UNIT 1 FINA 4352 RISK EXAM QUESTIONS WITH VERIFIED
CORRECT ANSWERS GRADED A++
In property insurance, an insurable interest must exist
both at the time of issuance and at the time of loss
Fundamental Risks
Risk of an earthquake
Particular risks are risks that
affect only individuals, such as the possibility of loss of income or assets because of the
inability to earn income (e.g., premature death, dependent old age, sickness, disability,
unemployment).
Dividends are not paid on nonparticipating life insurance policies.
T
Mutual companies are owned by their policyholders and may offer participating
policies.
T
Stock companies are owned by the stockholders and usually offer
nonparticipating policies.
T
Because clients can only accept or reject an insurance contract and cannot
modify its terms, the contract is said to be
a contract of adhesion
CORRECT ANSWERS GRADED A++
In property insurance, an insurable interest must exist
both at the time of issuance and at the time of loss
Fundamental Risks
Risk of an earthquake
Particular risks are risks that
affect only individuals, such as the possibility of loss of income or assets because of the
inability to earn income (e.g., premature death, dependent old age, sickness, disability,
unemployment).
Dividends are not paid on nonparticipating life insurance policies.
T
Mutual companies are owned by their policyholders and may offer participating
policies.
T
Stock companies are owned by the stockholders and usually offer
nonparticipating policies.
T
Because clients can only accept or reject an insurance contract and cannot
modify its terms, the contract is said to be
a contract of adhesion
