Homeowners 3 policy that provides $280,000 of insurance on his dwelling, which has a current replacement value of $400,000. Ignoring any deductible, how much will David collect if a kitchen with a replacement value of $24,000 but an actual cash value of $18,000 is destroyed in a fire?A) $18,000B) $20,000C) $21,000D) $24,000Answer: CQuestion Status: Previous Edition27) Which of the following statements about the appraisal clause in the Homeowners 3 policy is (are) true?I. It is used to determine a value for personal property when the policy is issued.II. It is used to help settle disputes over the amount of a loss after a loss has occurred.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition28) Under the Homeowners 3 policy, all of the following are options of the insurer for settling claims EXCEPTA) paying the claim in cash.B) replacing the property.C) repairing the property.D) paying the claim with insurance company stock.Answer: DQuestion Status: Previous Edition29) All of the following are duties of the mortgagee under the standard mortgage clause EXCEPTA) to reimburse the insurer for any loss payments.B) to notify the insurer of any change in ownership of the property of which the mortgagee is aware.C) to provide a proof of loss form if the insured fails to do so.D) to pay the premium if the insured fails to do so.Answer: AQuestion Status: Previous Edition30) All of the following statements about the cancellation of a Homeowners 3 policy are true EXCEPTA) The insurer may cancel a new policy for any reason if it has been in force for less than 60 days and is not a renewal policy.B) At least 100 days notice of cancellation must be given if an insurer cancels a policy for nonpayment of premium.C) A policy written for longer than 1 year can be cancelled for any reason on the anniversary date by giving the insured at least 30 days notice of cancellation.D) After a policy has been in force for at least 60 days, it can be cancelled by the insurer if the risk has increased substantially since the policy was issued.Answer: BQuestion Status: Previous Edition31) All of the following statements about conditions under a homeowners policy are true EXCEPTA) If an insurer broadens coverage without an additional premium during the policy period, the broadened coverage applies immediately to the present policy.B) A waiver or change in any policy provision must be approved in writing by the insurer to be valid.C) The insurer must give written consent for an assignment of the policy to be valid.D) If the named insured dies, coverage automatically ceases with respect to any property of the deceased.Answer: DQuestion Status: Previous Edition32) Cal is renting an apartment. Which homeowners policy is specially designed to insure renters?A) HO-2B) HO-3C) HO-4D) HO-6Answer: CQuestion Status: Previous Edition33) Shauna purchased a condominium unit. Which homeowners policy is specially designed for condominium unit owners?A) HO-2B) HO-3C) HO-4D) HO-6Answer: DQuestion Status: Previous Edition34) Michelle had four matching end tables in her home. A fire damaged the home, destroying two of the end tables. Michelle's home was covered by an unendorsed Homeowners 3 policy. Which of the following is true with regard to the settlement for the end tables in this case?A) Loss to a pair or set is excluded under the policy.B) The insurer will pay the difference in actual cash value of the property before and after the loss.C) The insurer will pay the replacement cost of the loss.D) If a partial loss to a pair or set occurs, the insurer is liable for replacement of the entire pair or set.Answer: BQuestion Status: Previous Edition35) Betty's personal property is insured for $100,000 under her Homeowners 3 policy. If she usually keeps some personal property at a mountain cabin that she owns, how much coverage for this property is available under her homeowners policy?A) $10,000B) $20,000C) $40,000D) $50,000Answer: AQuestion Status: Previous Edition36) Linda wants to purchase a homeowners policy, but she has some valuable personal property to which internal policy limits apply. Her agent said that she could obtain coverage under her homeowners policy by attaching a list of this valuable property with specific amounts of insurance. Such a listing is called a(n)A) binder.B) schedule.C) application.D) warranty.Answer: BQuestion Status: Previous Edition37) All of the following are additional coverages provided under Section I of the Homeowners 3 policy EXCEPTA) reasonable repairs.B) debris removal.C) personal liability.D) property removal.Answer: CQuestion Status: Previous Edition38) Darla purchased an unendorsed Homeowners 3 policy. While the policy was in force, a fire occurred that destroyed a living room set. The living room set cost $4,000 new, but was 25 percent depreciated when the loss occurred. Replacement furniture will cost $4,400. Assuming no deductible, how much will Darla receive from her insurer?A) $3,000B) $3,300C) $3,400D) $4,400Answer: BQuestion Status: Previous Edition39) A dwelling with a replacement cost of $150,000 was insured under a Homeowners 3 policy for $100,000 at the time the roof was destroyed by a windstorm. The actual cash value of the loss was $9,000, but it will cost $12,000 to replace the roof. Assuming no deductible, what will the insurer pay to settle this loss?A) $8,000B) $9,000C) $10,000D) $12,000Answer: CQuestion Status: Previous Edition40) Ellen believes the value of the loss to her home is $30,000. The insurer has offered $18,000 to settle the loss. If Ellen and the insurer cannot agree on the value of the loss, which homeowners policy provision specifies how this dispute will be settled?A) insurer's optionB) appraisal clauseC) loss payment clauseD) mortgage clauseAnswer: BQuestion Status: Previous Edition41) Ted purchased a home. To finance the purchase, he borrowed $140,000 from ABC Bank, pledging the home as collateral for the loan. Shortly after purchasing the home, Ted lost his job. He could not find another job and could not pay the mortgage each month. Ted set fire to the home. The claims adjuster suspected arson, and an investigation proved that Ted intentionally caused the loss. Under the mortgage clause of the Homeowners 3 policy, how will this loss be settled?A) The insurer has no liability because the loss was intentional.B) The insurer will pay Ted the actual cash value of the loss as intentional loss is not excluded.C) The insurer will pay ABC the value of its insurable interest and pay Ted the value of his insurable interest.D) The insurer will pay ABC the value of its insurable interest and then attempt to recoup the loss payment from Ted.Answer: DQuestion Status: Revised42) Mike and Susan built their "dream home." They insured their home for its full replacement cost. They also added an endorsement that will pay up to an additional 20 percent of the policy limit in case the cost of rebuilding the home after a loss is greater than the policy limit. The basis under which Mike and Susan insured their home is calledA) actual cash value.B) valued policy coverage.C) extended replacement cost.D) guaranteed replacement cost.Answer: CQuestion Status: Previous Edition43) Jose and Maria would like "all-risks" coverage on their home and their personal property. Which unendorsed homeowners form provides this coverage?A) Homeowners 2B) Homeowners 3C) Homeowners 4D) Homeowners 5Answer: DQuestion Status: Previous Edition44) All of the following statements about covered perils and loss settlement under an unendorsed Homeowners 3 policy are true EXCEPTA) The dwelling is covered on an all-risk basis.B) Personal property losses are settled on a replacement cost basis.C) Losses to the dwelling may be settled on an actual cash value basis.D) Personal property is covered on a named-perils basis.Answer: BQuestion Status: Previous Edition45) Which of the following statements is (are) true regarding how the Homeowners 3 policy handles the peril of collapse?I. Collapse is specifically excluded, and there are no exceptions to the exclusion.II. Collapse that is caused by a Coverage C peril is covered.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition46) Following catastrophic hurricane losses, South Coast Insurance Company changed its deductible provision. Rather than using a specified dollar value, $250 for example; the dollar value of the deductible increases with the size of the loss. The type of deductible that South Coast changed to is called a(n)A) calendar-year deductible.B) corridor deductible.C) straight deductible.D) percentage deductible.Answer: DQuestion Status: Previous Edition47) If there is a conflict between state law and a provision in a homeowners policyA) the policy wording takes precedence.B) the state law takes precedence.C) the policyowner is entitled to whichever provides broader coverage.D) the policy is null and void.Answer: BQuestion Status: New48) A fire destroyed the home next door to Brad's home. The fire department chief was concerned that the damaged home would collapse on to Brad's home, so he ordered Brad to evacuate his home. Which of the following statements is true concerning the cost of Brad's hotel room while he is complying with the fire chief's order?A) The cost of the hotel room is not covered as Brad's home was not directly damaged.B) The cost of the hotel room is covered under the "fair rental value" coverage of Part D.C) The cost of the hotel room is covered under the "prohibited use" coverage of Part D.D) The cost of the hotel room is covered under the dwelling coverage of Part A. Answer: CQuestion Status: New。
瑞达 Rejda 保险教材英文练习题20
Principles of Risk Management and Insurance, 11e (Rejda)Chapter 20 Homeowners Insurance, Section I1) Which of the following statements is (are) true regarding renters insurance?I. Renters insurance is needed if you rent a house, but is not needed if you rent an apartment. II. The ISO renter's policy provides "all-risks" coverage on the insured's personal property.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: DQuestion Status: Previous Edition2) Which of the following statements about eligibility requirements for homeowners insurance is (are) true?I. A contract can be written on a twenty-unit apartment complex as long as the tenants are families.II. Separate forms are available for renters and condominium owners.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition3) All of the following statements about the Homeowners 6 (unit-owners form) policy are true EXCEPTA) It includes personal liability coverage.B) It covers personal property on an "all-risks" basis.C) It provides limited coverage for improvements and alterations.D) It provides limited coverage for loss assessments.Answer: BQuestion Status: Previous Edition4) Which homeowners policy is designed for the tenants of rented premises?A) Homeowners 2B) Homeowners 4C) Homeowners 6D) Homeowners 8Answer: BQuestion Status: Previous Edition5) Which of the following statements about the Homeowners 8 policy is (are) true?I. Losses to the dwelling are settled on a replacement cost basis if the dwelling is insured for its full market value.II. It is designed primarily for expensive, newer, dwellings.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: DQuestion Status: Previous Edition6) Which of the following statements about the Homeowners 3 policy is (are) true?I. Losses to the dwelling are always settled on an actual cash value basis.II. Coverage on personal property is limited to $5,000.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: DQuestion Status: Previous Edition7) The major difference between the Homeowners 2 policy and the Homeowners 3 policy is theA) insured perils for the dwelling.B) insured perils for personal property.C) type of liability coverage provided.D) amount of coverage for other structures.Answer: AQuestion Status: Previous Edition8) Persons insureds under Section I of the Homeowners 3 policy include which of the following?I. A spouse of the named insured if living in the same householdII. The named insured's children who are under age 24 and who are full-time college studentsA) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition9) Section I of the Homeowners 3 policy provides coverage for all of the following EXCEPTA) loss of use.B) personal property.C) other structures.D) medical payments.Answer: DQuestion Status: Previous Edition10) All of the following are covered under the dwelling coverage (Coverage A) of the Homeowners 3 policy EXCEPTA) any structure attached to the dwelling.B) the land on which the insured dwelling is located.C) materials and supplies intended for alteration or repair of the dwelling.D) materials and supplies intended for construction of a detached garage.Answer: BQuestion Status: Previous Edition11) Which of the following statements about the coverage for other structures (Coverage B) under the Homeowners 3 policy is true?A) The amount of insurance on other structures is equal to a percentage of the coverage on the dwelling.B) Structures attached to the dwelling by a fence or utility line are considered to be part of the dwelling rather than other structures.C) Coverage applies even if the other structure is used for business purposes.D) There is no coverage for a private garage if it is rented to a tenant of the dwelling. Answer: AQuestion Status: Previous Edition12) All of the following losses are subject to special limits of liability under the Homeowners 3 policy EXCEPT theA) theft of firearms.B) destruction by fire of property used for business purposes.C) storm damage to a boat at a marina.D) destruction of jewelry by fire.Answer: DQuestion Status: Previous Edition13) Which of the following statements about the personal property coverage (Coverage C) of the Homeowners 3 policy is (are) true?I. The coverage applies only in the United States and Canada.II. The full amount of coverage applies only if the property is permanently located at any residence of the insured.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: DQuestion Status: Previous Edition14) The Homeowners 3 policy limits the amount of coverage provided on certain personal property (e.g. coin collections and silverware). This personal property can be adequately insured byA) lowering the deductible which applies to personal property losses.B) storing the property away from the home at another location.C) adding a schedule to the policy listing the property with specific amounts of insurance.D) adding an appraisal clause to the policy.Answer: CQuestion Status: Previous Edition15) Which of the following property is covered under the personal property coverage (CoverageC) of the Homeowners 3 policy?A) a pet iguana owned by the named insured's spouseB) a bicycle owned by a foster child living with the named insuredC) music CDs located in the named insured's automobileD) a stamp collection insured under a separate policyAnswer: BQuestion Status: Previous Edition16) All of the following statements about the coverage for loss of use (Coverage D) under the Homeowners 3 policy are true EXCEPTA) If a covered loss makes the home unfit for living, the insurer pays additional living expenses the insured may incur as a result of the loss.B) The duration of payments for additional living expenses is limited to a maximum of 15 days.C) There is coverage for the fair rental value of any part of the premises rented to others.D) There is coverage if civil authorities prohibit the insured from using the premises because of a loss to a neighboring premises from an insured peril.Answer: BQuestion Status: Previous Edition17) Which of the following statements about the additional coverages under Section I of the Homeowners 3 policy is true?A) There is coverage for the reasonable cost incurred to protect property from further damage after a covered loss occurs.B) There is unlimited coverage for furnishings of the landlord in an apartment on the premises that is rented to others.C) Property removed from the premises because it is endangered by an insured peril is covered on a named-perils basis while it is outside the insured premises.D) Damage caused by the settling of the insured structure is covered as a collapse.Answer: AQuestion Status: Previous EditionEXCEPTA) the reasonable expenses of removing debris of covered property after an insured loss.B) fire department service charges for which the insured is liable by contract or agreement.C) damage to trees and shrubs caused by a windstorm.D) losses incurred from the unauthorized use of a stolen credit card.Answer: CQuestion Status: Previous Edition19) All of the following are covered perils under the personal property coverage (Coverage C) of an unendorsed Homeowners 3 policy EXCEPTA) earthquake.B) theft.C) windstorm.D) explosion.Answer: AQuestion Status: Previous Edition20) Which of the following losses to a dwelling would be covered under an unendorsed Homeowners 3 policy?A) smoke damage resulting from agricultural operations of a neighboring farmerB) damage to the structure caused by a flash floodC) damage to the structure caused by the weight of heavy snowD) damage to a floor caused by water backing up through a sewer pipeAnswer: CQuestion Status: Previous Edition21) Which of the following statements about covered perils under the personal property coverage (Coverage C) of the Homeowners 3 policy is true?A) Theft losses to boats and watercraft are covered only if they occur at the insured's residence.B) Damage from an explosion is covered only if the explosion is the result of fire or lightning.C) Property damage from vehicles is covered only if it is caused by the insured.D) Smoke damage is covered only if it arises from agricultural or industrial operations. Answer: AQuestion Status: Previous Edition22) Which of the following types of water damage is covered under an unendorsed Homeowners3 policy?A) damage from floodB) damage from water backing up through a drainC) damage from water below the surface of the ground that seeps into a basementD) damage from water that overflows from a malfunctioning washing machineAnswer: DQuestion Status: Previous EditionEXCEPTA) losses due to earthquake.B) losses due to the failure of the insured to use all reasonable means to save and preserve property after the time of a loss.C) losses resulting from a power failure caused by an insured peril at the residence premises.D) losses due to radiation from a nuclear power plant.Answer: CQuestion Status: Revised24) Which of the following is (are) included among the duties of an insured following a loss covered under the Homeowners 3 policy?I. To file a proof of loss within a specified time period after the insurer's request.II. To prepare an inventory of damaged personal property.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition25) Which of the following statements about the replacement cost provision of the Homeowners3 policy is true?A) It applies to personal property losses only.B) Except for small losses, the insured must repair or replace the damaged property in order to receive full replacement cost.C) The insured is required to carry an amount of insurance equal to 100 percent of the replacement value of the insured property.D) Loss settlements are equal to 50 percent of the value of the loss if the insured is carrying less than the required amount of insurance.Answer: BQuestion Status: Previous Edition26) David has a Homeowners 3 policy that provides $280,000 of insurance on his dwelling, which has a current replacement value of $400,000. Ignoring any deductible, how much will David collect if a kitchen with a replacement value of $24,000 but an actual cash value of $18,000 is destroyed in a fire?A) $18,000B) $20,000C) $21,000D) $24,000Answer: CQuestion Status: Previous Edition27) Which of the following statements about the appraisal clause in the Homeowners 3 policy is (are) true?I. It is used to determine a value for personal property when the policy is issued.II. It is used to help settle disputes over the amount of a loss after a loss has occurred.