ATI PN MANAGEMENT EXAM 2019 FORM A/ ACTUAL QUESTIONS
AND VERIFIED ANSWERS WITH LATEST UPDATES 2026.
It is the distribution of successes of funds accumulated by the insurer and
participating policies. - ANSWER: Which of the following statements
regarding a life insurance policy Dividened is true?
Losses due to fraud are eliminated. - ANSWER: Which of the following is not
a benefit of insurance?
Participating - ANSWER: John owns an insurance policy that gives him the
right to share and the insurer's surplus. What kind of policy is this?
Contract that allows the policy owner to receive a share surplus in the
form of policy dividends. - ANSWER: What is the participating life insurance
policy?
Marketing - ANSWER: One important function of an insurance company is to
identify and sell potential customers which of these BEST describes this
function?
Mutual Insurer - ANSWER: An insurer on by its policyholders is called a
Demutualization - ANSWER: When a mutual insurer becomes a stock
company the process is called?
Increases the unknown premium reserve - ANSWER: Which is not a
characteristic for reinsurance?
Capitive insurer - ANSWER: Which of the following is an insurer established
by a parent company for the purpose of ensuring the parent companies
loss exposures?
Risk is eliminated - ANSWER: Which of the following is a type of insurance
where an insurer transfer loss exposures from written for it's insureds?
The greater the number insured the more accurately than sure can predict
losses and set appropriate premiums - ANSWER: And insured having a
large number of similar exposure unit it's considered important because.
Speculative risk - ANSWER: Which of the following is a situation where
there is a possibility of either lost or a gain?
Per risk is the only insurable risk - ANSWER: Which of these statements
correctly describes risk?
Probability that an event will occur - ANSWER: Which of the following is not
considered to be a definition of the term "loss"?
Lost must be castastrophic - ANSWER: Which of the following is not an
element of an insurable risk?
,A condition that may increase the likelihood of a loss occurring. - ANSWER:
A hazard can be best described as.
Moral Hazard - ANSWER: Which of the following describes the increase in
the probability of a loss due to ensure it's dishonest tendencies?
Increased chance of lost because of an insurance this honest tendencies. -
ANSWER: Moral hazard is described as the
Loss Exposure - ANSWER: Which of the following is considered to be any
situation that has the potential for loss?
Principle of indemnity - ANSWER: Restoring an insured to the same
condition as before a loss is known as.
Law of Large Numbers - ANSWER: Which of the following best describes
the statement? "the more times and event is repeating, the more
predicting the outcome becomes?"
Probability of loss is a unknown - ANSWER: All of the following is a
circumstance must be met for loss retention to be an effective risk
management technique except?
Pure Risk - ANSWER: A situation in which there is only a chance of loss or
no loss is a?
Probability of loss - ANSWER: Which of the following is not required in the
content of a policy?
indemnity - ANSWER: Restoring and insured to the same condition as
before a loss is an example of the principal of?
Equal consideration is required between the involved parties - ANSWER:
Which of the following is not a requirement of a contract?
Rescind a policy - ANSWER: If a material warranty violation on the part of
the insurance is found, what recourse does an insurer have?
One party is restored to the same financial position the party was in
before the loss occurred - ANSWER: Which of the following statements
correctly describes a contract of indemnity?
Indemnity - ANSWER: Reasonably necessarily as a currently described with
the statement " insureds are entitled to recover and amount not greater
than the amount of the lights? "
A contract may be accepted/rejected by the insured - ANSWER: Which
statement is correct when describing a contract adhesion?
Only one party (the insurer) makes any kind of legally enforceable
promise. - ANSWER: And unliteral contract is one which?
An offer and acceptance of the contract terms - ANSWER: A contract
requires.
, Make whole - ANSWER: What does the insurance term "indemnity" referred
to?
The insured and insured contribution equally to the contract. - ANSWER:
Which of the following statements about aleatory contract is not true?
Materiality of concealment - ANSWER: The importance of a representation
is demonstrated in what rule?
Fiduciary - ANSWER: When handling premiums for insurance, and each and
is acting in which capacity?
Rescinding the contract - ANSWER: Which course of action is ensuring title
II when deliberate concealment is committed by the insured?
The policy's face amount - ANSWER: And a life insurance policies limit of
liability would be.
Require a high premium payable at each renewal - ANSWER: In a renewable
term life insurance policy the contract will usually.
Decreasing term - ANSWER: Which of the following type of life insurance is
normally associated with a mortgage loan?
Non-medical - ANSWER: Which of the following is a life insurance policy
that does not require a physical exam?
Mortgage Redemption - ANSWER: Scott has just purchased a new house. He
is now shopping for a life insurance policy that provides a death benefit
that matches the protecting a death benefit that matches the project is
outstanding debt of his mortgage. Which live policy would best suit his
needs?
Only children born to policies insue date maybe including - ANSWER: Which
of the following statements do not apply to child coverage in a family
policy?
Modified Endowment Contract (MEC) - ANSWER: And insurance policy
Braden after 1988 the fails to pass to seven- pay test is known as.
Verbal Life - ANSWER: An insurance policy where the insured can choose
where the cash value can be invested is called
Applicants are not requested to answer medical questions on the
application - ANSWER: Which of the following is not a true description of a
non-medical life insurance?
