CPCU 520 Final Review UPDATED ACTUAL Questions And Correct Answers
C
Terms in this set (35)
Which one of the following statements is correct An insurer should expect at least some minimum rate of return on the equity
regarding rate regulation invested in its insurance operations.
Which one of the following statements is true regarding They are regulated through legislation.
insurance policies?
When adjusting a property loss, a claim representative Special form coverage
must determine whether or not the loss was caused by a
covered peril. Insurance that covers every cause of direct
physical loss or damage that is not specifically excluded
is referred to as
Which one of the following statements is correct with Charges to increase commercial liability insurance limits frequently exceed 100
respect to increased limits above the basic coverage percent of the charge for basic coverage limits.
limits?
Which one of the following statements is true regarding Trending of losses in fire insurance is generally restricted to claim severity.
ratemaking in different types of insurance?
Which one of the following statements is true regarding The loss ratio ratemaking method cannot be used to determine rates for a new
insurance ratemaking methods? type of insurance.
Which one of the following types of reinsurance is Pro rata
generally chosen by newly incorporated insurers or
insurers with limited capital because it is effective in
providing surplus relief?
Per risk excess of loss reinsurance covers Property insurance and applies separately to each loss occurring to each risk.
Which one of the following statements is correct Reinsurance intermediaries can often help secure high coverage limits and
regarding the available sources of reinsurance? catastrophe coverage.
Which one of the following is correct with regard to an An insurer's line is influenced by the maximum amount of insurance or limit of
insurer's line and large-line capacity? liability allowed by insurance regulations.
Under a per policy excess of loss treaty, the attachment Separately to each insurance policy regardless of the number of losses occurring
point and the reinsurance limit apply under each policy.
To be successful, the differentiation business-level Accurately determine customers' preferences to develop products perceived as
strategy must distinctive.
Which one of the following statements is correct with Data used in developing insurance rates for basic coverage limits include only
respect to increased limits factors in liability insurance? losses associated with the basic coverage limit.
C
Terms in this set (35)
Which one of the following statements is correct An insurer should expect at least some minimum rate of return on the equity
regarding rate regulation invested in its insurance operations.
Which one of the following statements is true regarding They are regulated through legislation.
insurance policies?
When adjusting a property loss, a claim representative Special form coverage
must determine whether or not the loss was caused by a
covered peril. Insurance that covers every cause of direct
physical loss or damage that is not specifically excluded
is referred to as
Which one of the following statements is correct with Charges to increase commercial liability insurance limits frequently exceed 100
respect to increased limits above the basic coverage percent of the charge for basic coverage limits.
limits?
Which one of the following statements is true regarding Trending of losses in fire insurance is generally restricted to claim severity.
ratemaking in different types of insurance?
Which one of the following statements is true regarding The loss ratio ratemaking method cannot be used to determine rates for a new
insurance ratemaking methods? type of insurance.
Which one of the following types of reinsurance is Pro rata
generally chosen by newly incorporated insurers or
insurers with limited capital because it is effective in
providing surplus relief?
Per risk excess of loss reinsurance covers Property insurance and applies separately to each loss occurring to each risk.
Which one of the following statements is correct Reinsurance intermediaries can often help secure high coverage limits and
regarding the available sources of reinsurance? catastrophe coverage.
Which one of the following is correct with regard to an An insurer's line is influenced by the maximum amount of insurance or limit of
insurer's line and large-line capacity? liability allowed by insurance regulations.
Under a per policy excess of loss treaty, the attachment Separately to each insurance policy regardless of the number of losses occurring
point and the reinsurance limit apply under each policy.
To be successful, the differentiation business-level Accurately determine customers' preferences to develop products perceived as
strategy must distinctive.
Which one of the following statements is correct with Data used in developing insurance rates for basic coverage limits include only
respect to increased limits factors in liability insurance? losses associated with the basic coverage limit.