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition28) Under the Homeowners 3 policy, all of the following are options of the insurer for settling claims EXCEPTA) paying the claim in cash.B) replacing the property.C) repairing the property.D) paying the claim with insurance company stock.Answer: DQuestion Status: Previous Edition29) All of the following are duties of the mortgagee under the standard mortgage clause EXCEPTA) to reimburse the insurer for any loss payments.B) to notify the insurer of any change in ownership of the property of which the mortgagee is aware.C) to provide a proof of loss form if the insured fails to do so.D) to pay the premium if the insured fails to do so.Answer: AQuestion Status: Previous Edition30) All of the following statements about the cancellation of a Homeowners 3 policy are true EXCEPTA) The insurer may cancel a new policy for any reason if it has been in force for less than 60 days and is not a renewal policy.B) At least 100 days notice of cancellation must be given if an insurer cancels a policy for nonpayment of premium.C) A policy written for longer than 1 year can be cancelled for any reason on the anniversary date by giving the insured at least 30 days notice of cancellation.D) After a policy has been in force for at least 60 days, it can be cancelled by the insurer if the risk has increased substantially since the policy was issued.Answer: BQuestion Status: Previous Edition31) All of the following statements about conditions under a homeowners policy are true EXCEPTA) If an insurer broadens coverage without an additional premium during the policy period, the broadened coverage applies immediately to the present policy.B) A waiver or change in any policy provision must be approved in writing by the insurer to be valid.C) The insurer must give written consent for an assignment of the policy to be valid.D) If the named insured dies, coverage automatically ceases with respect to any property of the deceased.Answer: DQuestion Status: Previous Edition32) Cal is renting an apartment. Which homeowners policy is specially designed to insure renters?A) HO-2B) HO-3C) HO-4D) HO-6Answer: CQuestion Status: Previous Edition33) Shauna purchased a condominium unit. Which homeowners policy is specially designed for condominium unit owners?A) HO-2B) HO-3C) HO-4D) HO-6Answer: DQuestion Status: Previous Edition34) Michelle had four matching end tables in her home. A fire damaged the home, destroying two of the end tables. Michelle's home was covered by an unendorsed Homeowners 3 policy. Which of the following is true with regard to the settlement for the end tables in this case?A) Loss to a pair or set is excluded under the policy.B) The insurer will pay the difference in actual cash value of the property before and after the loss.C) The insurer will pay the replacement cost of the loss.D) If a partial loss to a pair or set occurs, the insurer is liable for replacement of the entire pair or set.Answer: BQuestion Status: Previous Edition35) Betty's personal property is insured for $100,000 under her Homeowners 3 policy. If she usually keeps some personal property at a mountain cabin that she owns, how much coverage for this property is available under her homeowners policy?A) $10,000B) $20,000C) $40,000D) $50,000Answer: AQuestion Status: Previous Edition36) Linda wants to purchase a homeowners policy, but she has some valuable personal property to which internal policy limits apply. Her agent said that she could obtain coverage under her homeowners policy by attaching a list of this valuable property with specific amounts of insurance. Such a listing is called a(n)A) binder.B) schedule.C) application.D) warranty.Answer: BQuestion Status: Previous Edition37) All of the following are additional coverages provided under Section I of the Homeowners 3 policy EXCEPTA) reasonable repairs.B) debris removal.C) personal liability.D) property removal.Answer: CQuestion Status: Previous Edition38) Darla purchased an unendorsed Homeowners 3 policy. While the policy was in force, a fire occurred that destroyed a living room set. The living room set cost $4,000 new, but was 25 percent depreciated when the loss occurred. Replacement furniture will cost $4,400. Assuming no deductible, how much will Darla receive from her insurer?A) $3,000B) $3,300C) $3,400D) $4,400Answer: BQuestion Status: Previous Edition39) A dwelling with a replacement cost of $150,000 was insured under a Homeowners 3 policy for $100,000 at the time the roof was destroyed by a windstorm. The actual cash value of the loss was $9,000, but it will cost $12,000 to replace the roof. Assuming no deductible, what will the insurer pay to settle this loss?A) $8,000B) $9,000C) $10,000D) $12,000Answer: CQuestion Status: Previous Edition40) Ellen believes the value of the loss to her home is $30,000. The insurer has offered $18,000 to settle the loss. If Ellen and the insurer cannot agree on the value of the loss, which homeowners policy provision specifies how this dispute will be settled?A) insurer's optionB) appraisal clauseC) loss payment clauseD) mortgage clauseAnswer: BQuestion Status: Previous Edition41) Ted purchased a home. To finance the purchase, he borrowed $140,000 from ABC Bank, pledging the home as collateral for the loan. Shortly after purchasing the home, Ted lost his job. He could not find another job and could not pay the mortgage each month. Ted set fire to the home. The claims adjuster suspected arson, and an investigation proved that Ted intentionally caused the loss. Under the mortgage clause of the Homeowners 3 policy, how will this loss be settled?A) The insurer has no liability because the loss was intentional.B) The insurer will pay Ted the actual cash value of the loss as intentional loss is not excluded.C) The insurer will pay ABC the value of its insurable interest and pay Ted the value of his insurable interest.D) The insurer will pay ABC the value of its insurable interest and then attempt to recoup the loss payment from Ted.Answer: DQuestion Status: Revised42) Mike and Susan built their "dream home." They insured their home for its full replacement cost. They also added an endorsement that will pay up to an additional 20 percent of the policy limit in case the cost of rebuilding the home after a loss is greater than the policy limit. The basis under which Mike and Susan insured their home is calledA) actual cash value.B) valued policy coverage.C) extended replacement cost.D) guaranteed replacement cost.Answer: CQuestion Status: Previous Edition43) Jose and Maria would like "all-risks" coverage on their home and their personal property. Which unendorsed homeowners form provides this coverage?A) Homeowners 2B) Homeowners 3C) Homeowners 4D) Homeowners 5Answer: DQuestion Status: Previous Edition44) All of the following statements about covered perils and loss settlement under an unendorsed Homeowners 3 policy are true EXCEPTA) The dwelling is covered on an all-risk basis.B) Personal property losses are settled on a replacement cost basis.C) Losses to the dwelling may be settled on an actual cash value basis.D) Personal property is covered on a named-perils basis.Answer: BQuestion Status: Previous Edition45) Which of the following statements is (are) true regarding how the Homeowners 3 policy handles the peril of collapse?I. Collapse is specifically excluded, and there are no exceptions to the exclusion.II. Collapse that is caused by a Coverage C peril is covered.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition46) Following catastrophic hurricane losses, South Coast Insurance Company changed its deductible provision. Rather than using a specified dollar value, $250 for example; the dollar value of the deductible increases with the size of the loss. The type of deductible that South Coast changed to is called a(n)A) calendar-year deductible.B) corridor deductible.C) straight deductible.D) percentage deductible.Answer: DQuestion Status: Previous Edition47) If there is a conflict between state law and a provision in a homeowners policyA) the policy wording takes precedence.B) the state law takes precedence.C) the policyowner is entitled to whichever provides broader coverage.D) the policy is null and void.Answer: BQuestion Status: New48) A fire destroyed the home next door to Brad's home. The fire department chief was concerned that the damaged home would collapse on to Brad's home, so he ordered Brad to evacuate his home. Which of the following statements is true concerning the cost of Brad's hotel room while he is complying with the fire chief's order?A) The cost of the hotel room is not covered as Brad's home was not directly damaged.B) The cost of the hotel room is covered under the "fair rental value" coverage of Part D.C) The cost of the hotel room is covered under the "prohibited use" coverage of Part D.D) The cost of the hotel room is covered under the dwelling coverage of Part A. Answer: CQuestion Status: New。
瑞达rejda保险教材英文练习题
Principles of Risk Management and Insurance, 11e (Rejda)Chapter 11 Life Insurance1) Which of the following types of families is likely to have the least need fora large amount of life insuranceA) a blended familyB) a traditional familyC) a single person familyD) a sandwiched familyAnswer: CQuestion Status: Previous Edition2) The human life value is defined as theA) present value of a deceased breadwinner's future gross income.B) future value of a deceased breadwinner's past earnings.C) present value of the family's share of a deceased breadwinner's future earnings.D) future value of the family's share of a deceased breadwinner's future earnings. Answer: CQuestion Status: Previous Edition3) All of the following information is needed to calculate a person's human life value EXCEPTA) the person's average annual earnings over his or her productive lifetime.B) the person's estimated annual Social Security benefits after retirement.C) the person's cost of self-maintenance.D) the number of years from the person's present age to the expected retirement age.Answer: BQuestion Status: Previous Edition4) To calculate a human life value, it is necessary to deduct certain costs froma person's average annual earnings. These costs includeA) funeral costs.B) income taxes.C) investment income.D) pension benefits after retirement.Answer: BQuestion Status: Previous Edition5) All of the following are defects which limit the usefulness of the human life value approach in determining the correct amount of life insurance to purchase EXCEPTB) Other sources of income for survivors are ignored.C) Earnings are assumed to remain constant.D) Earnings during the individual's productive lifetime are ignored. Answer: DQuestion Status: Previous Edition6) Which of the following statements about the needs approach for estimating the amount of life insurance to purchase is (are) trueI. It involves an analysis of various family needs which must be met if a family breadwinner dies.II. Its use is appropriate only if a person currently has no life insurance protection.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition7) The purpose of an estate clearance fund is to pay all of the following EXCEPTA) burial expenses.B) estate administration expenses.C) education costs.D) installment debts.Answer: CQuestion Status: Previous Edition8) What is the length of the readjustment period which is considered when the needs approach is used to determine the amount of life insurance to ownA) 3 to 6 monthsB) 1 to 2 yearsC) until the youngest child reaches age 18D) until the surviving spouse reaches age 65Answer: BQuestion Status: Previous Edition9) Under the needs approach, when is the dependency period of a surviving spouse assumed to endA) 1 or 2 years after the breadwinner's deathB) when the youngest child reaches age 18C) when the surviving spouse reaches age 65D) when the surviving spouse diesAnswer: BQuestion Status: Previous Edition10) The period during which a surviving spouse is ineligible for Social Security benefits is referred to as theA) emergency period.C) dependency period.D) blackout period.Answer: DQuestion Status: Previous Edition11) Which of the following statements about the capital retention approach for determining life insurance needs is (are) trueI. It assumes that life insurance proceeds will be liquidated to provide income to survivors.II. It requires the preparation of a personal balance sheet.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition12) When the capital retention approach is used to determine how much life insurance to purchase, all of the following are subtracted from total assets to calculate the capital available to produce income EXCEPTA) investments in stocks and bonds.B) non-income producing capital such as autos and the value of the home.C) the amount of money needed to payoff the mortgage.D) auto loans and credit card debt.Answer: AQuestion Status: Revised13) Disadvantages of the capital retention approach include which of the followingI. Assets are often liquidated too quickly.II. It underestimates the amount of life insurance needed.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: DQuestion Status: Previous Edition14) Tom and Nancy Boyle provide financial support for their two children. In addition, they provide financial support for Tom's aged father and Nancy's aged mother. The Boyle family can be described as aA) blended family.B) single-parent family.D) sandwiched family.Answer: DQuestion Status: Previous Edition15) Julian, age 45, would like to determine how much life insurance to purchase using the human life value approach. He assumes his average annual earnings over the next 20 years will be $40,000. Of this amount, $20,000 is available annually for the support of his family. Julian will generate this income for 20 more years and he believes that 5 percent is the appropriate interest (discount) rate. The present value of one dollar payable for 20 years at a discount rate of 5 percent is $. What is Julian's human life valueA) $184,600B) $249,200C) $360,800D) $400,000Answer: BQuestion Status: Previous Edition16) Jessica is an agent for LMN Life Insurance Company. She met with Brad, who was interested in purchasing life insurance. Jessica explained the various uses of life insurance, including income for Brad's wife during the 1- or 2-year period following Brad's death. This period is known as theA) dependency period.B) estate clearance period.C) blackout period.D) readjustment period.Answer: DQuestion Status: Previous Edition17) Sarah is using the needs approach to determine how much life insurance to buy. Her cash needs are $30,000; her income needs are $140,000; and special needs are $100,000. Sarah has the following assets: $20,000 in bank accounts, $30,000 in retirement plans, and $40,000 in investment accounts. Sarah owns no individual life insurance. She is covered by a $50,000 group life insurance policy through her employer. Based on this information, how much additional life insurance should Sarah purchaseA) $80,000B) $130,000C) $150,000D) $160,000Answer: BQuestion Status: Previous Edition18) Richard is using the capital retention approach to determine how much life insurance to purchase. Richard would like to provide $35,000 per year to his family, forever, if he dies. The assets that he has today will provide $25,000 in annual income without the liquidation of these assets. If life insurance proceeds can be invested to earn a 5 percent annual return, how much life insurance should Richard purchase to fund the additional income needed to meet the $35,000 annual income goalA) $10,000B) $100,000C) $150,000D) $200,000Answer: DQuestion Status: Previous Edition19) Bill is attempting to determine how much life insurance to purchase. He has two dependent children and his wife does not work outside of the home. An advisor suggested that Bill should consider Social Security benefits when doing his life insurance planning. One concern in this regard is the period after Social Security benefits to a widow terminate until they resume again. This period is called theA) blackout period.B) dependency period.C) emergency period.D) readjustment period.Answer: AQuestion Status: Previous Edition20) When using the needs approach, several "special needs" should be considered. One special need is money to cover unexpected events, such as major car repairs, dental bills, or home repairs. Money set aside for this purpose is called a(n)A) estate clearance fund.B) emergency fund.C) readjustment period fund.D) mortgage redemption fund.Answer: BQuestion Status: Previous Edition21) Most family heads need substantial amounts of life insurance. However, with limited income, money spent on life insurance reduces the amount of discretionary income available for other high-priority needs. What an insured person gives up when he or she purchases life insurance instead of using the premium dollars for other purposes is called theA) estimated cost of life insurance.C) real (inflation-adjusted) cost of life insurance.D) opportunity cost of buying life insurance. Answer: DQuestion Status: Previous Edition22) Which of the following statements about yearly renewable term insurance is (are) trueI. It requires evidence of insurability for renewal.II. It is most appropriate when an insured needs lifetime protection.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: DQuestion Status: Previous Edition23) What happens to the premiums for yearly renewable term insurance as an insured gets olderA) They increase at an increasing rate.B) They increase at a decreasing rate.C) They decrease at a constant rate.D) They remain level.Answer: AQuestion Status: Previous Edition24) All of the following statements about term insurance are true EXCEPTA) The insurance provides protection for a specified period of time.B) Most policies can be renewed for additional periods without evidence of insurability.C) Most policies can be converted to a permanent life insurance policy.D) Most policies have a cash value that is refunded when coverage ceases. Answer: DQuestion Status: Previous Edition25) All of the following statements about the conversion of a term policy are true EXCEPTA) Under an attained age conversion, the premium is based on the insured's attained age at the time of conversion.B) Under an original age conversion, the policyowner must pay a financial adjustment in addition to the premium for the new policy.C) Most insurers require original age conversion to take place within a specified period (5 years, for example) of the issue of the term policy.D) Evidence of insurability is required before a conversion is permitted. Answer: DQuestion Status: Previous Edition26) Which of the following statements about a decreasing term insurance policy isA) The face amount of the policy decreases during the policy period, and the premium increases.B) The face amount of the policy decreases during the policy period, but the premium remains level.C) The premium decreases during the policy period, but the face amount remains constant.D) Both the premium and the face amount of the policy decrease gradually over the policy period.Answer: BQuestion Status: Previous Edition27) The purchase of term insurance is justified by which of the following circumstancesI. The insured wants to save money through the policy for a specific need.II. The insured has a temporary need for life insurance protection.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition28) A legal reserve in life insurance is a result ofA) premium taxes payable by life insurance companies being postponed during the early policy years.B) dividends being paid to policyowners.C) inadequate premiums in the early policy years being subsidized by investment earnings.D) excess premiums in the early policy years being invested at compound interest. Answer: DQuestion Status: Previous Edition29) The net amount at risk for an ordinary life insurance policy is the difference between theA) present value of future benefits and the present value of future premiums.B) face amount of the policy and the total premiums that have been paid.C) face amount of the policy and the legal reserve.D) annual premium and the annual policyholder dividend.Answer: CQuestion Status: Previous Edition30) Which of the following statements about life insurance cash values is (are)I. Cash values are a result of the level premium method of purchasing life insurance. II. The cash value of a policy must always exceed the policy's legal reserve.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition31) All of the following statements about ordinary life insurance are true EXCEPTA) Premiums are level throughout the policy period.B) The face amount of the policy is paid if the insured lives to age 65.C) There is a build-up of cash value that can be borrowed by the policyholder.D) It offers the policyholder the flexibility to meet a wide variety of financial objectives.Answer: BQuestion Status: Previous Edition32) Which of the following statements about limited-payment life insurance is trueA) It is a form of term insurance.B) It matures at the end of the premium-payment period.C) The premium decreases each year during the premium-payment period.D) Its use may be appropriate if a person wants paid-up life insurance during retirement.Answer: DQuestion Status: Previous Edition33) Which of the following statements about endowment insurance policies is (are) trueI. The face amount is paid if the insured dies during the policy period or at the end of the policy period if the insured is still alive.II. The use of endowment insurance has increased in recent years because of its favorable tax treatment.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition34) All of the following statements about variable life insurance are true EXCEPTA) The premium is level and guaranteed not to increase.B) The death benefit varies according to investment experience.C) The policyowner has the option of investing the cash value in several investment accounts.D) Cash surrender values are guaranteed.Answer: DQuestion Status: Revised35) All of the following statements about universal life insurance are true EXCEPTA) Interest is credited to the policy's cash value each month.B) Any withdrawal of a policy's cash value reduces the amount of the death benefit.C) Interest credited to a policy's cash value is taxable for the policyowner in the year credited.D) The policyowner can add to a policy's cash value at any time subject to policy guidelines.Answer: CQuestion Status: Previous Edition36) Which of the following statements about universal life insurance is (are) trueI. The interest rate credited to the cash value at the time the policy is issuedremains fixed for the life of the policy.II. A monthly deduction is made from the policy's cash value for the cost of insurance protection.