Joint Life Policy - ANSWER: Tom is shopping for a policy that covers two
people I will pay the face amount ONLY when the first person dies the type
of life policy he is looking for is called a period
AND VERIFIED ANSWERS WITH LATEST UPDATES 2026.
It is the distribution of successes of funds accumulated by the insurer and
participating policies. - ANSWER: Which of the following statements
regarding a life insurance policy Dividened is true?
Losses due to fraud are eliminated. - ANSWER: Which of the following is not
a benefit of insurance?
Participating - ANSWER: John owns an insurance policy that gives him the
right to share and the insurer's surplus. What kind of policy is this?
Contract that allows the policy owner to receive a share surplus in the
form of policy dividends. - ANSWER: What is the participating life insurance
policy?
Marketing - ANSWER: One important function of an insurance company is to
identify and sell potential customers which of these BEST describes this
function?
Mutual Insurer - ANSWER: An insurer on by its policyholders is called a
Demutualization - ANSWER: When a mutual insurer becomes a stock
company the process is called?
Increases the unknown premium reserve - ANSWER: Which is not a
characteristic for reinsurance?
Capitive insurer - ANSWER: Which of the following is an insurer established
by a parent company for the purpose of ensuring the parent companies
loss exposures?
Risk is eliminated - ANSWER: Which of the following is a type of insurance
where an insurer transfer loss exposures from written for it's insureds?
The greater the number insured the more accurately than sure can predict
losses and set appropriate premiums - ANSWER: And insured having a
large number of similar exposure unit it's considered important because.
Speculative risk - ANSWER: Which of the following is a situation where
there is a possibility of either lost or a gain?
Per risk is the only insurable risk - ANSWER: Which of these statements
correctly describes risk?
Probability that an event will occur - ANSWER: Which of the following is not
considered to be a definition of the term "loss"?
Lost must be castastrophic - ANSWER: Which of the following is not an
element of an insurable risk?
,A condition that may increase the likelihood of a loss occurring. - ANSWER:
A hazard can be best described as.
Moral Hazard - ANSWER: Which of the following describes the increase in
the probability of a loss due to ensure it's dishonest tendencies?
Increased chance of lost because of an insurance this honest tendencies. -
ANSWER: Moral hazard is described as the
Loss Exposure - ANSWER: Which of the following is considered to be any
situation that has the potential for loss?
Principle of indemnity - ANSWER: Restoring an insured to the same
condition as before a loss is known as.
Law of Large Numbers - ANSWER: Which of the following best describes
the statement? "the more times and event is repeating, the more
predicting the outcome becomes?"
Probability of loss is a unknown - ANSWER: All of the following is a
circumstance must be met for loss retention to be an effective risk
management technique except?
Pure Risk - ANSWER: A situation in which there is only a chance of loss or
no loss is a?
Probability of loss - ANSWER: Which of the following is not required in the
content of a policy?
indemnity - ANSWER: Restoring and insured to the same condition as
before a loss is an example of the principal of?
Equal consideration is required between the involved parties - ANSWER:
Which of the following is not a requirement of a contract?
Rescind a policy - ANSWER: If a material warranty violation on the part of
the insurance is found, what recourse does an insurer have?
One party is restored to the same financial position the party was in
before the loss occurred - ANSWER: Which of the following statements
correctly describes a contract of indemnity?
Indemnity - ANSWER: Reasonably necessarily as a currently described with
the statement " insureds are entitled to recover and amount not greater
than the amount of the lights? "
A contract may be accepted/rejected by the insured - ANSWER: Which
statement is correct when describing a contract adhesion?
Only one party (the insurer) makes any kind of legally enforceable
promise. - ANSWER: And unliteral contract is one which?
An offer and acceptance of the contract terms - ANSWER: A contract
requires.
, Make whole - ANSWER: What does the insurance term "indemnity" referred
to?
The insured and insured contribution equally to the contract. - ANSWER:
Which of the following statements about aleatory contract is not true?
Materiality of concealment - ANSWER: The importance of a representation
is demonstrated in what rule?
Fiduciary - ANSWER: When handling premiums for insurance, and each and
is acting in which capacity?
Rescinding the contract - ANSWER: Which course of action is ensuring title
II when deliberate concealment is committed by the insured?
The policy's face amount - ANSWER: And a life insurance policies limit of
liability would be.
Require a high premium payable at each renewal - ANSWER: In a renewable
term life insurance policy the contract will usually.
Decreasing term - ANSWER: Which of the following type of life insurance is
normally associated with a mortgage loan?
Non-medical - ANSWER: Which of the following is a life insurance policy
that does not require a physical exam?
Mortgage Redemption - ANSWER: Scott has just purchased a new house. He
is now shopping for a life insurance policy that provides a death benefit
that matches the protecting a death benefit that matches the project is
outstanding debt of his mortgage. Which live policy would best suit his
needs?
Only children born to policies insue date maybe including - ANSWER: Which
of the following statements do not apply to child coverage in a family
policy?
Modified Endowment Contract (MEC) - ANSWER: And insurance policy
Braden after 1988 the fails to pass to seven- pay test is known as.
Verbal Life - ANSWER: An insurance policy where the insured can choose
where the cash value can be invested is called
Applicants are not requested to answer medical questions on the
application - ANSWER: Which of the following is not a true description of a
non-medical life insurance?
Joint Life Policy - ANSWER: Tom is shopping for a policy that covers two
people I will pay the face amount ONLY when the first person dies the type
of life policy he is looking for is called a period
