HSM546 Week 5 Practice Quiz Records Copy
п»їHSM546 Week 5 Practice Quiz Records
NOTE: A great asterisk (*) denotes the right answer.
1 ) Which with the following transactions about share insurers applies?
a. They will issue assessable policies.
n. They are certainly not permitted to write property and liability insurance. *c. Stockholders bear virtually any losses and promote in any profits.
d. They are owned by their policyowners who also participate in earnings but not in losses.
2 . Which from the following assertions about mutual insurers is valid? a. They may be legally arranged as relationships.
b. They have a board of directors which is selected simply by state insurance departments. c. They are possessed by their stockholders.
*d. They may pay plan dividends or give level reductions beforehand.
3. Why are some mutual insurers termed as " evaluation mutualsвЂќ? a. They impose low premiums because the damage exposures with their insureds are thoroughly evaluated before an insurance policy is written. b. They can be noted to be very comprehensive in their assessment of investment opportunities. c. They are evaluated for state premium fees only if they make a profit. *d. They can examine policyowners in the event that premiums happen to be insufficient to pay deficits and expenditures.
4. Which of the next statements about factory mutuals is true? a. They publish insurance generally for small factories.
*b. They place great focus on loss elimination.
c. They will issue procedures providing limited coverage and coinsurance is practically always applied. d. They charge first premiums which can be inadequate to pay anticipated claims, and after that assess policyowners for additional cash as needed.