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition37) All of the following statements describe the flexibility available to the owner of a universal life insurance policy EXCEPTA) Policy loans are permitted on an interest-free basis.B) The frequency of premium payments can be varied.C) The death benefit can be increased with evidence of insurability.D) Premium payments can be any amount provided there is sufficient cash value to keep the policy in force.Answer: AQuestion Status: Previous Edition38) Which of the following statements about a variable universal life insurance policy is (are) trueI. There is a minimum guaranteed interest rate for the cash value.II. The policyowner has a variety of investment options for the investment of premiums.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition39) All of the following statements about current assumption whole life insurance are true EXCEPTA) It is a form of participating whole life insurance that pays annual dividends.B) An accumulation account is credited with an interest rate based on present market conditions and company experience.C) Under the low-premium version, the premium is subject to change after an initial guaranteed period.D) Under the high-premium version, the premium may vanish after a period of time. Answer: AQuestion Status: Revised40) Which of the following statements about an indeterminate-premium whole life insurance policy is (are) trueI. It permits the insurer to adjust premiums based on anticipated future experience.II. It allows policyholder dividends to be used to lower premiums.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition41) A whole life insurance policy in which premiums are reduced for an initial period . 3 years) and are higher thereafter is an example of aA) level-term policy.B) modified life policy.C) limited-payment whole life policy.D) variable life policy.Answer: BQuestion Status: Previous Edition42) Which of the following statements about policies sold to preferred risks is (are) trueI. Preferred risks are people whose mortality experience (deaths per thousand ata given age) is expected to be more favorable than average.II. Insurers require preferred risks to purchase at least a minimum amount of life insurance, such as $250,000.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Revised43) Which of the following statements about second-to-die life insurance is (are) trueI. The insurance is a form of endowment coverage.II. The premium is lower than the combined cost of purchasing a life insurance policy on each insured.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition44) Which of the following statements about savings bank life insurance is trueA) The maximum amount that a depositor can purchase is $50,000.B) The maximum amount of insurance that a depositor can purchase is limited to the amount of money on deposit in his or her savings account with the savings bank.C) The objective of savings bank life insurance is to provide protection to the bank in case a borrower dies before a loan is repaid.D) The objective of savings bank life insurance is to provide low-cost insurance to consumers by holding down expenses.Answer: DQuestion Status: Previous Edition45) Which of the following statements about industrial life insurance (also called home service life insurance) policies is trueA) Most policies have a face value exceeding $100,000.B) Most industrial life insurance policies are cash value coverage.C) Industrial life insurance is group term insurance coverage marketed to employers.D) This popular product accounts for over 40 percent of the life insurance sold today.Answer: BQuestion Status: Previous Edition46) Michael wants to make sure that life insurance proceeds are available to pay his outstanding mortgage balance if he dies. He purchased a type of life insurance in which the amount of coverage gradually declines, just as his outstanding mortgage balance gradually declines. This type of life insurance is calledA) modified life insurance.B) decreasing term insurance.C) re-entry term insurance.D) current assumption whole life.Answer: BQuestion Status: Previous Edition47) Carl would like to purchase life insurance. He would also like to invest ina mutual fund. An agent told Carl about a form of life insurance in which Carl could select where the saving component is invested. This form of life insurance has fixed premiums and the cash value is not guaranteed. This type of life insurance is calledA) universal life insurance.B) current assumption whole life.C) variable life insurance.D) indeterminate-premium whole life.Answer: CQuestion Status: Previous Edition48) Tamara purchased a term insurance policy when she had high life insurance needs and limited income. Now Tamara can afford whole life insurance. What term life insurance provision will permit Tamara to switch her term insurance to whole life insurance without having to show that she is still insurableA) renewal provisionB) tax-free exchange provisionC) conversion provisionD) free look provisionAnswer: CQuestion Status: Previous Edition49) Alex, age 26, purchased a 20-payment whole life insurance policy. After Alex has made 20 premium payments, his life insurance policy is consideredA) matured.B) reduced.C) expired.D) paid-up.Answer: DQuestion Status: Previous Edition50) Ann is considering the purchase of a life insurance policy with these characteristics: flexible premium payments, the insurance and savings components are separate, the interest rate credited to the savings is tied to a market interest rate but a minimum rate is guaranteed, and a monthly administrative fee is charged. Ann is considering buyingA) whole life insurance.B) variable life insurance.C) universal life insurance.D) current assumption whole life.Answer: CQuestion Status: Previous Edition51) Dave purchased a life insurance policy. The policy is nonparticipating and the cash values are based on the insurer's present mortality, investment, and expense experience. After 2 years, the insurer will recalculate the premium based on the mortality, investment, and expense experience at that time. Dave purchasedA) current assumption whole life.B) variable life insurance.C) universal life insurance.D) variable universal life insurance.Answer: AQuestion Status: Previous Edition52) Which of the following $100,000 whole life insurance policies, issued by the same company to a man age 32, would require the highest first-year premiumA) continuous premium (ordinary) lifeB) whole life paid-up at 65C) 10-payment whole lifeD) 20-payment whole lifeAnswer: CQuestion Status: Previous Edition53) Which of the following statements about variable universal life insurance is (are) trueI Variable universal life insurance has fixed premium payments.II. Variable universal life insurance allows the policyowner to decide where the premiums are invested.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition54) Which statement is true concerning the economic problem of premature death in the United StatesI. The economic impact of premature death of the breadwinner varies for different types of families.II. Increased life expectancy has increased the economic problem of premature death over time.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: New55) Which of the following statements is true regarding the results of studies by LIMRA and New York Life Insurance Company on the adequacy of life insurance owned by households in the United StatesI. The average household is adequately insured against the risk of premature death. II. The average household is significantly underinsured against the risk of premature death.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: New。
瑞达Rejda保险教材英文练习题1
Principles of Risk Management and Insurance, 11e (Rejda)Chapter 10 Analysis of Insurance Contracts1) The portion of a property and liability insurance contract that contains information about the property or activity to be insured is called theA) declarations.B) insuring agreement.C) exclusions.D) conditions.Answer: AQuestion Status: Previous Edition2) What information is contained in the insuring agreement of an insurance policy?A) a description of the property or life to be insuredB) a summary of the major promises of the insurerC) a summary of the obligations of the insuredD) a list of the property, losses, and perils that are not coveredAnswer: BQuestion Status: Previous Edition3) Which of the following statements about "all-risks" coverage is (are) true?I. All losses are covered except those losses specifically excluded.II. The burden of proof is on the insured to prove that a loss is covered.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition4) The exclusion of flood in a homeowners policy is an example of anA) excluded activity.B) excluded condition.C) excluded property.D) excluded peril.Answer: DQuestion Status: Previous Edition5) Exclusions are used in insurance policies for all of the following reasons EXCEPTA) to reduce moral hazard.B) to waive policy conditions.C) to eliminate coverage for uninsurable perils.D) to eliminate coverage not needed by typical insureds. Answer: BQuestion Status: Previous Edition6) Reasons why a peril may be considered uninsurable and therefore excluded from insurance contracts include which of the following?I. The losses from the occurrence of the peril may be due to a predictable decline in value. II. The losses from the occurrence of the peril may be incalculable and catastrophic.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition7) The policy provision requiring the filing of proof of loss with the insurer is an example of a(n)A) declaration.B) condition.C) insuring agreement.D) miscellaneous provision.Answer: BQuestion Status: Previous Edition8) Which of the following statements about the definition of the insured is (are) true?I. In some cases, a person who is not specifically named may be classified as an insured. II. Under no circumstances can more than one person be named as an insured.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition9) All of the following statements about endorsements and riders are true EXCEPTA) They are usually written.B) They can be used to add or delete policy provisions.C) They normally take precedence over other conflicting policy provisions.D) They are primarily used to circumvent legislation requiring specific policy provisions. Answer: DQuestion Status: Previous Edition10) Deductibles are used in all of the following types of insurance EXCEPTA) life insurance.B) health insurance.C) property insurance.D) automobile insurance. Answer: AQuestion Status: Previous Edition11) All of the following are purposes of deductibles EXCEPTA) to eliminate small claims.B) to reduce premiums.C) to reduce attitudinal hazard.D) to exclude uninsurable perils.Answer: DQuestion Status: Revised12) The deductible used for automobile collision losses is an example of a(n)A) corridor deductible.B) elimination period.C) straight deductible.D) aggregate deductible.Answer: CQuestion Status: Previous Edition13) Which of the following statements about a calendar-year deductible is (are) true?I. It requires the insured to pay a specified amount of each claim regardless of when the claim occurs during the year and regardless of any previous claims during the year.II. It is used only in policies which cover direct property losses.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: DQuestion Status: Previous Edition14) A provision in a disability income insurance policy that requires a person to be disabled for 60 days before receiving benefits is an example of a(n)A) corridor deductible.B) grace period.C) elimination period.D) probationary period.Answer: CQuestion Status: Revised15) At what point in time must an insured meet the coinsurance requirement in a property insurance policy in order to avoid having to pay a portion of the loss?A) only at the time of lossB) only at the time when the policy is issuedC) only at the time of policy applicationD) both at the time when the policy is issued and at the time of loss Answer: AQuestion Status: Revised16) David owns a commercial building with a replacement cost of $4 million. The building is insured on a replacement cost basis for $3 million under a fire insurance policy that has an 80 percent coinsurance clause. How much will David collect if the building sustains a covered fire loss with a replacement cost of $320,000?A) $266,667B) $275,000C) $300,000D) $320,000Answer: CQuestion Status: Previous Edition17) The primary purpose of coinsurance in property insurance is toA) reduce moral hazard.B) achieve equity in rating.C) minimize problems in settling claims.D) eliminate small losses.Answer: BQuestion Status: Previous Edition18) Which of the following statements about problems arising from the use of a coinsurance clause is (are) true?I. The amount of insurance should be periodically evaluated to avoid a coinsurance penalty because of inflation.II. An agreed value coverage option is one method used to solve the problem of values that fluctuate throughout the policy term.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition19) Connie has a major medical policy with a $200 deductible and a 75-25 coinsurance clause. If she has eligible medical expenses of $10,000, how much will be paid by her insurer?A) $7,300B) $7,350C) $7,500D) $9,800Answer: BQuestion Status: Previous Edition20) Purposes of the coinsurance clause in health insurance contracts include which of the following?I. To reduce premiums.II. To exclude coverage for certain medical procedures.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition21) The purpose of other-insurance provisions is toA) eliminate the need for deductibles.B) penalize those insureds who carry inadequate amounts of insurance.C) specify who will pay losses if the insurer is bankrupt.D) preserve the principle of indemnity.Answer: DQuestion Status: Previous Edition22) Lisa has three fire insurance policies on her office building. The policy from company A is for $400,000, and the policies from companies B and C are for $100,000 each. If Lisa has a $360,000 loss, how much of the loss will be covered by each policy if the loss is settled on a pro rata basis by the insurers?A) each policy: $120,000B) policy A: $160,000; policies B and C: $100,000 eachC) policy A: $240,000; policies B and C: $60,000 eachD) policy A: $360,000; policies B and C: nothingAnswer: CQuestion Status: Previous Edition23) Kevin has three liability policies which provide for contribution by equal shares if other insurance applies to a loss. How much will each policy pay for a $3,000,000 liability judgment if policy A provides $500,000 of coverage, policy B provides $1,000,000 of coverage, and policy C provides $3,000,000 of coverage?A) Each policy will pay $500,000, and Kevin must pay the remaining $1,500,000.B) Policy A will pay $500,000, policies B and C will each pay $1,000,000, and Kevin must pay the remaining $500,000.C) Policy A will pay nothing, policy B will pay $1,000,000, and policy C will pay $2,000,000.D) Policy A will pay $500,000, policy B will pay $1,000,000, and policy C will pay $1,500,000.Answer: DQuestion Status: Previous Edition24) Helen and John both own automobiles on which they carry liability insurance. If Helen is negligent and has an accident while driving John's car, how will each insurer respond to any liability judgment against Helen?A) The insurers will pay the judgment on a pro rata basis.B) John's insurer will pay on an excess basis if Helen's insurance is insufficient to cover the judgment.C) Helen's insurance will pay on an excess basis if John's insurance is insufficient to cover the judgment.D) The policies will pay the judgment on the basis of contribution by equal shares. Answer: CQuestion Status: Previous Edition25) Kate is covered under her employer's group health plan. She is also covered as a dependent under her husband's group health plan. Under the usualcoordination-of-benefits provision, how will each company respond to a claim filed by Kate?A) Kate's plan is primary, and her husband's plan is excess.B) Her husband's plan is primary, and Kate's plan is excess.C) The plan of the person with the birthday earliest in the year pays first, and the other plan is excess.D) Each plan will pay 50 percent of the claim.Answer: AQuestion Status: Previous Edition26) Eric's property was damaged in an accident. He phoned his agent to see if the loss was covered under his property insurance policy. The agent said, "As long as the cause of loss is not specifically excluded in the policy, the loss is covered." Based on the agent's answer, what type of insuring agreement appears in the policy?A) unconditional coverageB) named-perils coverageC) extended-perils coverageD) "all-risks" coverageAnswer: DQuestion Status: Previous Edition27) Janet hit a wall causing a large dent in the fender of her car. She was busy at work and delayed reporting the damage to her insurer for 9 months. The insurer denied the claim, stating, "Although such a loss is usually covered, you are required under the terms of the contract to provide prompt notification in case of loss." The prompt notificationrequirement is an example of a(n)A) declaration.B) definition.C) insuring agreement.D) condition.Answer: DQuestion Status: Previous Edition28) Mark reviewed his homeowners policy. He learned that his personal property was insured on an actual cash value basis. He would like replacement cost coverage on the property. He contacted his agent who said, "I'll simply add an amendment to your contract that changes the basis of recovery to replacement cost." The written provision the agent was referring to is called a(n)A) endorsement.B) coinsurance clause.C) binder.D) deductible.Answer: AQuestion Status: Previous Edition29) Under the terms of Jenny's auto insurance policy, she must pay the first $500 of any physical damage loss to her vehicle before her insurer will pay anything. What type of deductible is included in Jenny's auto insurance policy?A) calendar-year deductibleB) corridor deductibleC) straight deductibleD) aggregate deductibleAnswer: CQuestion Status: Previous Edition30) Shauna hurt her back and was unable to work. She filed a claim under her disability income insurance policy. Under terms of the policy, 60 days must pass between the date of the injury and when the insurer begins to replace lost earnings. This 60-day period is called a(n)A) grace period.B) enrollment period.C) probationary period.D) elimination (waiting) period.Answer: DQuestion Status: Previous Edition31) ABC Company insured its building on a replacement cost basis for $700,000 under a property insurance policy that included an 80 percent coinsurance clause. The building had a replacement cost of $1 million when it sustained a $40,000 loss. How much will ABC Company receive from its insurer, assuming no deductible applies?A) $33,333B) $35,000C) $36,000D) $40,000Answer: BQuestion Status: Previous Edition32) XYZ Company insured its building on a replacement cost basis for $450,000 under a property insurance policy that included an 80 percent coinsurance clause. The building had a replacement cost of $500,000 when it sustained a $50,000 loss. How much will XYZ Company receive from its insurer, assuming no deductible applies?A) $42,500B) $45,000C) $50,000D) $56,250Answer: CQuestion Status: Previous Edition33) Laura's major medical insurance policy includes a $500 deductible and an 80-20 coinsurance clause. Laura was hospitalized and her covered medical expenses were $10,500. How much of the $10,500 will be paid by the insurer under Laura's major medical policy?A) $7,500B) $7,900C) $8,000D) $10,000Answer: CQuestion Status: Previous Edition34) James purchased liability insurance with a $100,000 limit from Insurer A. When InsurerA denied a claim that James thought should be covered, he bought a second liability insurance policy with a $150,000 limit from Insurer B. Before he cancelled the policy with Insurer A, a $60,000 loss occurred. If this loss is settled on a pro rata basis, how much must each insurer pay?A) Insurer A will pay $10,000 and Insurer B will pay $50,000.B) Insurer A will pay $20,000 and Insurer B will pay $40,000.C) Insurer A will pay $24,000 and Insurer B will pay $36,000.D) Insurer A will pay $40,000 and Insurer B will pay $20,000.Answer: CQuestion Status: Previous Edition35) Jane purchased a $50,000 liability insurance policy from Insurer A. Fearing that she did not have enough liability insurance, she purchased an additional $100,000 of liability coverage from Insurer B. As a result of her negligence, Jane was ordered to pay $75,000 in damages. Assuming the coverage from Insurer A is primary and the coverage from Insurer B is excess, how will this claim be settled?A) Insurer A will pay $50,000 and Insurer B will pay $25,000.B) Insurer A will pay $37,500 and Insurer B will pay $37,500.C) Insurer A will pay $25,000 and Insurer B will pay $50,000.D) Insurer A will pay nothing and Insurer B will pay $75,000. Answer: AQuestion Status: Previous Edition36) One method of providing group health insurance is a basic medical expense plan supplemented with major medical insurance. The insured is required to pay a deductible between where the basic coverage ends and where the major medical coverage begins. This deductible is called a(n)A) corridor deductible.B) waiting period.C) aggregate deductible.D) straight deductible.Answer: AQuestion Status: Previous Edition37) The purpose of a coordination-of-benefits provision in group health insurance plans is toA) determine which plan pays first if more than one plan covers a loss.B) determine which health care provider an insured may use for his or her care.C) determine if the calendar-year deductible has been satisfied by the insured.D) determine if the employee is eligible for coverage under the group health plan. Answer: AQuestion Status: Previous Edition38) As an alternative to coinsurance, rate discounts can be given as the amount of insurance to value increases. This alternative is calledA) graded rates.B) agreed value coverage.C) retrospective rating.D) manual rating.Answer: AQuestion Status: New39) Mark owns a building that he insured for $90,000. The replacement cost of the building is $100,000. Mark's property insurance policy has an 80 percent coinsurance clause and no deductible. If Mark's building is destroyed by a covered peril, how much will Mark receive from his insurer?A) $80,000B) $90,000C) $101,250D) $112,500Answer: BQuestion Status: New。
