CLCS EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLTUIONS AND VERIFIED
Signing a contract that makes someone else legally responsible for your acts is
an example of what type of risk management technique?
a. Control
b. Retention
c. Non-insurance Transfer
d. Avoidance
C
Which of the following is not a reason for exclusions in an insurance policy?
a. The loss is not commercially insurable
b. The exposure is better covered on another type of policy
c. The loss is wholly of partially within the control of the insured
d. The loss is fortuitous
D
The most distinctive feature of social insurance is that:
a. Social insurance provides an almost endless variety of coverage, meeting
almost any insurance need that arises.
b. Social insurance is a form of voluntary government insurance on risks that
private insurers may find too hazardous to assume on their own
c. Social insurance is available only to those individuals who choose to
participate in the program
d. Social insurance is compulsory in nature
D
, A nuclear explosion is not generally considered an insurable exposure because:
a. the loss would not be accidental
b. There would be no way to asses the monetary damages
c. It would be considered a catastrophic event
d. The loss would not be definite
C
Which one of the following is not classified as a profit-making insurer?
a. Cooperative insurer
b. Mutual insurer
c. Reciprocal insurer
d. Stock insurer
A
Losses that result from a direct loss to property are called:
a. uninsurable
b. unintended
c. indirect
d. indemnified
C
An insurer with a policy of insuring no more than 10 percent of the mobile homes
located in any one mobile park is:
a. Applying the law of large numbers
b. Spreading its risks
c. Applying the risk management technique of retention
d. Probably acting against the public interest
B
Donna is an agent of XYZ Insurance Comapany. She signed a contract with XYZ
specifically authorizing her to sell policies for XYZ. The authorization is an
COMPLETE SOLTUIONS AND VERIFIED
Signing a contract that makes someone else legally responsible for your acts is
an example of what type of risk management technique?
a. Control
b. Retention
c. Non-insurance Transfer
d. Avoidance
C
Which of the following is not a reason for exclusions in an insurance policy?
a. The loss is not commercially insurable
b. The exposure is better covered on another type of policy
c. The loss is wholly of partially within the control of the insured
d. The loss is fortuitous
D
The most distinctive feature of social insurance is that:
a. Social insurance provides an almost endless variety of coverage, meeting
almost any insurance need that arises.
b. Social insurance is a form of voluntary government insurance on risks that
private insurers may find too hazardous to assume on their own
c. Social insurance is available only to those individuals who choose to
participate in the program
d. Social insurance is compulsory in nature
D
, A nuclear explosion is not generally considered an insurable exposure because:
a. the loss would not be accidental
b. There would be no way to asses the monetary damages
c. It would be considered a catastrophic event
d. The loss would not be definite
C
Which one of the following is not classified as a profit-making insurer?
a. Cooperative insurer
b. Mutual insurer
c. Reciprocal insurer
d. Stock insurer
A
Losses that result from a direct loss to property are called:
a. uninsurable
b. unintended
c. indirect
d. indemnified
C
An insurer with a policy of insuring no more than 10 percent of the mobile homes
located in any one mobile park is:
a. Applying the law of large numbers
b. Spreading its risks
c. Applying the risk management technique of retention
d. Probably acting against the public interest
B
Donna is an agent of XYZ Insurance Comapany. She signed a contract with XYZ
specifically authorizing her to sell policies for XYZ. The authorization is an
