Webce General Insurance & Life Insurance Exam
g g g g g g
Questions and Answers (Verified Answers)
g g g g
1. Buyingglifegorghealthginsurancegisgangexamplegofgwhichgriskgmanagementg
technique?
riskgavoidanceg
riskgreductiong
riskgretention
riskgtransfer
:griskgtransfer
2. Whatgisgthegmathematicalgconceptgofgprobabilitygthatghelpsginsurersgestimateg
thegstatisticalglikelihoodgofgmortalitygorgmorbidityglossesgatganyggivengage?
lawgofglargegnumbersg
underwritinggprincipleg
lawgofgprobability
actuarialgprinciple
:glawgofglargegnumbers
1g/g105
,3. Agpersongwhogrefusesgtogengagegisgriskygactivitiesglikegrockgclimbinggforgfearg
ofginjurygorgdeathgisgdemonstratinggwhichgriskgmanagementgtechnique?
riskgavoidanceg
riskgreductiong
riskgretention
riskgsharing
:griskgavoidance
4. Whichgofgthegfollowinggisganginsurablegrisk?
thegpossibilitygofglosinggmoneygingstockginvestmentsgt
hegpossibilitygofglosinggmoneyggamblinggingLasgVegas
thegpossibilitygofgbecominggdisabledgandgunablegtogearngangincome
thegpossibilitygofgone'sghomegvaluegdecreasinggduegtogagdropgingmarketgprices-
:gthegpossibilitygofgbecominggdisabledgandgunablegtogearngangincome
5. AllgthegfollowinggstatementsgregardinggreinsurancegaregcorrectgEXCEPT:
Reinsurancegisgagrisk-sharinggprocessgusedgbyginsurancegcompanies.
Claimsgaregpaidgtogthegpolicyownergseparatelygbygeachginsurergparticipatinggin
thegreinsurancegagreement.
Theginsurergacceptinggsomegofgthegriskgbeinggtransferredgfromganotherginsurer
isgknowngasgthegreinsuringgcompany.
2g/g105
,Theginsurergseekinggtogtransfergsomegofgitsgriskgtoganotherginsurergisgknowng
asgthegcedinggcompany.
:gClaimsgaregpaidgtogthegpolicyownergseparatelygbygeachginsurergparticipatinggingtheg
reinsurancegagreement.
3g/g105
, 6. AllgofgthegfollowinggaregcharacteristicsgofgagstockginsurancegcompanygEX-
CEPT:
g
Theygareggovernedgbygagboardgofgdirectors.g
Theygmaygissuegdividends.
Theyghavegminimumgfinancialgcapitalgrequirementsgthatgmustgbegmetgbeforeg
theygcangconductgbusiness.
Theygaregownedgbygpolicyowners.
:gTheygaregownedgbygpolicyowners.
7. Allgofgthegfollowinggstatementsgregardinggthegcareergagencygdistributiong
systemgaregcorrectgEXCEPT:
Thegmanagerialgformgofgcareergagencygsystemgusesgcompanygemployeesgasg
thegagencygmanagers.
Theregaregtwogtypes,gtheggeneralgagencygsystemgandgthegmanagerialgsystem.g
Itgusesgagentsgwhogprimarilygifgnotgexclusivelygrepresentgoneginsurer.
Personalgproducingggeneralgagentsg(PPGAs)garegcommonlyghiredgtogmanageg
careergagencies.
:gPersonalgproducingggeneralgagentsg(PPGAs)garegcommonlyghiredgtogmanagegcareer
g agencies.
8. ThegfederalgRiskgRetentiongActgofg1986gcontainsgguidelinesgforgwhichgofgthe
followinggentities?
reinsurancegcompanies
4g/g105
g g g g g g
Questions and Answers (Verified Answers)
g g g g
1. Buyingglifegorghealthginsurancegisgangexamplegofgwhichgriskgmanagementg
technique?
riskgavoidanceg
riskgreductiong
riskgretention
riskgtransfer
:griskgtransfer
2. Whatgisgthegmathematicalgconceptgofgprobabilitygthatghelpsginsurersgestimateg
thegstatisticalglikelihoodgofgmortalitygorgmorbidityglossesgatganyggivengage?
lawgofglargegnumbersg
underwritinggprincipleg
lawgofgprobability
actuarialgprinciple
:glawgofglargegnumbers
1g/g105
,3. Agpersongwhogrefusesgtogengagegisgriskygactivitiesglikegrockgclimbinggforgfearg
ofginjurygorgdeathgisgdemonstratinggwhichgriskgmanagementgtechnique?
riskgavoidanceg
riskgreductiong
riskgretention
riskgsharing
:griskgavoidance
4. Whichgofgthegfollowinggisganginsurablegrisk?
thegpossibilitygofglosinggmoneygingstockginvestmentsgt
hegpossibilitygofglosinggmoneyggamblinggingLasgVegas
thegpossibilitygofgbecominggdisabledgandgunablegtogearngangincome
thegpossibilitygofgone'sghomegvaluegdecreasinggduegtogagdropgingmarketgprices-
:gthegpossibilitygofgbecominggdisabledgandgunablegtogearngangincome
5. AllgthegfollowinggstatementsgregardinggreinsurancegaregcorrectgEXCEPT:
Reinsurancegisgagrisk-sharinggprocessgusedgbyginsurancegcompanies.
Claimsgaregpaidgtogthegpolicyownergseparatelygbygeachginsurergparticipatinggin
thegreinsurancegagreement.
Theginsurergacceptinggsomegofgthegriskgbeinggtransferredgfromganotherginsurer
isgknowngasgthegreinsuringgcompany.
2g/g105
,Theginsurergseekinggtogtransfergsomegofgitsgriskgtoganotherginsurergisgknowng
asgthegcedinggcompany.
:gClaimsgaregpaidgtogthegpolicyownergseparatelygbygeachginsurergparticipatinggingtheg
reinsurancegagreement.
3g/g105
, 6. AllgofgthegfollowinggaregcharacteristicsgofgagstockginsurancegcompanygEX-
CEPT:
g
Theygareggovernedgbygagboardgofgdirectors.g
Theygmaygissuegdividends.
Theyghavegminimumgfinancialgcapitalgrequirementsgthatgmustgbegmetgbeforeg
theygcangconductgbusiness.
Theygaregownedgbygpolicyowners.
:gTheygaregownedgbygpolicyowners.
7. Allgofgthegfollowinggstatementsgregardinggthegcareergagencygdistributiong
systemgaregcorrectgEXCEPT:
Thegmanagerialgformgofgcareergagencygsystemgusesgcompanygemployeesgasg
thegagencygmanagers.
Theregaregtwogtypes,gtheggeneralgagencygsystemgandgthegmanagerialgsystem.g
Itgusesgagentsgwhogprimarilygifgnotgexclusivelygrepresentgoneginsurer.
Personalgproducingggeneralgagentsg(PPGAs)garegcommonlyghiredgtogmanageg
careergagencies.
:gPersonalgproducingggeneralgagentsg(PPGAs)garegcommonlyghiredgtogmanagegcareer
g agencies.
8. ThegfederalgRiskgRetentiongActgofg1986gcontainsgguidelinesgforgwhichgofgthe
followinggentities?
reinsurancegcompanies
4g/g105