瑞达 Rejda 保险教材英文练习题02
P r i n c i p l e s o f R i s k M a n a g e m e n t a n d I n s u r a n c e,11e(R e j d a)Chapter2InsuranceandRisk1)AllofthefollowingarecharacteristicsofinsuranceEXCEPTA)riskavoidance.B)poolingoflosses.C)paymentoffortuitouslosses.D)indemnification.s?A)Theamounttheinsurerexpectstopayinclaimsshoulddecrease.B)Underwritingexpensesshoulddecrease.C)Actualresultswillmorecloselyapproachexpectedresults.D)Theinsurer'sprofitabilityshouldbecomemorevariable.Answer:CQuestionStatus:PreviousEdition5)Characteristicsofafortuitouslossincludewhichofthefollowing?I. Thelossiscertaintooccur.II. Thelossoccursasaresultofchance.A)IonlyB)IIonlyC)bothIandIID)neitherInorIIAnswer:BQuestionStatus:PreviousEditionC)Itminimizesmoralhazard.D)Itenablestheinsurertopredictlossesmoreaccurately.Answer:DQuestionStatus:PreviousEdition9)Therequirementthatlossesshouldbeaccidentalandunintentionalinordertobeinsurableres ultsinwhichofthefollowing?I. DecreaseinmoralhazardII. MoreaccuratepredictionoffuturelossesA)IonlyB)IIonlyC)bothIandIID)neitherInorIIAnswer:CQuestionStatus:PreviousEdition10)Whichofthefollowingisimpliedbytherequirementthatalossshouldbedeterminableandm easurabletobeinsurable?I.I.12)Whichofthefollowingtypesofrisksbestmeetstherequirementsforbeinginsurablebyprivat einsurers?A)marketrisksB)propertyrisksC)financialrisksD)politicalrisksAnswer:BQuestionStatus:PreviousEdition13)Reasonswhymarket,financial,andproductionrisksareoftenuninsurableincludewhichofth efollowing?I. Thepotentialtoproduceacatastrophiclossisgreat.II. Thechanceoflosscannotbeaccuratelyestimated.A)IonlyB)IIonlyC)bothIandIID)neitherInorIIpleofA)moralhazard.B)fundamentalrisk.C)attitudinalhazard.D)adverseselection.Answer:DQuestionStatus:Revised17)Whichofthefollowingstatementsregardinginsuranceandgamblingis(are)true?I. Insuranceisusedtohandleexistingpurerisks,whilegamblingcreatesanewspeculativerisk.II.Insuranceusuallyinvolvesriskavoidance,whilegamblingtypicallyinvolvesonlyriskreductio n.A)IonlyB)IIonlyC)bothIandIID)neitherInorIIAnswer:Ats?I.A)lifeinsurance.B)generalliabilityinsurance.C)workerscompensationinsurance.D)burglaryandtheftinsurance.Answer:AQuestionStatus:PreviousEdition21)Whichofthefollowingisaformofcasualtyinsurance?A)fireinsuranceB)generalliabilityinsuranceC)inlandmarineinsuranceD)oceanmarineinsuranceAnswer:BQuestionStatus:PreviousEdition22)Theterm"multiple-lineinsurance"isusedtodescribeatypeofinsurancethatcombineswhic hofthefollowingcoveragesintoasinglecontract?I.C)bothIandIID)neitherInorIIAnswer:CQuestionStatus:PreviousEdition25)AllofthefollowingaresocialcostsassociatedwithinsuranceEXCEPTA)insurancecompanyoperatingexpenses.B)fraudulentclaims.C)inflatedclaims.D)increasedcostofcapital. Answer:D QuestionStatus:PreviousEdition26)Agroupoffarmersagreedthatifanyfarmersufferedapropertyloss,thelosswouldbespread overtheentiregroup.Inthisway,eachfarmerisresponsiblefortheaveragelossofthegrouprathe rthantheactuallossthatthefarmersustained.Whichcharacteristicofinsuranceisembodiedint hisagreement?A)poolingoflossesB)fortuitouslossesC)riskavoidanceD)indemnificationA)excessivepremiumsB)reducedclaimsC)badinvestmentsD)adverseselectionAnswer:DQuestionStatus:PreviousEdition29)AlphaInsuranceCompanyinsuresabroadrangeofrisks,includingwhateverisnotcoveredbyfire,marine,andlifeinsurers.WhichtermbestdescribesthewiderangeofriskswrittenbyAlphaIn surance?A)fidelityinsuranceB)casualtyinsuranceC)socialinsuranceD)propertyinsuranceAnswer:BQuestionStatus:PreviousEdition30)LMNInsurancemarketshomeownersinsurance.TheLMNhomeownerspolicycombinespr opertyandcasualtyinsuranceinthesamecontract.Insurancepoliciescombiningpropertyandc asualtycoverageinthesamecontractarecalledA)mono-linepolicies.B)multi-yearpolicies.C)multiple-linepolicies.D)manuscriptpolicies.Answer:CD)incentivesforlosspreventionAnswer:AQuestionStatus:PreviousEdition33)ABCInsuranceCompanycalculatedtheamountthatitexpectedtopayinclaimsundereachp olicysold.Ratherthansellingtheinsurancefortheamountitexpectedtopayinclaims,ABCadded anallowancetocoverthecostofdoingbusiness,includingcommissions,taxes,andacquisitione xpenses.Thisallowanceiscalleda(n)A)policyownerdividend.B)premium.C)expenseloading.D)ratecredit.Answer:C QuestionStatus:PreviousEdition34)JKLInsuranceCompanyestimatesthat14outofevery100homeownersitinsureswillfileaclai styear,JKLinsured200homeowners.Accordingtothelawoflargenumbers,what shouldhappenifJKLinsures2,000homeownersthisyear?A)ThetotalnumberofclaimsfiledbyJKLpolicyownersshoulddecrease.B)Thetotaldollarvalueofclaimswilldecrease.C)Theaveragesizeoflosswilldeclineinvalue.D)Theactualresultswillmorecloselyapproachtheexpectedresults.Answer:DAnswer:DQuestionStatus:New37)Whichofthefollowingstatementsregardinginsuranceandhedgingis(are)true?I. Insuranceinvolvesthetransferofinsurableriskwhilehedginghandlesriskthatistypicallyunin surable.II. Bothinsuranceandhedgingrelyonthelawoflargenumberstoreducerisk.A)IonlyB)IIonlyC)bothIandIID)neitherInorIIAnswer:A QuestionStatus:PreviousEdition38)Ashleyopenedanall-you-can-eatbuffetrestaurant.Thecostper-personwasbaseduponwh atAshleybelievedanaveragerestaurantpatronwouldconsume.Therestaurantbegantolosem oney.Ashleyconcludedthatherpatronshad"aboveaverage"appetites,andwereattractedtoh errestaurantbecausetheycouldeatasmuchastheywantedwhilebeingchargedanaveragepric e.Asimilarphenomenonexistsininsurancemarkets.ThisproblemiscalledA)moralhazard.B)adverseselection.C)attitudinalhazard.I.。
瑞达 Rejda 保险教材英文练习题10
Principles of Risk Management and Insurance, 11e (Rejda)Chapter 10 Analysis of Insurance Contracts1) The portion of a property and liability insurance contract that contains information about the property or activity to be insured is called theA) declarations.B) insuring agreement.C) exclusions.D) conditions.Answer: AQuestion Status: Previous Edition2) What information is contained in the insuring agreement of an insurance policyA) a description of the property or life to be insuredB) a summary of the major promises of the insurerC) a summary of the obligations of the insuredD) a list of the property, losses, and perils that are not coveredAnswer: BQuestion Status: Previous Edition3) Which of the following statements about "all-risks" coverage is (are) trueI. All losses are covered except those losses specifically excluded.II. The burden of proof is on the insured to prove that a loss is covered.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition4) The exclusion of flood in a homeowners policy is an example of anA) excluded activity.B) excluded condition.C) excluded property.D) excluded peril.Answer: DQuestion Status: Previous Edition5) Exclusions are used in insurance policies for all of the following reasons EXCEPTA) to reduce moral hazard.B) to waive policy conditions.C) to eliminate coverage for uninsurable perils.D) to eliminate coverage not needed by typical insureds.Answer: BQuestion Status: Previous Edition6) Reasons why a peril may be considered uninsurable and therefore excluded from insurance contracts include which of the followingI. The losses from the occurrence of the peril may be due to a predictable decline in value.II. The losses from the occurrence of the peril may be incalculable and catastrophic.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition7) The policy provision requiring the filing of proof of loss with the insurer is an example of a(n)A) declaration.B) condition.C) insuring agreement.D) miscellaneous provision.Answer: BQuestion Status: Previous Edition8) Which of the following statements about the definition of the insured is (are) trueI. In some cases, a person who is not specifically named may be classified as an insured.II. Under no circumstances can more than one person be named as an insured.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition9) All of the following statements about endorsements and riders are true EXCEPTA) They are usually written.B) They can be used to add or delete policy provisions.C) They normally take precedence over other conflicting policy provisions.D) They are primarily used to circumvent legislation requiring specific policy provisions.Answer: DQuestion Status: Previous Edition10) Deductibles are used in all of the following types of insurance EXCEPTA) life insurance.B) health insurance.C) property insurance.D) automobile insurance.Answer: AQuestion Status: Previous Edition11) All of the following are purposes of deductibles EXCEPTA) to eliminate small claims.B) to reduce premiums.C) to reduce attitudinal hazard.D) to exclude uninsurable perils.Answer: DQuestion Status: Revised12) The deductible used for automobile collision losses is an example of a(n)A) corridor deductible.B) elimination period.C) straight deductible.D) aggregate deductible.Answer: CQuestion Status: Previous Edition13) Which of the following statements about a calendar-year deductible is (are) trueI. It requires the insured to pay a specified amount of each claim regardless of when the claim occurs during the year and regardless of any previous claims during the year.II. It is used only in policies which cover direct property losses.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: DQuestion Status: Previous Edition14) A provision in a disability income insurance policy that requires a person to be disabled for 60 days before receiving benefits is an example of a(n)A) corridor deductible.B) grace period.C) elimination period.D) probationary period.Answer: CQuestion Status: Revised15) At what point in time must an insured meet the coinsurance requirement in a property insurance policy in order to avoid having to pay a portion of the lossA) only at the time of lossB) only at the time when the policy is issuedC) only at the time of policy applicationD) both at the time when the policy is issued and at the time of lossAnswer: AQuestion Status: Revised16) David owns a commercial building with a replacement cost of $4 million. The building is insured on a replacement cost basis for $3 million under a fire insurance policy that has an 80 percent coinsurance clause. How much will David collect if the building sustains a covered fire loss with a replacement cost of $320,000A) $266,667B) $275,000C) $300,000D) $320,000Answer: CQuestion Status: Previous Edition17) The primary purpose of coinsurance in property insurance is toA) reduce moral hazard.B) achieve equity in rating.C) minimize problems in settling claims.D) eliminate small losses.Answer: BQuestion Status: Previous Edition18) Which of the following statements about problems arising from the use of a coinsurance clause is (are) trueI. The amount of insurance should be periodically evaluated to avoid a coinsurance penalty because of inflation.II. An agreed value coverage option is one method used to solve the problem of values that fluctuate throughout the policy term.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition19) Connie has a major medical policy with a $200 deductible and a 75-25 coinsurance clause. If she has eligible medical expenses of $10,000, how much will be paid by her insurerA) $7,300B) $7,350C) $7,500D) $9,800Answer: BQuestion Status: Previous Edition20) Purposes of the coinsurance clause in health insurance contracts include which of the followingI. To reduce premiums.II. To exclude coverage for certain medical procedures.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition21) The purpose of other-insurance provisions is toA) eliminate the need for deductibles.B) penalize those insureds who carry inadequate amounts of insurance.C) specify who will pay losses if the insurer is bankrupt.D) preserve the principle of indemnity.Answer: DQuestion Status: Previous Edition22) Lisa has three fire insurance policies on her office building. The policy from company A is for $400,000, and the policies from companies B and C are for $100,000 each. If Lisa has a $360,000 loss, how much of the loss will be covered by each policy if the loss is settled on a pro rata basis by the insurersA) each policy: $120,000B) policy A: $160,000; policies B and C: $100,000 eachC) policy A: $240,000; policies B and C: $60,000 eachD) policy A: $360,000; policies B and C: nothingAnswer: CQuestion Status: Previous Edition23) Kevin has three liability policies which provide for contribution by equal shares if other insurance applies to a loss. How much will each policy pay for a $3,000,000 liability judgment if policy A provides $500,000 of coverage, policy B provides $1,000,000 of coverage, and policy C provides $3,000,000 of coverageA) Each policy will pay $500,000, and Kevin must pay the remaining $1,500,000.B) Policy A will pay $500,000, policies B and C will each pay $1,000,000, and Kevin must pay the remaining $500,000.C) Policy A will pay nothing, policy B will pay $1,000,000, and policy C will pay $2,000,000.D) Policy A will pay $500,000, policy B will pay $1,000,000, and policy C will pay $1,500,000.Answer: DQuestion Status: Previous Edition24) Helen and John both own automobiles on which they carry liability insurance. If Helen is negligent and has an accident while driving John's car, how will each insurer respond to any liability judgment against HelenA) The insurers will pay the judgment on a pro rata basis.B) John's insurer will pay on an excess basis if Helen's insurance is insufficient to cover the judgment.C) Helen's insurance will pay on an excess basis if John's insurance is insufficient to cover the judgment.D) The policies will pay the judgment on the basis of contribution by equal shares. Answer: CQuestion Status: Previous Edition25) Kate is covered under her employer's group health plan. She is also covered as a dependent under her husband's group health plan. Under the usual coordination-of-benefits provision, how will each company respond to a claim filed by KateA) Kate's plan is primary, and her husband's plan is excess.B) Her husband's plan is primary, and Kate's plan is excess.C) The plan of the person with the birthday earliest in the year pays first, and the other plan is excess.D) Each plan will pay 50 percent of the claim.Answer: AQuestion Status: Previous Edition26) Eric's property was damaged in an accident. He phoned his agent to see if the loss was covered under his property insurance policy. The agent said, "As long as the cause of loss is not specifically excluded in the policy, the loss is covered."Based on the agent's answer, what type of insuring agreement appears in the policyA) unconditional coverageB) named-perils coverageC) extended-perils coverageD) "all-risks" coverageAnswer: DQuestion Status: Previous Edition27) Janet hit a wall causing a large dent in the fender of her car. She was busy at work and delayed reporting the damage to her insurer for 9 months. The insurer denied the claim, stating, "Although such a loss is usually covered, you are required under the terms of the contract to provide prompt notification in case of loss." The prompt notification requirement is an example of a(n)A) declaration.B) definition.C) insuring agreement.D) condition.Answer: DQuestion Status: Previous Edition28) Mark reviewed his homeowners policy. He learned that his personal property was insured on an actual cash value basis. He would like replacement cost coverage on the property. He contacted his agent who said, "I'll simply add an amendment to your contract that changes the basis of recovery to replacement cost." The written provision the agent was referring to is called a(n)A) endorsement.B) coinsurance clause.C) binder.D) deductible.Answer: AQuestion Status: Previous Edition29) Under the terms of Jenny's auto insurance policy, she must pay the first $500 of any physical damage loss to her vehicle before her insurer will pay anything. What type of deductible is included in Jenny's auto insurance policyA) calendar-year deductibleB) corridor deductibleC) straight deductibleD) aggregate deductibleAnswer: CQuestion Status: Previous Edition30) Shauna hurt her back and was unable to work. She filed a claim under her disability income insurance policy. Under terms of the policy, 60 days must pass between the date of the injury and when the insurer begins to replace lost earnings. This 60-day period is called a(n)A) grace period.B) enrollment period.C) probationary period.D) elimination (waiting) period.Answer: DQuestion Status: Previous Edition31) ABC Company insured its building on a replacement cost basis for $700,000 undera property insurance policy that included an 80 percent coinsurance clause. The building had a replacement cost of $1 million when it sustained a $40,000 loss. How much will ABC Company receive from its insurer, assuming no deductible appliesA) $33,333B) $35,000C) $36,000D) $40,000Answer: BQuestion Status: Previous Edition32) XYZ Company insured its building on a replacement cost basis for $450,000 undera property insurance policy that included an 80 percent coinsurance clause. The building had a replacement cost of $500,000 when it sustained a $50,000 loss. How much will XYZ Company receive from its insurer, assuming no deductible appliesA) $42,500B) $45,000C) $50,000D) $56,250Answer: CQuestion Status: Previous Edition33) Laura's major medical insurance policy includes a $500 deductible and an 80-20 coinsurance clause. Laura was hospitalized and her covered medical expenses were $10,500. How much of the $10,500 will be paid by the insurer under Laura's major medical policyA) $7,500B) $7,900C) $8,000D) $10,000Answer: CQuestion Status: Previous Edition34) James purchased liability insurance with a $100,000 limit from Insurer A. When Insurer A denied a claim that James thought should be covered, he bought a second liability insurance policy with a $150,000 limit from Insurer B. Before he cancelled the policy with Insurer A, a $60,000 loss occurred. If this loss is settled on a pro rata basis, how much must each insurer payA) Insurer A will pay $10,000 and Insurer B will pay $50,000.B) Insurer A will pay $20,000 and Insurer B will pay $40,000.C) Insurer A will pay $24,000 and Insurer B will pay $36,000.D) Insurer A will pay $40,000 and Insurer B will pay $20,000.Answer: CQuestion Status: Previous Edition35) Jane purchased a $50,000 liability insurance policy from Insurer A. Fearing that she did not have enough liability insurance, she purchased an additional $100,000 of liability coverage from Insurer B. As a result of her negligence, Jane was ordered to pay $75,000 in damages. Assuming the coverage from Insurer A is primary and the coverage from Insurer B is excess, how will this claim be settledA) Insurer A will pay $50,000 and Insurer B will pay $25,000.B) Insurer A will pay $37,500 and Insurer B will pay $37,500.C) Insurer A will pay $25,000 and Insurer B will pay $50,000.D) Insurer A will pay nothing and Insurer B will pay $75,000.Answer: AQuestion Status: Previous Edition36) One method of providing group health insurance is a basic medical expense plan supplemented with major medical insurance. The insured is required to pay a deductible between where the basic coverage ends and where the major medical coverage begins. This deductible is called a(n)A) corridor deductible.B) waiting period.C) aggregate deductible.D) straight deductible.Answer: AQuestion Status: Previous Edition37) The purpose of a coordination-of-benefits provision in group health insurance plans is toA) determine which plan pays first if more than one plan covers a loss.B) determine which health care provider an insured may use for his or her care.C) determine if the calendar-year deductible has been satisfied by the insured.D) determine if the employee is eligible for coverage under the group health plan. Answer: AQuestion Status: Previous Edition38) As an alternative to coinsurance, rate discounts can be given as the amount of insurance to value increases. This alternative is calledA) graded rates.B) agreed value coverage.C) retrospective rating.D) manual rating.Answer: AQuestion Status: New39) Mark owns a building that he insured for $90,000. The replacement cost of the building is $100,000. Mark's property insurance policy has an 80 percent coinsurance clause and no deductible. If Mark's building is destroyed by a covered peril, how much will Mark receive from his insurerA) $80,000B) $90,000C) $101,250D) $112,500Answer: BQuestion Status: New。
瑞达 Rejda 保险教材英文练习题09-范本模板
Principles of Risk Management and Insurance，11e（Rejda）Chapter 9 Fundamental Legal Principles1）Fundamental purposes of the principle of indemnity include which of the following？I. To reduce physical hazards。
