ARe 320 - Serving the Reinsurance Customer || A+ Certified.
broker marketing system correct answers a reinsurance marketing system in which a reinsurance
intermediary brokers the reinsurance transaction between the primary insurer and reinsurer(s)
brokerage correct answers compensation in the form of a flat fee or a commission that is paid by
the reinsurer to the reinsurance intermediary for services provided
Lloyd's property first lost scale correct answers a scale used to allocate premium between a
primary and an excess layer
authorization correct answers the reinsurer's offer to reinsure the loss exposure at a certain
premium and under specific terms and conditions
confirmation correct answers the primary insurer's acceptance of the facultative reinsurer's
authorization
lead reinsurer correct answers the reinsurer that negotiates the treaty terms and that generally
assumes a significant share of the treaty's liability
following reinsurers correct answers reinsurers that take a percentage of the treaty's liability on
the same terms and conditions as the lead reinsurer
policyholders' surplus correct answers under statutory accounting principles (SAP), an insurer's
total admitted assets minus its total liabilities
amortized value correct answers a value that reflects the payment of principal and interest over
time
liquidity risk correct answers the risk that an asset cannot be sold on short notice without
incurring a loss
treasury stock correct answers a corporate stock issued as fully paid to a stockholder and
subsequently reacquired by the corporation to use for business puprposes
Schedule F correct answers the NAIC Annual Statement Schedule that shows specific
information about ceded and assumed reinsurance, as well as portfolio transfers.
loss adjustment expense (LAE) correct answers the expense that an insurer incurs to investigate,
defend, and settle claims according to the terms specified in the insurance policy
certified reinsurer correct answers an unauthorized reinsurer that meets certain qualifications and
is approved by the state insurance regulator of the ceding company's state of domicile
incurred but not reported (IBNR) reserves correct answers a reserve established for losses that
reasonably can be assumed to have been incurred but not yet reported
, Schedule P correct answers the NAIC annual statement schedule that shows the detailed
historical information on paid and reserved losses and LAE
real property (realty) correct answers tangible property consisting of land, all structures,
permanently attached to the land, and whatever is growing on the land
personal property correct answers all tangible or intangible property that is not real property
property loss exposure correct answers a condition that presents the possibility that a person or
an organization will sustain a loss resulting from damage (including destruction, taking, or loss
of use) to property in which that person or organization has a financial interest
fixture correct answers any personal property affixed to real property in such a way as to become
part of the real property
money correct answers currency, coins, bank notes, and sometimes traveler's checks, credit card
slips, and money orders held for sale to the public
securities correct answers written instruments representing either money or other property, such
as stocks and bonds
auto correct answers as defined in commercial general liability and auto forms, a land motor
vehicle, trailer, or semitrailer designed for travel on public roads, including attached machinery
or equipment; or any other land vehicle that is subject to a compulsory or financial responsibility
law or other motor vehicle insurance law in the state where it is licensed or principally garaged
mobile equipment correct answers various types of vehicles designed for use principally off
public roads, such as bulldozers and cranes
recreational vehicle correct answers a vehicle used for sports and recreational activities, such as a
dune buggy, all-terrain vehicle, or dirt bike
peril correct answers the cause of a loss
replacement cost correct answers the cost to repair or replace property using new materials of
like kind and quality with no deduction for depreciation
actual cash value (ACV) correct answers the cost to replace property with the new property of
like kind and quality less depreciation
agreed value method correct answers a method of valuing property in which the insurer and the
insured agree, at the time the policy is written, on the maximum amount that will be paid in the
event of a total los
bailee correct answers the party temporarily possessing the personal property in a bailment
broker marketing system correct answers a reinsurance marketing system in which a reinsurance
intermediary brokers the reinsurance transaction between the primary insurer and reinsurer(s)
brokerage correct answers compensation in the form of a flat fee or a commission that is paid by
the reinsurer to the reinsurance intermediary for services provided
Lloyd's property first lost scale correct answers a scale used to allocate premium between a
primary and an excess layer
authorization correct answers the reinsurer's offer to reinsure the loss exposure at a certain
premium and under specific terms and conditions
confirmation correct answers the primary insurer's acceptance of the facultative reinsurer's
authorization
lead reinsurer correct answers the reinsurer that negotiates the treaty terms and that generally
assumes a significant share of the treaty's liability
following reinsurers correct answers reinsurers that take a percentage of the treaty's liability on
the same terms and conditions as the lead reinsurer
policyholders' surplus correct answers under statutory accounting principles (SAP), an insurer's
total admitted assets minus its total liabilities
amortized value correct answers a value that reflects the payment of principal and interest over
time
liquidity risk correct answers the risk that an asset cannot be sold on short notice without
incurring a loss
treasury stock correct answers a corporate stock issued as fully paid to a stockholder and
subsequently reacquired by the corporation to use for business puprposes
Schedule F correct answers the NAIC Annual Statement Schedule that shows specific
information about ceded and assumed reinsurance, as well as portfolio transfers.
loss adjustment expense (LAE) correct answers the expense that an insurer incurs to investigate,
defend, and settle claims according to the terms specified in the insurance policy
certified reinsurer correct answers an unauthorized reinsurer that meets certain qualifications and
is approved by the state insurance regulator of the ceding company's state of domicile
incurred but not reported (IBNR) reserves correct answers a reserve established for losses that
reasonably can be assumed to have been incurred but not yet reported
, Schedule P correct answers the NAIC annual statement schedule that shows the detailed
historical information on paid and reserved losses and LAE
real property (realty) correct answers tangible property consisting of land, all structures,
permanently attached to the land, and whatever is growing on the land
personal property correct answers all tangible or intangible property that is not real property
property loss exposure correct answers a condition that presents the possibility that a person or
an organization will sustain a loss resulting from damage (including destruction, taking, or loss
of use) to property in which that person or organization has a financial interest
fixture correct answers any personal property affixed to real property in such a way as to become
part of the real property
money correct answers currency, coins, bank notes, and sometimes traveler's checks, credit card
slips, and money orders held for sale to the public
securities correct answers written instruments representing either money or other property, such
as stocks and bonds
auto correct answers as defined in commercial general liability and auto forms, a land motor
vehicle, trailer, or semitrailer designed for travel on public roads, including attached machinery
or equipment; or any other land vehicle that is subject to a compulsory or financial responsibility
law or other motor vehicle insurance law in the state where it is licensed or principally garaged
mobile equipment correct answers various types of vehicles designed for use principally off
public roads, such as bulldozers and cranes
recreational vehicle correct answers a vehicle used for sports and recreational activities, such as a
dune buggy, all-terrain vehicle, or dirt bike
peril correct answers the cause of a loss
replacement cost correct answers the cost to repair or replace property using new materials of
like kind and quality with no deduction for depreciation
actual cash value (ACV) correct answers the cost to replace property with the new property of
like kind and quality less depreciation
agreed value method correct answers a method of valuing property in which the insurer and the
insured agree, at the time the policy is written, on the maximum amount that will be paid in the
event of a total los
bailee correct answers the party temporarily possessing the personal property in a bailment
