Risk Global Chapter 4

Which of the following factor least likely be considered when making insurance company selection?

Which of the following is not a ratio measure used by NAIC to put the insurer in watchlist?

Risk arising from underestimating risk from existing insurance policy or not properly pricing premium to be charged refer to

Which of the following is most likely refer to know about the insurance company’s persistency?

Which of the following factors will most likely be considered while selecting an insurance company?

Which of the following statement is correct? Statement 1: An insurance agent is a legal representative of one or more insurers. Statement 2: An insurance advisor is not legally bound to any company.

Which of the following factor least likely considered while selecting an insurance advisor?

“—-is the authority with property and liability agents to handle minor claims in the office without having to go through a long adjustment process.

Which of the following is least likely a recommendation to avoid misunderstanding between agent and client?

Which type of policy is most suitable for client wants predictable cost with a finite need and displays good saving and investing habits?

Which type of policy is most suitable for Client has a need that decreases annually over a predetermined period of time?

Which type of policy Can be used when a client wants predictability and guarantees regarding cost death benefit and cash accumulations?

Which type of policy is most suitable for Client wants the premium and minimum death benefit predictability of whole life is not risk averse and wants to participate in the equity/bond market

Which type of policy is most suitable for Client wants lifetime coverage wants flexibility of premiums does not want to participate in the equity/bond market and is willing to accept uncertainty about cash values

Which type of policy is most suitable for Client is not risk averse likes the idea of buying term and investing the difference or participating in the equity/bond market and needs long-term insurance coverage

The insurer has the power to draft the contract while the potential policyholder only has the right of refusal and he/she cannot counter the offer or create a new contract for the insurer to agree to. Which characteristic of insurance policy is referred:

Which property of insurance contract refer here: After the insured pays one relatively small premium for a life insurance policy the insurer is required to pay a large claim on the death of the insured.

All the authority rests with the insurer. Partly as a result it is the insurer alone that can be forced to honour contract terms. This is another way of saying insurance contracts

It is not an authority the agent actually possesses. Instead it is the appearance of having authority to do something based on the actions of the agent and perhaps actions of the insurer. What type of authority is this?

Which of the following statement is correct? Statement 1: The acts of the agent can and often do legally bind the insurer. Statement 2: The policy owner necessarily needs to be the insured under policy

Why regulations are necessary in insurance industry?