II. To prevent the insured from profiting from insurance.A) I onlyB) II onlyC) both I and IID）neither I nor IIAnswer： BQuestion Status：Previous Edition2) Which of the following is a fundamental purpose of the principle of indemnity?A）to reduce moral hazardB) to minimize physical hazardsC）to settle property insurance losses on a replacement cost basisD) to require deductibles in all property insurance policiesAnswer: AQuestion Status: Previous Edition3) Sam's furniture was destroyed by a fire. The furniture cost $1200 when it was purchased, but similar new furniture now costs ＄1800。
Assuming the furniture was 50 percent depreciated, what is the actual cash value of Sam’s loss？A) $600B) $900C）$1200D) $1800Answer： BQuestion Status: Revised4) All of the following are exceptions to the principle of indemnity EXCEPTA）life insurance。
瑞达 Rejda 保险教材英文练习题10
Principles of Risk Management and Insurance, 11e (Rejda)Chapter 10 Analysis of Insurance Contracts1) The portion of a property and liability insurance contract that contains information about the property or activity to be insured is called theA) declarations.B) insuring agreement.C) exclusions.D) conditions.Answer: AQuestion Status: Previous Edition2) What information is contained in the insuring agreement of an insurance policy?A) a description of the property or life to be insuredB) a summary of the major promises of the insurerC) a summary of the obligations of the insuredD) a list of the property, losses, and perils that are not coveredAnswer: BQuestion Status: Previous Edition3) Which of the following statements about "all-risks" coverage is (are) true?I. All losses are covered except those losses specifically excluded.II. The burden of proof is on the insured to prove that a loss is covered.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition4) The exclusion of flood in a homeowners policy is an example of anA) excluded activity.B) excluded condition.C) excluded property.D) excluded peril.Answer: DQuestion Status: Previous Edition5) Exclusions are used in insurance policies for all of the following reasons EXCEPTA) to reduce moral hazard.B) to waive policy conditions.C) to eliminate coverage for uninsurable perils.D) to eliminate coverage not needed by typical insureds. Answer: BQuestion Status: Previous Edition6) Reasons why a peril may be considered uninsurable and therefore excluded from insurance contracts include which of the following?I. The losses from the occurrence of the peril may be due to a predictable decline in value.II. The losses from the occurrence of the peril may be incalculable and catastrophic.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition7) The policy provision requiring the filing of proof of loss with the insurer is an example of a(n)A) declaration.B) condition.C) insuring agreement.D) miscellaneous provision.Answer: BQuestion Status: Previous Edition8) Which of the following statements about the definition of the insured is (are) true?I. In some cases, a person who is not specifically named may be classified as an insured.II. Under no circumstances can more than one person be named as an insured.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition9) All of the following statements about endorsements and riders are true EXCEPTA) They are usually written.B) They can be used to add or delete policy provisions.C) They normally take precedence over other conflicting policy provisions.D) They are primarily used to circumvent legislation requiring specific policy provisions.Answer: DQuestion Status: Previous Edition10) Deductibles are used in all of the following types of insurance EXCEPTA) life insurance.B) health insurance.C) property insurance.D) automobile insurance.Answer: AQuestion Status: Previous Edition11) All of the following are purposes of deductibles EXCEPTA) to eliminate small claims.B) to reduce premiums.C) to reduce attitudinal hazard.D) to exclude uninsurable perils.Answer: DQuestion Status: Revised12) The deductible used for automobile collision losses is an example of a(n)A) corridor deductible.B) elimination period.C) straight deductible.D) aggregate deductible.Answer: CQuestion Status: Previous Edition13) Which of the following statements about a calendar-year deductible is (are) true?I. It requires the insured to pay a specified amount of each claim regardless of when the claim occurs during the year and regardless of any previous claims during the year.II. It is used only in policies which cover direct property losses.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: DQuestion Status: Previous Edition14) A provision in a disability income insurance policy that requires a person to be disabled for 60 days before receiving benefits is an example of a(n)A) corridor deductible.B) grace period.C) elimination period.D) probationary period.Answer: CQuestion Status: Revised15) At what point in time must an insured meet the coinsurance requirement in a property insurance policy in order to avoid having to pay a portion of the loss?A) only at the time of lossB) only at the time when the policy is issuedC) only at the time of policy applicationD) both at the time when the policy is issued and at the time of loss Answer: AQuestion Status: Revised16) David owns a commercial building with a replacement cost of $4 million. The building is insured on a replacement cost basis for $3 million under a fire insurance policy that has an 80 percent coinsurance clause. How much will David collect if the building sustains a covered fire loss with a replacement cost of $320,000?A) $266,667B) $275,000C) $300,000D) $320,000Answer: CQuestion Status: Previous Edition17) The primary purpose of coinsurance in property insurance is toA) reduce moral hazard.B) achieve equity in rating.C) minimize problems in settling claims.D) eliminate small losses.Answer: BQuestion Status: Previous Edition18) Which of the following statements about problems arising from the use of a coinsurance clause is (are) true?I. The amount of insurance should be periodically evaluated to avoid a coinsurance penalty because of inflation.II. An agreed value coverage option is one method used to solve the problem of values that fluctuate throughout the policy term.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition19) Connie has a major medical policy with a $200 deductible and a 75-25 coinsurance clause. If she has eligible medical expenses of $10,000, how much will be paid by her insurer?A) $7,300B) $7,350C) $7,500D) $9,800Answer: BQuestion Status: Previous Edition20) Purposes of the coinsurance clause in health insurance contracts include which of the following?I. To reduce premiums.II. To exclude coverage for certain medical procedures.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition21) The purpose of other-insurance provisions is toA) eliminate the need for deductibles.B) penalize those insureds who carry inadequate amounts of insurance.C) specify who will pay losses if the insurer is bankrupt.D) preserve the principle of indemnity.Answer: DQuestion Status: Previous Edition22) Lisa has three fire insurance policies on her office building. The policy from company A is for $400,000, and the policies from companies B and C are for $100,000 each. If Lisa has a $360,000 loss, how much of the loss will be covered by each policy if the loss is settled on a pro rata basis by the insurers?A) each policy: $120,000B) policy A: $160,000; policies B and C: $100,000 eachC) policy A: $240,000; policies B and C: $60,000 eachD) policy A: $360,000; policies B and C: nothingAnswer: CQuestion Status: Previous Edition23) Kevin has three liability policies which provide for contribution by equal shares if other insurance applies to a loss. How much will each policy pay for a $3,000,000 liability judgment if policy A provides $500,000 of coverage, policy B provides $1,000,000 of coverage, and policy C provides $3,000,000 of coverage?A) Each policy will pay $500,000, and Kevin must pay the remaining $1,500,000.B) Policy A will pay $500,000, policies B and C will each pay $1,000,000, and Kevin must pay the remaining $500,000.C) Policy A will pay nothing, policy B will pay $1,000,000, and policy C will pay $2,000,000.D) Policy A will pay $500,000, policy B will pay $1,000,000, and policy C will pay $1,500,000.Answer: DQuestion Status: Previous Edition24) Helen and John both own automobiles on which they carry liability insurance. If Helen is negligent and has an accident while driving John's car, how will each insurer respond to any liability judgment against Helen?A) The insurers will pay the judgment on a pro rata basis.B) John's insurer will pay on an excess basis if Helen's insurance is insufficient to cover the judgment.C) Helen's insurance will pay on an excess basis if John's insurance is insufficient to cover the judgment.D) The policies will pay the judgment on the basis of contribution by equal shares. Answer: CQuestion Status: Previous Edition25) Kate is covered under her employer's group health plan. She is also covered as a dependent under her husband's group health plan. Under the usual coordination-of-benefits provision, how will each company respond to a claim filed by Kate?A) Kate's plan is primary, and her husband's plan is excess.B) Her husband's plan is primary, and Kate's plan is excess.C) The plan of the person with the birthday earliest in the year pays first, and the other plan is excess.D) Each plan will pay 50 percent of the claim.Answer: AQuestion Status: Previous Edition26) Eric's property was damaged in an accident. He phoned his agent to see if the loss was covered under his property insurance policy. The agent said, "As long as the cause of loss is not specifically excluded in the policy, the loss is covered." Based on the agent's answer, what type of insuring agreement appears in the policy?A) unconditional coverageB) named-perils coverageC) extended-perils coverageD) "all-risks" coverageAnswer: DQuestion Status: Previous Edition27) Janet hit a wall causing a large dent in the fender of her car. She was busy at work and delayed reporting the damage to her insurer for 9 months. The insurer denied the claim, stating, "Although such a loss is usually covered, you are required under the terms of the contract to provide prompt notification in case of loss." The prompt notification requirement is an example of a(n)A) declaration.B) definition.C) insuring agreement.D) condition.Answer: DQuestion Status: Previous Edition28) Mark reviewed his homeowners policy. He learned that his personal property was insured on an actual cash value basis. He would like replacement cost coverage on the property. He contacted his agent who said, "I'll simply add an amendment to your contract that changes the basis of recovery to replacement cost." The written provision the agent was referring to is called a(n)A) endorsement.B) coinsurance clause.C) binder.D) deductible.Answer: AQuestion Status: Previous Edition29) Under the terms of Jenny's auto insurance policy, she must pay the first $500 of any physical damage loss to her vehicle before her insurer will pay anything. What type of deductible is included in Jenny's auto insurance policy?A) calendar-year deductibleB) corridor deductibleC) straight deductibleD) aggregate deductibleAnswer: CQuestion Status: Previous Edition30) Shauna hurt her back and was unable to work. She filed a claim under her disability income insurance policy. Under terms of the policy, 60 days must pass between the date of the injury and when the insurer begins to replace lost earnings. This 60-day period is called a(n)A) grace period.B) enrollment period.C) probationary period.D) elimination (waiting) period.Answer: DQuestion Status: Previous Edition31) ABC Company insured its building on a replacement cost basis for $700,000 undera property insurance policy that included an 80 percent coinsurance clause. The building had a replacement cost of $1 million when it sustained a $40,000 loss. How much will ABC Company receive from its insurer, assuming no deductible applies?A) $33,333B) $35,000C) $36,000D) $40,000Answer: BQuestion Status: Previous Edition32) XYZ Company insured its building on a replacement cost basis for $450,000 undera property insurance policy that included an 80 percent coinsurance clause. The building had a replacement cost of $500,000 when it sustained a $50,000 loss. How much will XYZ Company receive from its insurer, assuming no deductible applies?A) $42,500B) $45,000C) $50,000D) $56,250Answer: CQuestion Status: Previous Edition33) Laura's major medical insurance policy includes a $500 deductible and an 80-20 coinsurance clause. Laura was hospitalized and her covered medical expenses were $10,500. How much of the $10,500 will be paid by the insurer under Laura's major medical policy?A) $7,500B) $7,900C) $8,000D) $10,000Answer: CQuestion Status: Previous Edition34) James purchased liability insurance with a $100,000 limit from Insurer A. When Insurer A denied a claim that James thought should be covered, he bought a second liability insurance policy with a $150,000 limit from Insurer B. Before he cancelled the policy with Insurer A, a $60,000 loss occurred. If this loss is settled on a pro rata basis, how much must each insurer pay?A) Insurer A will pay $10,000 and Insurer B will pay $50,000.B) Insurer A will pay $20,000 and Insurer B will pay $40,000.C) Insurer A will pay $24,000 and Insurer B will pay $36,000.D) Insurer A will pay $40,000 and Insurer B will pay $20,000.Answer: CQuestion Status: Previous Edition35) Jane purchased a $50,000 liability insurance policy from Insurer A. Fearing that she did not have enough liability insurance, she purchased an additional $100,000 of liability coverage from Insurer B. As a result of her negligence, Jane was ordered to pay $75,000 in damages. Assuming the coverage from Insurer A is primary and the coverage from Insurer B is excess, how will this claim be settled?A) Insurer A will pay $50,000 and Insurer B will pay $25,000.B) Insurer A will pay $37,500 and Insurer B will pay $37,500.C) Insurer A will pay $25,000 and Insurer B will pay $50,000.D) Insurer A will pay nothing and Insurer B will pay $75,000. Answer: AQuestion Status: Previous Edition36) One method of providing group health insurance is a basic medical expense plan supplemented with major medical insurance. The insured is required to pay a deductible between where the basic coverage ends and where the major medical coverage begins. This deductible is called a(n)A) corridor deductible.B) waiting period.C) aggregate deductible.D) straight deductible.Answer: AQuestion Status: Previous Edition37) The purpose of a coordination-of-benefits provision in group health insurance plans is toA) determine which plan pays first if more than one plan covers a loss.B) determine which health care provider an insured may use for his or her care.C) determine if the calendar-year deductible has been satisfied by the insured.D) determine if the employee is eligible for coverage under the group health plan. Answer: AQuestion Status: Previous Edition38) As an alternative to coinsurance, rate discounts can be given as the amount of insurance to value increases. This alternative is calledA) graded rates.B) agreed value coverage.C) retrospective rating.D) manual rating.Answer: AQuestion Status: New39) Mark owns a building that he insured for $90,000. The replacement cost of the building is $100,000. Mark's property insurance policy has an 80 percent coinsurance clause and no deductible. If Mark's building is destroyed by a covered peril, how much will Mark receive from his insurer?A) $80,000B) $90,000C) $101,250D) $112,500Answer: BQuestion Status: New。
瑞达rejda保险教材英文练习题10
Principles of Risk Management and Insurance, 11e (Rejda)Chapter 10 Analysis of Insurance Contracts1) The portion of a property and liability insurance contract that contains information about the property or activity to be insured is called theA) declarations.B) insuring agreement.C) exclusions.D) conditions.Answer: AQuestion Status: Previous Edition2) What information is contained in the insuring agreement of an insurance policyA) a description of the property or life to be insuredB) a summary of the major promises of the insurerC) a summary of the obligations of the insuredD) a list of the property, losses, and perils that are not coveredAnswer: BQuestion Status: Previous Edition3) Which of the following statements about "all-risks" coverage is (are) trueI. All losses are covered except those losses specifically excluded.II. The burden of proof is on the insured to prove that a loss is covered.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition4) The exclusion of flood in a homeowners policy is an example of anA) excluded activity.B) excluded condition.C) excluded property.D) excluded peril.Answer: DQuestion Status: Previous Edition5) Exclusions are used in insurance policies for all of the following reasons EXCEPTA) to reduce moral hazard.B) to waive policy conditions.C) to eliminate coverage for uninsurable perils.D) to eliminate coverage not needed by typical insureds. Answer: BQuestion Status: Previous Edition6) Reasons why a peril may be considered uninsurable and therefore excluded from insurance contracts include which of the followingI. The losses from the occurrence of the peril may be due to a predictable decline in value.II. The losses from the occurrence of the peril may be incalculable and catastrophic.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition7) The policy provision requiring the filing of proof of loss with the insurer is an example of a(n)A) declaration.B) condition.C) insuring agreement.D) miscellaneous provision.Answer: BQuestion Status: Previous Edition8) Which of the following statements about the definition of the insured is (are) trueI. In some cases, a person who is not specifically named may be classified as an insured.II. Under no circumstances can more than one person be named as an insured.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition9) All of the following statements about endorsements and riders are true EXCEPTA) They are usually written.B) They can be used to add or delete policy provisions.C) They normally take precedence over other conflicting policy provisions.D) They are primarily used to circumvent legislation requiring specific policy provisions.Answer: DQuestion Status: Previous Edition10) Deductibles are used in all of the following types of insurance EXCEPTA) life insurance.B) health insurance.C) property insurance.D) automobile insurance.Answer: AQuestion Status: Previous Edition11) All of the following are purposes of deductibles EXCEPTA) to eliminate small claims.B) to reduce premiums.C) to reduce attitudinal hazard.D) to exclude uninsurable perils.Answer: DQuestion Status: Revised12) The deductible used for automobile collision losses is an example of a(n)A) corridor deductible.B) elimination period.C) straight deductible.D) aggregate deductible.Answer: CQuestion Status: Previous Edition13) Which of the following statements about a calendar-year deductible is (are) trueI. It requires the insured to pay a specified amount of each claim regardless of when the claim occurs during the year and regardless of any previous claims during the year.II. It is used only in policies which cover direct property losses.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: DQuestion Status: Previous Edition14) A provision in a disability income insurance policy that requires a person to be disabled for 60 days before receiving benefits is an example of a(n)A) corridor deductible.B) grace period.C) elimination period.D) probationary period.Answer: CQuestion Status: Revised15) At what point in time must an insured meet the coinsurance requirement ina property insurance policy in order to avoid having to pay a portion of the lossA) only at the time of lossB) only at the time when the policy is issuedC) only at the time of policy applicationD) both at the time when the policy is issued and at the time of loss Answer: AQuestion Status: Revised16) David owns a commercial building with a replacement cost of $4 million. The building is insured on a replacement cost basis for $3 million under a fire insurance policy that has an 80 percent coinsurance clause. How much will David collect if the building sustains a covered fire loss with a replacement cost of $320,000A) $266,667B) $275,000C) $300,000D) $320,000Answer: CQuestion Status: Previous Edition17) The primary purpose of coinsurance in property insurance is toA) reduce moral hazard.B) achieve equity in rating.C) minimize problems in settling claims.D) eliminate small losses.Answer: BQuestion Status: Previous Edition18) Which of the following statements about problems arising from the use ofa coinsurance clause is (are) trueI. The amount of insurance should be periodically evaluated to avoid a coinsurance penalty because of inflation.II. An agreed value coverage option is one method used to solve the problem of values that fluctuate throughout the policy term.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition19) Connie has a major medical policy with a $200 deductible and a 75-25 coinsurance clause. If she has eligible medical expenses of $10,000, how much will be paid by her insurerA) $7,300B) $7,350C) $7,500D) $9,800Answer: BQuestion Status: Previous Edition20) Purposes of the coinsurance clause in health insurance contracts include which of the followingI. To reduce premiums.II. To exclude coverage for certain medical procedures.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition21) The purpose of other-insurance provisions is toA) eliminate the need for deductibles.B) penalize those insureds who carry inadequate amounts of insurance.C) specify who will pay losses if the insurer is bankrupt.D) preserve the principle of indemnity.Answer: DQuestion Status: Previous Edition22) Lisa has three fire insurance policies on her office building. The policy from company A is for $400,000, and the policies from companies B and C are for $100,000 each. If Lisa has a $360,000 loss, how much of the loss will be covered by each policy if the loss is settled on a pro rata basis by the insurersA) each policy: $120,000B) policy A: $160,000; policies B and C: $100,000 eachC) policy A: $240,000; policies B and C: $60,000 eachD) policy A: $360,000; policies B and C: nothingAnswer: CQuestion Status: Previous Edition23) Kevin has three liability policies which provide for contribution by equal shares if other insurance applies to a loss. How much will each policy pay for a $3,000,000 liability judgment if policy A provides $500,000 of coverage, policy B provides $1,000,000 of coverage, and policy C provides $3,000,000 of coverageA) Each policy will pay $500,000, and Kevin must pay the remaining $1,500,000.B) Policy A will pay $500,000, policies B and C will each pay $1,000,000, and Kevin must pay the remaining $500,000.C) Policy A will pay nothing, policy B will pay $1,000,000, and policy C will pay $2,000,000.D) Policy A will pay $500,000, policy B will pay $1,000,000, and policy C will pay $1,500,000.Answer: DQuestion Status: Previous Edition24) Helen and John both own automobiles on which they carry liability insurance. If Helen is negligent and has an accident while driving John's car, how will each insurer respond to any liability judgment against HelenA) The insurers will pay the judgment on a pro rata basis.B) John's insurer will pay on an excess basis if Helen's insurance is insufficient to cover the judgment.C) Helen's insurance will pay on an excess basis if John's insurance is insufficient to cover the judgment.D) The policies will pay the judgment on the basis of contribution by equal shares.Answer: CQuestion Status: Previous Edition25) Kate is covered under her employer's group health plan. She is also covered as a dependent under her husband's group health plan. Under the usual coordination-of-benefits provision, how will each company respond to a claim filed by KateA) Kate's plan is primary, and her husband's plan is excess.B) Her husband's plan is primary, and Kate's plan is excess.C) The plan of the person with the birthday earliest in the year pays first, and the other plan is excess.D) Each plan will pay 50 percent of the claim.Answer: AQuestion Status: Previous Edition26) Eric's property was damaged in an accident. He phoned his agent to see if the loss was covered under his property insurance policy. The agent said, "As long as the cause of loss is not specifically excluded in the policy, the loss is covered." Based on the agent's answer, what type of insuring agreement appears in the policyA) unconditional coverageB) named-perils coverageC) extended-perils coverageD) "all-risks" coverageAnswer: DQuestion Status: Previous Edition27) Janet hit a wall causing a large dent in the fender of her car. She was busy at work and delayed reporting the damage to her insurer for 9 months. The insurer denied the claim, stating, "Although such a loss is usually covered, you are required under the terms of the contract to provide prompt notification in case of loss." The prompt notification requirement is an example of a(n)A) declaration.B) definition.C) insuring agreement.D) condition.Answer: DQuestion Status: Previous Edition28) Mark reviewed his homeowners policy. He learned that his personal property was insured on an actual cash value basis. He would like replacement cost coverage on the property. He contacted his agent who said, "I'll simply add an amendment to your contract that changes the basis of recovery to replacement cost." The written provision the agent was referring to is called a(n)A) endorsement.B) coinsurance clause.C) binder.D) deductible.Answer: AQuestion Status: Previous Edition29) Under the terms of Jenny's auto insurance policy, she must pay the first $500 of any physical damage loss to her vehicle before her insurer will pay anything. What type of deductible is included in Jenny's auto insurance policyA) calendar-year deductibleB) corridor deductibleC) straight deductibleD) aggregate deductibleAnswer: CQuestion Status: Previous Edition30) Shauna hurt her back and was unable to work. She filed a claim under her disability income insurance policy. Under terms of the policy, 60 days must pass between the date of the injury and when the insurer begins to replace lost earnings. This 60-day period is called a(n)A) grace period.B) enrollment period.C) probationary period.D) elimination (waiting) period.Answer: DQuestion Status: Previous Edition31) ABC Company insured its building on a replacement cost basis for $700,000 under a property insurance policy that included an 80 percent coinsurance clause. The building had a replacement cost of $1 million when it sustained a $40,000 loss. How much will ABC Company receive from its insurer, assuming no deductible appliesA) $33,333B) $35,000C) $36,000D) $40,000Answer: BQuestion Status: Previous Edition32) XYZ Company insured its building on a replacement cost basis for $450,000 under a property insurance policy that included an 80 percent coinsurance clause. The building had a replacement cost of $500,000 when it sustained a $50,000 loss. How much will XYZ Company receive from its insurer, assuming no deductible appliesA) $42,500B) $45,000C) $50,000D) $56,250Answer: CQuestion Status: Previous Edition33) Laura's major medical insurance policy includes a $500 deductible and an 80-20 coinsurance clause. Laura was hospitalized and her covered medical expenses were $10,500. How much of the $10,500 will be paid by the insurer under Laura's major medical policyA) $7,500B) $7,900C) $8,000D) $10,000Answer: CQuestion Status: Previous Edition34) James purchased liability insurance with a $100,000 limit from Insurer A. When Insurer A denied a claim that James thought should be covered, he bought a second liability insurance policy with a $150,000 limit from Insurer B. Before he cancelled the policy with Insurer A, a $60,000 loss occurred. If this loss is settled on a pro rata basis, how much must each insurer payA) Insurer A will pay $10,000 and Insurer B will pay $50,000.B) Insurer A will pay $20,000 and Insurer B will pay $40,000.C) Insurer A will pay $24,000 and Insurer B will pay $36,000.D) Insurer A will pay $40,000 and Insurer B will pay $20,000.Answer: CQuestion Status: Previous Edition35) Jane purchased a $50,000 liability insurance policy from Insurer A. Fearing that she did not have enough liability insurance, she purchased an additional $100,000 of liability coverage from Insurer B. As a result of her negligence, Jane was ordered to pay $75,000 in damages. Assuming the coverage from Insurer A is primary and the coverage from Insurer B is excess, how will this claim be settledA) Insurer A will pay $50,000 and Insurer B will pay $25,000.B) Insurer A will pay $37,500 and Insurer B will pay $37,500.C) Insurer A will pay $25,000 and Insurer B will pay $50,000.D) Insurer A will pay nothing and Insurer B will pay $75,000. Answer: AQuestion Status: Previous Edition36) One method of providing group health insurance is a basic medical expense plan supplemented with major medical insurance. The insured is required to pay a deductible between where the basic coverage ends and where the major medical coverage begins. This deductible is called a(n)A) corridor deductible.B) waiting period.C) aggregate deductible.D) straight deductible.Answer: AQuestion Status: Previous Edition37) The purpose of a coordination-of-benefits provision in group health insurance plans is toA) determine which plan pays first if more than one plan covers a loss.B) determine which health care provider an insured may use for his or her care.C) determine if the calendar-year deductible has been satisfied by the insured.D) determine if the employee is eligible for coverage under the group health plan.Answer: AQuestion Status: Previous Edition38) As an alternative to coinsurance, rate discounts can be given as the amount of insurance to value increases. This alternative is calledA) graded rates.B) agreed value coverage.C) retrospective rating.D) manual rating.Answer: AQuestion Status: New39) Mark owns a building that he insured for $90,000. The replacement cost of the building is $100,000. Mark's property insurance policy has an 80 percent coinsurance clause and no deductible. If Mark's building is destroyed by a covered peril, how much will Mark receive from his insurerA) $80,000B) $90,000C) $101,250D) $112,500Answer: BQuestion Status: New。
瑞达 Rejda 保险教材英文练习题20
Principles of Risk Management and Insurance, 11e (Rejda)Chapter 20 Homeowners Insurance, Section I1) Which of the following statements is (are) true regarding renters insurance?I. Renters insurance is needed if you rent a house, but is not needed if you rent an apartment.II. The ISO renter's policy provides "all-risks" coverage on the insured's personal property.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: DQuestion Status: Previous Edition2) Which of the following statements about eligibility requirements for homeowners insurance is (are) true?I. A contract can be written on a twenty-unit apartment complex as long as the tenants are families.II. Separate forms are available for renters and condominium owners.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition3) All of the following statements about the Homeowners 6 (unit-owners form) policy are true EXCEPTA) It includes personal liability coverage.B) It covers personal property on an "all-risks" basis.C) It provides limited coverage for improvements and alterations.D) It provides limited coverage for loss assessments.Answer: BQuestion Status: Previous Edition4) Which homeowners policy is designed for the tenants of rented premises?A) Homeowners 2B) Homeowners 4C) Homeowners 6D) Homeowners 8Answer: BQuestion Status: Previous Edition5) Which of the following statements about the Homeowners 8 policy is (are) true?I. Losses to the dwelling are settled on a replacement cost basis if the dwelling is insured for its full market value.II. It is designed primarily for expensive, newer, dwellings.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: DQuestion Status: Previous Edition6) Which of the following statements about the Homeowners 3 policy is (are) true?I. Losses to the dwelling are always settled on an actual cash value basis.II. Coverage on personal property is limited to $5,000.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: DQuestion Status: Previous Edition7) The major difference between the Homeowners 2 policy and the Homeowners 3 policy is theA) insured perils for the dwelling.B) insured perils for personal property.C) type of liability coverage provided.D) amount of coverage for other structures.Answer: AQuestion Status: Previous Edition8) Persons insureds under Section I of the Homeowners 3 policy include which of the following?I. A spouse of the named insured if living in the same householdII. The named insured's children who are under age 24 and who are full-time college studentsA) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition9) Section I of the Homeowners 3 policy provides coverage for all of the following EXCEPTA) loss of use.B) personal property.C) other structures.D) medical payments.Answer: DQuestion Status: Previous Edition10) All of the following are covered under the dwelling coverage (Coverage A) of the Homeowners 3 policy EXCEPTA) any structure attached to the dwelling.B) the land on which the insured dwelling is located.C) materials and supplies intended for alteration or repair of the dwelling.D) materials and supplies intended for construction of a detached garage. Answer: BQuestion Status: Previous Edition11) Which of the following statements about the coverage for other structures (Coverage B) under the Homeowners 3 policy is true?A) The amount of insurance on other structures is equal to a percentage of the coverage on the dwelling.B) Structures attached to the dwelling by a fence or utility line are considered to be part of the dwelling rather than other structures.C) Coverage applies even if the other structure is used for business purposes.D) There is no coverage for a private garage if it is rented to a tenant of the dwelling.Answer: AQuestion Status: Previous Edition12) All of the following losses are subject to special limits of liability under the Homeowners 3 policy EXCEPT theA) theft of firearms.B) destruction by fire of property used for business purposes.C) storm damage to a boat at a marina.D) destruction of jewelry by fire.Answer: DQuestion Status: Previous Edition13) Which of the following statements about the personal property coverage (Coverage C) of the Homeowners 3 policy is (are) true?I. The coverage applies only in the United States and Canada.II. The full amount of coverage applies only if the property is permanently located at any residence of the insured.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: DQuestion Status: Previous Edition14) The Homeowners 3 policy limits the amount of coverage provided on certain personal property (e.g. coin collections and silverware). This personal property can be adequately insured byA) lowering the deductible which applies to personal property losses.B) storing the property away from the home at another location.C) adding a schedule to the policy listing the property with specific amounts of insurance.D) adding an appraisal clause to the policy.Answer: CQuestion Status: Previous Edition15) Which of the following property is covered under the personal property coverage (Coverage C) of the Homeowners 3 policy?A) a pet iguana owned by the named insured's spouseB) a bicycle owned by a foster child living with the named insuredC) music CDs located in the named insured's automobileD) a stamp collection insured under a separate policyAnswer: BQuestion Status: Previous Edition16) All of the following statements about the coverage for loss of use (CoverageD) under the Homeowners 3 policy are true EXCEPTA) If a covered loss makes the home unfit for living, the insurer pays additional living expenses the insured may incur as a result of the loss.B) The duration of payments for additional living expenses is limited to a maximum of 15 days.C) There is coverage for the fair rental value of any part of the premises rented to others.D) There is coverage if civil authorities prohibit the insured from using the premises because of a loss to a neighboring premises from an insured peril. Answer: BQuestion Status: Previous Edition17) Which of the following statements about the additional coverages under SectionI of the Homeowners 3 policy is true?A) There is coverage for the reasonable cost incurred to protect property from further damage after a covered loss occurs.B) There is unlimited coverage for furnishings of the landlord in an apartment on the premises that is rented to others.C) Property removed from the premises because it is endangered by an insured peril is covered on a named-perils basis while it is outside the insured premises.D) Damage caused by the settling of the insured structure is covered as a collapse.Answer: AQuestion Status: Previous Edition18) All of the following are additional coverages under Section I of the Homeowners3 policy EXCEPTA) the reasonable expenses of removing debris of covered property after an insured loss.B) fire department service charges for which the insured is liable by contract or agreement.C) damage to trees and shrubs caused by a windstorm.D) losses incurred from the unauthorized use of a stolen credit card. Answer: CQuestion Status: Previous Edition19) All of the following are covered perils under the personal property coverage (Coverage C) of an unendorsed Homeowners 3 policy EXCEPTA) earthquake.B) theft.C) windstorm.D) explosion.Answer: AQuestion Status: Previous Edition20) Which of the following losses to a dwelling would be covered under an unendorsed Homeowners 3 policy?A) smoke damage resulting from agricultural operations of a neighboring farmerB) damage to the structure caused by a flash floodC) damage to the structure caused by the weight of heavy snowD) damage to a floor caused by water backing up through a sewer pipeAnswer: CQuestion Status: Previous Edition21) Which of the following statements about covered perils under the personal property coverage (Coverage C) of the Homeowners 3 policy is true?A) Theft losses to boats and watercraft are covered only if they occur at the insured's residence.B) Damage from an explosion is covered only if the explosion is the result of fire or lightning.C) Property damage from vehicles is covered only if it is caused by the insured.D) Smoke damage is covered only if it arises from agricultural or industrial operations.Answer: AQuestion Status: Previous Edition22) Which of the following types of water damage is covered under an unendorsedHomeowners 3 policy?A) damage from floodB) damage from water backing up through a drainC) damage from water below the surface of the ground that seeps into a basementD) damage from water that overflows from a malfunctioning washing machine Answer: DQuestion Status: Previous Edition23) All of the following are general exclusions under Section I of the Homeowners3 policy EXCEPTA) losses due to earthquake.B) losses due to the failure of the insured to use all reasonable means to save and preserve property after the time of a loss.C) losses resulting from a power failure caused by an insured peril at the residence premises.D) losses due to radiation from a nuclear power plant.Answer: CQuestion Status: Revised24) Which of the following is (are) included among the duties of an insured followinga loss covered under the Homeowners 3 policy?I. To file a proof of loss within a specified time period after the insurer's request.II. To prepare an inventory of damaged personal property.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition25) Which of the following statements about the replacement cost provision of the Homeowners 3 policy is true?A) It applies to personal property losses only.B) Except for small losses, the insured must repair or replace the damaged property in order to receive full replacement cost.C) The insured is required to carry an amount of insurance equal to 100 percent of the replacement value of the insured property.D) Loss settlements are equal to 50 percent of the value of the loss if the insured is carrying less than the required amount of insurance.Answer: BQuestion Status: Previous Edition26) David has a Homeowners 3 policy that provides $280,000 of insurance on his dwelling, which has a current replacement value of $400,000. Ignoring any deductible, how much will David collect if a kitchen with a replacement value of $24,000 but an actual cash value of $18,000 is destroyed in a fire?A) $18,000B) $20,000C) $21,000D) $24,000Answer: CQuestion Status: Previous Edition27) Which of the following statements about the appraisal clause in the Homeowners3 policy is (are) true?I. It is used to determine a value for personal property when the policy is issued. II. It is used to help settle disputes over the amount of a loss after a loss has occurred.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition28) Under the Homeowners 3 policy, all of the following are options of the insurer for settling claims EXCEPTA) paying the claim in cash.B) replacing the property.C) repairing the property.D) paying the claim with insurance company stock.Answer: DQuestion Status: Previous Edition29) All of the following are duties of the mortgagee under the standard mortgage clause EXCEPTA) to reimburse the insurer for any loss payments.B) to notify the insurer of any change in ownership of the property of which the mortgagee is aware.C) to provide a proof of loss form if the insured fails to do so.D) to pay the premium if the insured fails to do so.Answer: AQuestion Status: Previous Edition30) All of the following statements about the cancellation of a Homeowners 3 policy are true EXCEPTA) The insurer may cancel a new policy for any reason if it has been in force for less than 60 days and is not a renewal policy.B) At least 100 days notice of cancellation must be given if an insurer cancels a policy for nonpayment of premium.C) A policy written for longer than 1 year can be cancelled for any reason on the anniversary date by giving the insured at least 30 days notice of cancellation.D) After a policy has been in force for at least 60 days, it can be cancelled by the insurer if the risk has increased substantially since the policy was issued. Answer: BQuestion Status: Previous Edition31) All of the following statements about conditions under a homeowners policy are true EXCEPTA) If an insurer broadens coverage without an additional premium during the policy period, the broadened coverage applies immediately to the present policy.B) A waiver or change in any policy provision must be approved in writing by the insurer to be valid.C) The insurer must give written consent for an assignment of the policy to be valid.D) If the named insured dies, coverage automatically ceases with respect to any property of the deceased.Answer: DQuestion Status: Previous Edition32) Cal is renting an apartment. Which homeowners policy is specially designed to insure renters?A) HO-2B) HO-3C) HO-4D) HO-6Answer: CQuestion Status: Previous Edition33) Shauna purchased a condominium unit. Which homeowners policy is specially designed for condominium unit owners?A) HO-2B) HO-3C) HO-4D) HO-6Answer: DQuestion Status: Previous Edition34) Michelle had four matching end tables in her home. A fire damaged the home, destroying two of the end tables. Michelle's home was covered by an unendorsed Homeowners 3 policy. Which of the following is true with regard to the settlement for the end tables in this case?A) Loss to a pair or set is excluded under the policy.B) The insurer will pay the difference in actual cash value of the property before and after the loss.C) The insurer will pay the replacement cost of the loss.D) If a partial loss to a pair or set occurs, the insurer is liable for replacement of the entire pair or set.Answer: BQuestion Status: Previous Edition35) Betty's personal property is insured for $100,000 under her Homeowners 3 policy. If she usually keeps some personal property at a mountain cabin that she owns, how much coverage for this property is available under her homeowners policy?A) $10,000B) $20,000C) $40,000D) $50,000Answer: AQuestion Status: Previous Edition36) Linda wants to purchase a homeowners policy, but she has some valuable personal property to which internal policy limits apply. Her agent said that she could obtain coverage under her homeowners policy by attaching a list of this valuable property with specific amounts of insurance. Such a listing is called a(n)A) binder.B) schedule.C) application.D) warranty.Answer: BQuestion Status: Previous Edition37) All of the following are additional coverages provided under Section I of the Homeowners 3 policy EXCEPTA) reasonable repairs.B) debris removal.C) personal liability.D) property removal.Answer: CQuestion Status: Previous Edition38) Darla purchased an unendorsed Homeowners 3 policy. While the policy was in force,a fire occurred that destroyed a living room set. The living room set cost $4,000 new, but was 25 percent depreciated when the loss occurred. Replacement furniture will cost $4,400. Assuming no deductible, how much will Darla receive from her insurer?A) $3,000B) $3,300C) $3,400D) $4,400Answer: BQuestion Status: Previous Edition39) A dwelling with a replacement cost of $150,000 was insured under a Homeowners 3 policy for $100,000 at the time the roof was destroyed by a windstorm. The actual cash value of the loss was $9,000, but it will cost $12,000 to replace the roof. Assuming no deductible, what will the insurer pay to settle this loss?A) $8,000B) $9,000C) $10,000D) $12,000Answer: CQuestion Status: Previous Edition40) Ellen believes the value of the loss to her home is $30,000. The insurer has offered $18,000 to settle the loss. If Ellen and the insurer cannot agree on the value of the loss, which homeowners policy provision specifies how this dispute will be settled?A) insurer's optionB) appraisal clauseC) loss payment clauseD) mortgage clauseAnswer: BQuestion Status: Previous Edition41) Ted purchased a home. To finance the purchase, he borrowed $140,000 from ABC Bank, pledging the home as collateral for the loan. Shortly after purchasing the home, Ted lost his job. He could not find another job and could not pay the mortgage each month. Ted set fire to the home. The claims adjuster suspected arson, and an investigation proved that Ted intentionally caused the loss. Under the mortgage clause of the Homeowners 3 policy, how will this loss be settled?A) The insurer has no liability because the loss was intentional.B) The insurer will pay Ted the actual cash value of the loss as intentional loss is not excluded.C) The insurer will pay ABC the value of its insurable interest and pay Ted the value of his insurable interest.D) The insurer will pay ABC the value of its insurable interest and then attempt to recoup the loss payment from Ted.Answer: DQuestion Status: Revised42) Mike and Susan built their "dream home." They insured their home for its full replacement cost. They also added an endorsement that will pay up to an additional 20 percent of the policy limit in case the cost of rebuilding the home after a loss is greater than the policy limit. The basis under which Mike and Susan insuredtheir home is calledA) actual cash value.B) valued policy coverage.C) extended replacement cost.D) guaranteed replacement cost.Answer: CQuestion Status: Previous Edition43) Jose and Maria would like "all-risks" coverage on their home and their personal property. Which unendorsed homeowners form provides this coverage?A) Homeowners 2B) Homeowners 3C) Homeowners 4D) Homeowners 5Answer: DQuestion Status: Previous Edition44) All of the following statements about covered perils and loss settlement under an unendorsed Homeowners 3 policy are true EXCEPTA) The dwelling is covered on an all-risk basis.B) Personal property losses are settled on a replacement cost basis.C) Losses to the dwelling may be settled on an actual cash value basis.D) Personal property is covered on a named-perils basis.Answer: BQuestion Status: Previous Edition45) Which of the following statements is (are) true regarding how the Homeowners3 policy handles the peril of collapse?I. Collapse is specifically excluded, and there are no exceptions to the exclusion. II. Collapse that is caused by a Coverage C peril is covered.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition46) Following catastrophic hurricane losses, South Coast Insurance Company changed its deductible provision. Rather than using a specified dollar value, $250 for example; the dollar value of the deductible increases with the size of the loss. The type of deductible that South Coast changed to is called a(n)A) calendar-year deductible.B) corridor deductible.C) straight deductible.D) percentage deductible.Answer: DQuestion Status: Previous Edition47) If there is a conflict between state law and a provision in a homeowners policyA) the policy wording takes precedence.B) the state law takes precedence.C) the policyowner is entitled to whichever provides broader coverage.D) the policy is null and void.Answer: BQuestion Status: New48) A fire destroyed the home next door to Brad's home. The fire department chief was concerned that the damaged home would collapse on to Brad's home, so he ordered Brad to evacuate his home. Which of the following statements is true concerning the cost of Brad's hotel room while he is complying with the fire chief's order?A) The cost of the hotel room is not covered as Brad's home was not directly damaged.B) The cost of the hotel room is covered under the "fair rental value" coverage of Part D.C) The cost of the hotel room is covered under the "prohibited use" coverage of Part D.D) The cost of the hotel room is covered under the dwelling coverage of Part A. Answer: CQuestion Status: New。
瑞达Rejda保险教学材料英文理解练习知识题03
Principles of Risk Management and Insurance, 11e (Rejda)Chapter 3 Introduction to Risk Management1) Risk management is concerned withA) the identification and treatment of loss exposures.B) the management of speculative risks only.C) the management of pure risks that are uninsurable.D) the purchase of insurance only.Answer: AQuestion Status: Previous Edition2) A situation or circumstance in which a loss is possible, regardless of whether a loss occurs, is called aA) deductible.B) loss exposure.C) loss avoidance.D) peril.Answer: BQuestion Status: Previous Edition3) All of the following are risk management objectives prior to the occurrence of loss EXCEPTA) analysis of the cost of different techniques for handling losses.B) continuing operations after a loss.C) reduction of anxiety.D) meeting externally imposed obligations.Answer: BQuestion Status: Previous Edition4) Preloss objectives of risk management include which of the following?I. Preparing for potential losses in the most economical way.II. Reduction of anxiety.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition5) A risk manager is concerned withI. Identifying potential losses.II. Selecting the appropriate techniques for treating losses.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition6) Sources of information that can be used by a risk manager to identify pure loss exposures include all of the following EXCEPTA) risk analysis questionnaires.B) currency exchange rates.C) physical inspections.D) past losses.Answer: BQuestion Status: Previous Edition7) Loss severity is defined as theA) probable size of the losses which may occur during some period.B) probable number of losses which may occur during some period.C) probability that any particular piece of property may be totally destroyed.D) probability that a liability judgment may exceed a firm's net worth. Answer: AQuestion Status: Previous Edition8) Loss frequency is defined as theA) probable size of the losses that may occur during some period.B) probable number of losses that may occur during some period.C) probability that any particular piece of property may be totally destroyed.D) probability that a liability judgment may exceed a firm's net worth. Answer: BQuestion Status: Previous Edition9) The worst loss that could ever happen to a firm is referred to as theA) maximum possible loss.B) probable maximum loss.C) frequency of loss.D) severity of loss.Answer: AQuestion Status: Previous Edition10) The worst loss that is likely to happen is referred to as theA) maximum possible loss.B) probable maximum loss.C) frequency of loss.D) severity of loss.Answer: BQuestion Status: Previous Edition11) All of the following statements about avoidance are true EXCEPTA) Certain loss exposures are never acquired.B) Certain loss exposures may be abandoned.C) The chance of loss for certain loss exposures may be reduced to zero.D) It can be used for any loss exposure facing a firm.Answer: DQuestion Status: Previous Edition12) Abandoning an existing loss exposure is an example ofA) avoidance.B) retention.C) noninsurance transfer.D) insurance transfer.Answer: AQuestion Status: Previous Edition13) Which of the following conditions is (are) appropriate for using retention?I. Losses are difficult to predict.II. The worst possible loss is not serious.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition14) Which of the following statements regarding the use of retention is (are) true?I. Retention is best used for loss exposures that have a low frequency and a high severity.II. A financially strong firm can have a higher retention level than a firm whose financial position is weak.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition15) All of the following statements about captive insurers are true EXCEPTA) They may act as a profit center by insuring parties other than the parent company.B) They provide a way to obtain types of insurance that may be unavailable from commercial insurers.C) They increase the volatility of the parent company's earnings.D) They make it easier for a firm to have access to reinsurance.Answer: CQuestion Status: Previous Edition16) Which of the following statements about self-insurance is (are) true?I. It is a form of planned retention.II. State law usually prohibits its use for workers compensation.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition17) All of the following are potential advantages of retention EXCEPTA) lower expenses.B) increased cash flow.C) encouragement of loss prevention.D) protection from catastrophic losses.Answer: DQuestion Status: Previous Edition18) A restaurant owner leased a meeting room at the restaurant to a second party. The lease specified that the second party, not the restaurant owner, would be responsible for any liability arising out of the use of the meeting room, and that the restaurant owner would be "held harmless" for any damages. The restaurant owner's use of the hold-harmless agreement is an example ofA) retention.B) self-insurance.C) insurance.D) noninsurance transfer.Answer: DQuestion Status: Previous Edition19) All of the following are disadvantages of noninsurance transfers EXCEPTA) The party to whom the potential loss is transferred may be unable to pay.B) The transfer may fail because the contract language is ambiguous.C) The only potential losses that can be transferred are those that are not commercially insurable.D) The noninsurance transfer may be costly.Answer: CQuestion Status: Previous Edition20) ABC Insurance retains the first $1 million of each property damage loss and purchases insurance for that part of any property loss that exceeds $1 million. The insurance for property losses above $1 million is calledA) excess insurance.B) liability insurance.C) coinsurance.D) primary insurance.Answer: AQuestion Status: Previous Edition21) Which of the following statements about the use of deductibles is (are) true?I. They represent risk retention by insurance purchasers.II. They tend to increase the cost of adjusting small claims.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition22) Which of the following statements about an excess insurance plan is true?A) The insurer does not participate in a loss until it exceeds the amount the firm has decided to retain.B) The insurer pays first up to some specified level; the insured then pays all losses exceeding the insurer's retention level.C) Losses in excess of a specified amount are not covered.D) The insured and insurer share equally in any loss that occurs.Answer: AQuestion Status: Previous Edition23) Factors a risk manager must consider in selecting an insurer include which of the following?I. The availability of risk management services.II. The financial strength of the insurer.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition24) An insurance policy specifically written and designed to meet the needs of an insurance purchaser is called a(n)A) manuscript policy.B) bureau policy.C) standard policy.D) excess policy.Answer: AQuestion Status: Previous Edition25) All of the following are disadvantages of using insurance in a risk management program EXCEPTA) There is an opportunity cost because premiums must be paid in advance.B) Considerable time and effort must be spent selecting and negotiating coverages.C) It results in considerable fluctuations in earnings after losses occur.D) Attitudes toward loss control may become lax when losses are insured. Answer: CQuestion Status: Revised26) Which of the following types of loss exposures may be appropriately handled through the purchase of insurance?I. High-frequency, low-severityII. Low-frequency, high-severityA) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition27) Which of the following types of loss exposures are best handled by the use of avoidance?A) low-frequency, low-severityB) low-frequency, high-severityC) high-frequency, low-severityD) high-frequency, high-severityAnswer: DQuestion Status: Previous Edition28) Low-frequency, low-severity loss exposures are best handled byA) avoidance.B) retention.C) insurance.D) noninsurance transfer.Answer: BQuestion Status: Previous Edition29) All of the following statements about the administration of a risk management program are true EXCEPTA) The risk manager is an important part of a firm's management team.B) A risk management policy statement can be used to educate top executives about the risk management process.C) If a risk management program is properly designed, periodic review of the program is unnecessary.D) In order to properly identify loss exposures, the risk manager needs the cooperation of other departments.Answer: CQuestion Status: Previous Edition30) Cal was just hired as XYZ Company's first risk manager. Cal would like to employ the risk management process. The first step in the process Cal should follow is toA) evaluate potential losses faced by XYZ Company.B) formulate a treatment plan for XYZ Company's loss exposures.C) identify potential losses faced by XYZ Company.D) implement and administer a risk management plan for XYZ Company. Answer: CQuestion Status: Previous Edition31) Members of Mid-South Petroleum Distributors, a trade group, had trouble obtaining affordable pollution liability insurance. The members formed a group captive that is exempt from many state laws that apply to other insurers. This group captive is called a(n)A) reinsurance pool.B) Lloyd's association.C) alien insurer.D) risk retention group.Answer: DQuestion Status: Previous Edition32) Acme Company has three identical manufacturing plants, one on the Texas Gulf Coast, one in southern Alabama, and one in Florida. Each plant is valued at $50 million. Acme's risk manager is concerned about the damage which could be caused by a single hurricane. The risk manager believes there is an extremely low probability that a single hurricane could destroy two or all three plants because they are located so far apart. What is the probable maximum loss associated with a single hurricane?A) $0 millionB) $50 millionC) $100 millionD) $150 millionAnswer: BQuestion Status: Previous Edition33) Acme Company has three identical manufacturing plants, one on the Texas Gulf Coast, one in southern Alabama, and one in Florida. Each plant is valued at $50 million. Acme's risk manager is concerned about the damage which could be caused by a single hurricane. The risk manager believes there is an extremely low probability that a single hurricane could destroy two or all three plants because they are located so far apart. What is the maximum possible loss associated with a single hurricane?A) $0 millionB) $50 millionC) $100 millionD) $150 millionAnswer: DQuestion Status: Previous Edition34) Laura Evans is risk manager of LMN Company. Laura decided to retain certain property losses. All of the following are methods which Laura can use to fund retained property losses EXCEPTA) private insurance.B) current net income.C) funded reserve.D) borrowed funds.Answer: AQuestion Status: Previous Edition35) Parker Department Stores has been hurt in recent months by a large increase in shoplifting losses. Parker's risk manager concluded that while the frequency of shoplifting losses was high, the severity is still relatively low. What is (are) the appropriate risk management technique(s) to apply to this problem?A) retentionB) loss control and retentionC) transfer through insuranceD) avoidanceAnswer: BQuestion Status: Previous Edition36) Barb, who is self-employed, is the main breadwinner for her family. Barb does not have disability income insurance because she has never stopped to consider the impact of a long-term disability upon her family. Barb's treatment of the risk of disability is best described asA) risk transfer.B) passive retention.C) risk avoidance.D) active retention.Answer: BQuestion Status: Previous Edition37) Ryan decided to review his personal risk management program. His car is 10years old, and he would receive little money from his insurer if the car was damaged or destroyed. Ryan decided to drop the physical damage insurance on the car. From a risk management perspective, dropping the physical damage insurance on the car is best described asA) increasing the use of avoidance in the risk management program.B) increasing the use of noninsurance transfer in the risk management program.C) increasing the use of retention in the risk management program.D) increasing the use of risk control in the risk management program. Answer: CQuestion Status: Previous Edition38) To better understand her company's operations, a risk manager asked a production manager to draw a diagram tracing the steps in the production and distribution of the company's products. Such a diagram, which is useful in risk identification, is called aA) financial statement.B) risk management matrix.C) flowchart.D) risk management audit.Answer: CQuestion Status: Previous Edition39) In reviewing his company's operations, a risk manager noticed that all of the company's finished goods were stored in a single warehouse. The risk manager recommended that the finished goods be divided among three warehouses to prevent all of the finished goods from being destroyed by the same peril. Dividing the finished goods among three warehouses illustratesA) risk avoidance.B) risk control.C) insurance.D) noninsurance transfer.Answer: BQuestion Status: Previous Edition40) Which of the following statements about a personal risk management program is (are) true?I. Insurance and retention are the only techniques used to handle potential losses.II. The steps in a personal risk management process are the same steps used by businesses.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition41) Bev lives in the suburbs and works downtown. She drives to work, and her most direct route to work would require her to pass through an area where carjackings and drive-by-shootings are common. Bev does not drive through this area. Instead, she uses a route which adds 10 minutes to her commute. Which risk management technique is Bev using with respect to the risk of injury while driving through the dangerous area?A) noninsurance transferB) avoidanceC) passive retentionD) loss reductionAnswer: BQuestion Status: Previous Edition42) Brenda identified all of the pure loss exposures her family faces. Then she analyzed these loss exposures, developed a plan to treat these risks, and implemented the plan. The process Brenda conducted is calledA) personal insurance programming.B) personal estate planning.C) personal financial planning.D) personal risk management.Answer: DQuestion Status: Previous Edition43) Which statement about a company's cost of risk is (are) true?I. Cost of risk includes insurance premiums and retained losses.II. Reducing the cost of risk increases profitability.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition44) A useful measure for an organization is the total of the organization's expenditures for treating loss exposures including retained losses, loss control expenses, insurance premiums, and other related expenses. This measure is called the organization'sA) cost of capital.B) cost of goods sold.C) cost of risk.D) cost of equity.Answer: CQuestion Status: Previous Edition45) Mark owns a 1998 sedan. The last time Mark renewed his auto insurance, he decided to drop the physical damage insurance on this vehicle. How is Markdealing with the auto physical damage exposure in his personal risk management program?A) risk transferB) passive retentionC) avoidanceD) planned retentionAnswer: DQuestion Status: Previous Edition46) Purchasing health insurance illustrates the use of which personal risk management technique?A) avoidanceB) risk transferC) loss controlD) risk retentionAnswer: BQuestion Status: Previous Edition47) Which of the following statements about captive insurance companies is (are) true?I. A captive insurance company established by a U.S. company must be domiciled in the United States.II. A captive insurance company may be owned by several parents.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition48) Which of the following is least likely to occur during a "hard" insurance market period?A) difficulty in obtaining insuranceB) tightening underwriting standardsC) higher insurer profitsD) increasing premiumsAnswer: CQuestion Status: New49) Which of the following statements concerning the selection of risk management techniques and insurance market conditions is true?I. It's easier to purchase affordable insurance during a "soft " market than duringa "hard" market.II. Retention is used more during a "soft" market than during a "hard" market.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: New。
瑞达rejda保险教材英文练习题
P r i n c i p l es of R i sk M a n a g em en t a n d I n su r a n c e,11e(R ej d a) Chapter 1 Risk in Our Society1) Traditionally, risk has been defined asA) any situation in which the probability of loss is one.B) any situation in which the probability of loss is zero.C) uncertainty concerning the occurrence of loss.D) the probability of a loss occurring.Answer: CQuestion Status: Previous Edition2) Objective risk is defined asA) the probability of loss.B) the relative variation of actual loss from expected loss.C) uncertainty based on a person's mental condition or state of mind.D) the cause of loss.Answer: BQuestion Status: Previous Edition3) An insurance company estimates its objective risk for 10,000 exposures to be 10 percent. Assuming the probability of loss remains the same, what would happen to the objective risk if the number of exposures were to increase to 1 million?A) It would decrease to 1 percent.B) It would decrease to 5 percent.C) It would remain the same.D) It would increase to 20 percent.Answer: AQuestion Status: Previous Edition4) Uncertainty based on a person's mental condition or state of mind is known asA) objective risk.B) subjective risk.C) objective probability.D) subjective probability.Answer: BQuestion Status: Previous Edition5) The long-run relative frequency of an event based on the assumption of an infinite number of observations with no change in the underlying conditions is calledA) objective probability.B) objective risk.C) subjective probability.D) subjective risk.Answer: AQuestion Status: Previous Edition6) Which of the following statements about a priori probabilities is correct?A) They are subjective probabilities based on ambiguity in the way probability is perceived.B) They are subjective probabilities that may vary among individuals because of factors such as age, gender, education, and the use of alcohol.C) They are objective probabilities that can be determined by deductive reasoning.D) They are objective probabilities that can be determined by subjective reasoning. Answer: CQuestion Status: Previous Edition7) An individual's personal estimate of the chance of loss isA) an objective probability.B) an objective risk.C) a subjective probability.D) an a priori probability.Answer: CQuestion Status: Previous Edition8) A peril isA) a moral hazard.B) the cause of a loss.C) a condition which increases the chance of a loss.D) the probability that a loss will occur.Answer: BQuestion Status: Previous Edition9) An earthquake is an example of aA) moral hazard.B) peril.C) physical hazard.D) objective risk.Answer: BQuestion Status: Previous Edition10) Dense fog that increases the chance of an automobile accident is an example of aA) speculative risk.B) peril.C) physical hazard.D) moral hazard.Answer: CQuestion Status: Previous Edition11) Faking an accident to collect insurance proceeds is an example of aA) physical hazard.B) objective risk.C) moral hazard.D) attitudinal hazard.Answer: CQuestion Status: Revised12) Carelessness or indifference to a loss is an example ofA) physical hazard.B) objective probability.C) moral hazard.D) attitudinal hazard.Answer: DQuestion Status: Revised13) Some characteristics of the judicial system and regulatory environment increase the frequency and severity of loss. This hazard is calledA) moral hazard.B) physical hazard.C) attitudinal hazard.D) legal hazard.Answer: DQuestion Status: Revised14) Taylor Tobacco Company is concerned that the company may be held liable in a court of law and ordered to pay a large damage award. The characteristics of the judicial system that increase the frequency and severity of losses are known asA) moral hazard.B) particular risk.C) speculative risk.D) legal hazard.Answer: DQuestion Status: Previous Edition15) A phrase that encompasses all of the major risks faced by a business firm isA) financial risk.B) speculative risk.C) enterprise risk.D) pure risk.Answer: CQuestion Status: Previous EditionI. Enterprise risk does not include financial risk.II. Financial risk is easily addressed through the purchase of insurance.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: DQuestion Status: Previous Edition17) All of the following are considered financial risks EXCEPTA) the decline in the value of a bond portfolio because of rising interest rates.B) increased cost of production because of rising commodity prices.C) loss of money because of adverse movements in currency exchange rates.D) destruction of a production facility caused by an explosion.Answer: DQuestion Status: Previous Edition18) Katelyn was just named Risk Manager of ABC Company. She has decided to create a risk management program which considers all of the risks faced by ABC-pure, speculative, operational, and strategic-in a single risk management program. Such a program is called a(n)A) financial risk management program.B) enterprise risk management program.C) fundamental risk management program.D) consequential risk management program.Answer: BQuestion Status: Previous Edition19) A pure risk is defined as a situation in which there isA) only the possibility of loss or no loss.B) only the possibility of profit.C) a possibility of neither profit nor loss.D) a possibility of either profit or loss.Answer: AQuestion Status: Previous Edition20) The premature death of an individual is an example of aA) pure risk.B) speculative risk.C) fundamental risk.D) physical hazard.Answer: AQuestion Status: Previous EditionA) They are almost always insurable by private insurers.B) They are more easily predictable than pure risks.C) They may benefit society even though a loss occurs.D) They involve only a chance of loss.Answer: CQuestion Status: Revised22) An automobile that is a total loss as a result of a collision is an example of which of the following types of risk?I. Speculative riskII. Diversifiable riskA) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Revised23) All of the following are programs to insure fundamental risks EXCEPTA) federally subsidized flood insurance.B) auto physical damage insurance.C) Social Security.D) unemployment insurance.Answer: BQuestion Status: Previous Edition24) All of the following are examples of personal risks EXCEPTA) poor health.B) unemployment.C) premature death.D) flood.Answer: DQuestion Status: Previous Edition25) Which of the following is a reason why premature death may result in economic insecurity?I. Additional expenses associated with death may be incurred.II. The income of the deceased person's family may be inadequate to meet its basic needs.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition26) Which of the following are often consequences of long-term disability?I. Continuing medical expensesII. Loss or reduction of employee benefitsA) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition27) All of the following are examples of direct property losses EXCEPTA) the theft of a person's jewelry.B) the destruction of a firm's manufacturing plant by an earthquake.C) the cost of renting a substitute vehicle while a collision-damaged car is being repaired.D) the vandalism of a person's automobile.Answer: CQuestion Status: Previous Edition28) The extra expense incurred by a business to stay in operation following a fire is an example of a(n)A) fundamental risk.B) speculative risk.C) direct loss.D) indirect loss.Answer: DQuestion Status: Previous Edition29) Which of the following statements about liability risks is (are) true?I. Future income and assets can be attached to pay judgments if inadequate insurance is carried.II. There is an upper limit on the amount of loss.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition30) All of the following are burdens to society because of the presence of risk EXCEPTA) The size of an emergency fund must be increased.B) Individuals may profit from accepting a speculative risk.C) Society is deprived of certain goods and services.D) Mental fear and worry are present.Answer: BQuestion Status: Previous Edition31) Loss control includes which of the following?I. Loss reductionII. Loss preventionA) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition32) Following good health habits can be categorized asA) loss prevention.B) risk retention.C) noninsurance transfer.D) personal insurance.Answer: AQuestion Status: Revised33) From the insured's perspective, the use of deductibles in insurance contracts is an example ofA) risk transfer.B) loss control.C) risk avoidance.D) risk retention.Answer: DQuestion Status: Previous Edition34) The use of fire-resistive materials when constructing a building is an example ofA) risk transfer.B) loss control.C) risk avoidance.D) risk retention.Answer: BQuestion Status: Previous Edition35) All of the following statements about risk retention are true EXCEPTA) It may be used intentionally if commercial insurance is unavailable.B) It may be used passively because of ignorance.C) Its use is most appropriate for low-frequency, high-severity types of risks.D) Its use results in cost savings if losses are less than the cost of insurance. Answer: CQuestion Status: Previous Edition36) All of the following are methods of noninsurance transfer EXCEPTA) entering into a hold-harmless agreement.B) avoiding dangerous activities.C) hedging risk using futures contracts.D) incorporating a business.Answer: BQuestion Status: Previous Edition37) Curt borrowed money from a bank to purchase a fishing boat. He purchased property insurance on the boat. Curt had difficulty making loan payments because he did not catch many fish, and fish prices were low. Curt intentionally sunk the boat, collected from his insurer, and paid off the loan balance. This scenario illustrates the problem ofA) adverse selection.B) moral hazard.C) nondiversifiable risk.D) attitudinal hazard.Answer: BQuestion Status: Revised38) Jenna opened a successful restaurant. One night, after the restaurant had closed, a fire started when the electrical system malfunctioned. In addition to the physical damage to the restaurant, Jenna also lost profits that could have been earned while the restaurant was closed for repairs. The lost profits are an example ofA) direct loss.B) nondiversifiable risk.C) speculative risk.D) indirect loss.Answer: DQuestion Status: Revised39) Brad started a pest control business. To protect his personal assets against liability arising out of the business, Brad incorporated the business. Brad's use of the corporate form of organization to shield against personal liability claims illustratesA) fundamental risk.B) noninsurance transfer.C) risk retention.D) objective risk.Answer: BQuestion Status: Previous Edition40) ABC Insurance Company plans to sell homeowners insurance in five Western states. ABC expects that 8 homeowners out of every 100, on average, will report claims each year. The variation between the rate of loss that ABC expects to occur and the rate of loss that actually does occur is calledA) objective probability.B) subjective probability.C) objective risk.D) subjective risk.Answer: CQuestion Status: Previous Edition41) Williams Company installed smoke detectors, a sprinkler system, and fire extinguishers in its new manufacturing facility. These devices are all examples ofA) loss control.B) noninsurance transfer.C) risk avoidance.D) risk retention.Answer: AQuestion Status: Previous Edition42) Tyndal Products Company produces cereal. The company has entered into contracts to deliver 500,000 boxes of cereal during the next 18 months. The company is concerned that the prices of two ingredients, corn and wheat, may increase over the next 18 months. The company used grain futures contracts to hedge the price risk associated with these commodities. Tyndal's use of hedging illustrates which risk management technique?A) noninsurance transferB) risk avoidanceC) risk retentionD) risk assumptionAnswer: AQuestion Status: Previous Edition43) Cathy's car hit a patch of ice on the road. The car skidded off the road and hit a tree. The presence of ice on the road is best described as a(n)A) peril.B) subjective risk.C) physical hazard.D) indirect loss.Answer: CQuestion Status: Previous Edition44) Jim and Paula Franklin started a dry cleaning business. The business may be successful or it may fail. The type of risk that is present when either a profit or loss could occur is calledA) pure risk.B) subjective risk.C) nondiversifiable risk.D) speculative risk.Answer: DQuestion Status: Revised45) Ben is concerned that if he injures someone or damages someone's property he could be held legally responsible and required to pay damages. This type of risk is called aA) speculative risk.B) liability risk.C) nondiversifiable risk.D) property risk.Answer: BQuestion Status: Revised46) MLX Drug Company would like to market a new hypertension drug. While the Food and Drug Administration (FDA) was testing the drug, it discovered that the drug produced a harmful side effect. When MLX learned of the FDA's test result, MLX abandoned its plan to produce and distribute the drug. MLX's reaction illustratesA) risk avoidance.B) hedging.C) risk transfer.D) risk retention.Answer: AQuestion Status: Previous Edition47) ABC Health Insurance Company sells health insurance in one state. Recently, that state's legislature passed a law forbidding health insurers from considering an individual's health history when selecting applicants to insure. This change in law will increase the possibility of unprofitable results for ABC. This type of hazard is an example ofA) physical hazard.B) legal hazard.C) moral hazard.D) attitudinal hazard.Answer: BQuestion Status: Revised48) All of the following are characteristics of the liability risk that most people face EXCEPTA) a lien may be placed on your income and assets to satisfy a legal judgment.B) substantial legal expenses may be incurred defending the claim.C) there is no upper limit on the amount of the loss.D) owning liability insurance eliminates the possibility of being held legally liable.Answer: DQuestion Status: Previous Edition49) Which of the following statements about chance of loss and risk is (are) true?I. If the chance of loss is identical for two groups, the objective risk must be the same.II. Two individuals may perceive differently the risk inherent in a given activity.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition50) A risk that affects only individuals or small groups and not the entire economy is called aA) diversifiable risk.B) pure risk.C) speculative risk.D) nondiversifiable risk.Answer: AQuestion Status: New51) All of the following are commercial risks EXCEPTA) the loss of business income.B) the risk of insufficient retirement income.C) the risk of being sued.D) the risk of property damage.Answer: BQuestion Status: New。
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瑞达Rejda保险教材英文练习题089风险管理和保险原则，11e (Rejda)第8章政府对保险的监管1)监管保险的原因包括以下哪一项？一、保持保险公司偿付能力。
二。
确保合理的费率。
答)一只B)二只C)一只和二只都不是D)一只和二只都不是答案:C问题状态:前一版2)各州管理保险业务的权利首先是由A)东南保险商协会案确立的。
保罗诉弗吉尼亚。
C)金融现代化法案。
《谢尔曼法案》。
回答:B9问题状态:上一版3)当前国家保险监管的基础是A)麦卡兰-弗格森法案。
保罗诉弗吉尼亚。
C)东南保险商协会案。
D)全国保险专员协会。
答:答9问题状态:上一版4)以下所有关于保险监管方法的陈述都是真实的，除了答:所有州都有监管保险公司运营的保险法。
保险公司完全不受联邦机构和法律的监管。
C)法院以多种方式监管保险，包括对保单条款和规定的解释。
D)州保险专员通过行政裁决，对在其州开展业务的保险公司拥有相当大的权力。
回答:B问题状态:上一版1版权所有？2011培生教育有限公司5)以下关于保险公司许可的陈述中哪一项是正确的？一、新的股本保险公司必须满足最低资本和盈余要求，这些要求因州和保险类别而异。
2。
对保险公司的许可要求没有对大多数其他类型的公司那么严格。
答:我只有B) II只有c)I和II都没有D)I和II都没有回答:A问题状态:以前的版本6)一家在另一个州注册的保险公司已经被许可在您的州经营。
在你所在的州，该保险公司将被视为未承保的保险公司。
b)外国保险公司。
c)外国保险公司。
D)互惠保险人。
回答:B9问题状态:上一版7)一家在另一个国家注册的保险公司已经获得在你所在州经营的许可。
在你所在的州，该保险公司将被视为未承保的保险公司。
b)外国保险公司。
c)外国保险公司。
D)互惠保险人。
回答:C9问题状态:早期版本8)以下哪一项被视为保险人的非认可资产？A)现金B)优先股C)房地产D)办公家具回答:D问题状态:上一版9)保险人的保单持有人盈余被定义为其A)资产与负债之间的差额。
B)保费收入及其支出。
c)准备金及其负债。
D)资产及其非转让资产。
答:问题状态:上一版2版权所有？2011年培生教育公司10)以下关于使用基于风险的资本要求的陈述中哪一项是正确的？I。
根据投资和保险业务的风险，保险公司必须有一定的资本。
2。
根据相对于基于风险的资本要求，保险公司可能需要采取某些行动。
答)我只B)我只C)我和我都不D)我和我都不回答:C问题状态:以前的版本11)下列关于保险公司投资监管的陈述中哪一项是正确的？I。
监管保险公司投资的目的是防止保险公司做出可能威胁其解决方案的不合理投资。
人寿保险公司可以将其无限量的资产投资于普通股。
答:我只B)我只C)我和我都不D)我和我都不回答:答:问题状态:上一版12)以下关于寿险公司监管的陈述中哪一项是正确的？I。
人寿保险公司可投资于特定类型资产(如股票或债券)的资产百分比通常受法律限制。
2。
限制盈余积累的目的是防止保险公司以保单持有人红利为代价增加盈余。
答:我只B)我只C)我和我都不D)我和我都不回答:C问题状态:上一版13)下列关于国家保险保证基金的陈述中哪一项是正确的？它们限制了保险公司资不抵债时投保人可以收取的金额。
二。
它们通常由各州的一般收入资助。
答)我只有B)我只有C)我和我都没有D)我和我都没有回答:答问题状态:上一版3版权所有？2011年培生教育有限公司14)根据一种利率法规，保险公司不需要向州保险部门申报其利率。
然而，保险公司可能需要向州政府官员提供费率表和9支持数据。
这种评级法的一个基本假设是，市场力量将决定保险的价格和可用性，而不是监管者的自由裁量行为。
这种类型的利率监管被称为A)弹性评级法。
b)事先批准法。
c)文件和使用法。
d)不需要归档。
回答:D9问题状态:修订15)如果费率变化超过指定的预定范围，在使用费率之前，保险公司需要获得哪种费率法规的批准？通过歪曲真实的事实，格雷琴能够说服一个客户放弃另一家公司的人寿保险9保单，并从格雷琴所代表的公司购买一份保单。
格雷琴从事了一项被称为“诱饵和交换”的非法销售活动。
b)重铺。
c)报复。
d)扭曲。
回答:D9问题状态:上一版17)下列关于保费税收的陈述中哪一项是正确的？I。
根据麦卡兰-弗格森法案，它们由联邦政府征收。
二。
他们的主要目的是为保险监管提供资金。
答)我只有B) II只有C)我和II都没有D)我和II都没有回答:D问题状态:上一版4版权所有？2011年培生教育有限公司18)联邦保险监管支持者提到的优势包括以下所有方面，除了A)更高的效率。
B)更大的创新机会。
c)法律的统一性。
D)更有能力的监管者。
回答:B9问题状态:前一版19)国家保险监管的支持者所引用的优势包括以下所有内容，除了A)NAIC法律的统一性。
b)更大的创新机会。
c)更好地满足当地需求。
d)政治权力的集中。
回答:D9问题状态:前一版20)国会委员会和总审计局发现的州保险监管的缺点包括以下所有方面，除了A)对消费者的保护不足。
B)市场行为检查不充分。
c)无法应对当地独特的需求。
D)监管机构对保险业反应过度。
答:C9问题状态:早期版本21)保险公司破产的主要原因包括以下哪一项？一、定价和损失准备金不足。
二。
快速增长和盈余不足。
A)仅适用于B)仅适用于II) C)同时适用于I)和II D)不适用于I)或II)答案:C问题状态:上一版22)确保保险公司偿付能力的主要方法包括以下所有方法，但不包括A)证券交易委员会对投资的监督。
b)基于风险的资本标准。
c)现场检查。
D)审查要求的年度财务报表。
答:问题状态:上一版5版权所有？2011年皮尔逊教育公司23)以下哪一项是废除麦卡伦-弗格森法案的论据？这将使小型保险公司更容易竞争。
它将鼓励信息共享。
C)这将使开发通用覆盖表单变得更加容易。
它将纠正州法规中的缺陷。
回答:D9问题现状:上一版24)在Z州经营的产权保险公司数量相对较少。
最近，这些公司中最大的公司(50%的市场份额)收购了第二大公司(30%的市场份额)。
收购后，保险公司立即将保费提高了75%。
这种情况说明了保险监管的下列哪些理由？A)维持保险公司的偿付能力B)弥补消费者知识的不足C)确保合理的费率D)提供保险答案:C问题状态:以前的版本25)在以下哪一项中，法院裁定保险是州际商业，当跨州经营时，因此受联邦法规管辖？A)保罗诉弗吉尼亚B)东南保险商协会案C)麦卡兰-弗格森法案D)金融现代化法案答案:B9问题状态:上一版26)一家总部设在加拿大的人寿保险公司获准在马萨诸塞州经营。
在马萨诸塞州经营时，加拿大保险公司将被视为国内保险公司。
b)专属自保保险人。
外国保险公司。
d)外国保险公司。
回答:D9问题状态:上一版27) XYZ互助保险公司总资产为1000万美元。
投保人的盈余是200万美元。
XYZ互惠银行的总负债是多少？答)400万美元B)800万美元C)1000万美元D)1200万美元答案:B问题状态:上一版69版权所有？2011年培生教育公司28)共同财产保险公司有200万美元的盈余。
根据保守的经验法则，共有财产保险公司可以安全地计算出多少新的净保费？答)200万美元B)800万美元C)1000万美元D)2000万美元答案:答9问题状态:上一版29)夜间飞行保险公司的损失比预测的要大得多。
该公司没有收取足够的保费，也没有购买再保险。
如果夜飞公司资不抵债，以下哪一项将有助于支付保险公司的未付索赔？A)担保基金B)保费回扣C)基于风险的资本D)认可的资产答案:A9问题状态:上一版30)格蕾丝是人寿保险代理人。
她正试图出售一份大额人寿保险单，但潜在的购买者正在重新考虑。
为了说服潜在的购买者，格雷斯说，如果你购买该保单，你将获得的佣金。
\如果她与购买者分享佣金呢？答:9问题状态:上一版31)X州的保费税率为2%。
Y州的保费税率是3%。
X州的保险公司必须为在Y州承保的业务支付3%的税率。
X州要求Y州的保险公司为在X州承保的业务支付3%的保费，尽管在X州保费税率仅为2%。
这种做法被称为A)税则。
B)担保基金评估。
c)基于风险的资本要求。
d)报复性税法。
回答:D 问题状态:上一版7版权所有？2011年培生教育有限公司32)美国广播公司保险公司想收购一家银行。
多年来，联邦法律不允许美国广播公司从事银行业务。
下列哪一项法令取消了禁止银行、保险公司和投资公司进入对方市场的禁令？A)麦克卡伦-弗格森法案B)税收改革法案C)综合综合预算调节法案D)金融现代化法案(格拉姆-利奇-布利利法案)回答:D9问题状态:前一版33)根据一种类型的评级法，保险公司可以自由更改费率并立即使用修改后的费率9。
但是，新的利率必须在规定的期限内提交给监管机构，例如在采用修改后的利率后60天。
这种评级法被称为A)事先批准。
b)文件和使用。
c)使用和归档。
d)弹性额定值。
答:C9问题状态:上一版34)保险公司在影响消费者的领域中的监管，包括索赔处理、承保、投诉、广告、销售惯例和其他贸易惯例，称为A)偿付能力监督。
b)市场行为监管。
c)组合比率分析。
d)市场份额监管。
回答:B9问题状态:上一版35)全国保险专员协会(NAIC)管理一个\9警告系统\年度报表以识别可能构成偿付能力风险的公司。
这种预警系统被称为A)基于风险的资本要求。
b)保险保证基金。
C)保险监管信息系统(IRIS)的评估方法。
回答:C问题状态:上一版8版权所有？2011年培生教育公司36)关于保险监管的质量，下列哪项陈述是正确的？保险监管的质量在各州是统一的。
2。
所有证据表明，联邦保险监管将提高监管质量。
答)我只有B) II 只有C)我和II都没有D)我和II都没有回答:D问题状态:以前的版本37)以下关于人寿保险公司的可选联邦宪章的陈述中哪一项是正确的？I。
在许多州经营的大型保险公司更可能选择州特许经营，而较小的区域性保险公司更可能选择联邦特许经营。
2。
联邦宪章的支持者认为这将加速新产品的开发和批准。
答:我只B)我只C)我和我都不D)我和我都不回答:B问题状态:以前的版本38)以下所有方法都有助于确保保险公司的偿付能力，除了A)商业线路放松管制B)基于风险的资本标准。
C)NAIC预警系统。
NAIC的快速筛查系统。
答:问题状态:上一版39)从个人信用历史和其他因素得出的分数，被许多汽车和房屋保险公司用于承保和评级财产，称为(n) A) CLUE分数。
b)保险分数。
c)费用比率得分。
d)综合比率得分。
回答:B问题状态:上一版9版权所有？2011年培生教育公司40)以下所有论点都支持在个人额度承销中使用申请人的信用记录，但A除外)当信用历史被用作评级因素时，大多数消费者有良好的信用记录并从中受益。
B)在承销或评级中使用信用数据会歧视某些群体。