@PROFDOCDIGITALLIBRARIES
RM497 EXAM 1 QUESTIONS AND ANSWERS
UPDATED 2024/2025 A COMPLETE EXAM
SOLUTION WITH CORRECT CONFIRMED
ANSWERS GRADED TO SCORE A+
Taxonomy - CORRECT ANSWERS Ways to classify insurance
Life Health Insurance (LH) - CORRECT ANSWERS Protection from
damage from a personal risk (ex- Investments)
PR
Property Casualty Insurance (PC) - CORRECT ANSWERS Protection
from damage to a property, lawsuits, and related losses
O
FD
Social Insurance - CORRECT ANSWERS Programs in which eligibility is
based on prior contributions to government, usually in the form of
payroll taxes (ex- social security)
O
Ordinary Insurance (individual insurance) - CORRECT ANSWERS
C
Individually issued life, health, and retirement coverages
Industrial Insurance (individual insurance) - CORRECT ANSWERS
Small amounts of protection
Credit Insurance (individual insurance) - CORRECT ANSWERS Secures
the borrowers loan balance if they die or become disabled
, @PROFDOCDIGITALLIBRARIES
Group Insurance - CORRECT ANSWERS Policies covering over 50
people in one contract
Indemnification - CORRECT ANSWERS The insured is restored to his
or her approximate financial position prior to the occurrence of the
loss
Valued Policy - CORRECT ANSWERS Pays a stated amount if loss
occurs
PR
Human Life Value - CORRECT ANSWERS Basis for valuing a persons
life in life insurance, measured from the persons dependants
O
Roles of Employee Benefit Plans - CORRECT ANSWERS
FD
Accommodation/enhancement benefits, PTO, protection programs*
Types of Employee Benefits - CORRECT ANSWERS Legally required
O
benefits (social security), Discretionary benefits (retirement plans)
C
Characteristics of a perfectly competitive market - CORRECT
ANSWERS - Large number of buyers and sellers
- No barriers to entry or exit
- Homogeneous product
- Buyers and sellers have full and equal information about the
products
RM497 EXAM 1 QUESTIONS AND ANSWERS
UPDATED 2024/2025 A COMPLETE EXAM
SOLUTION WITH CORRECT CONFIRMED
ANSWERS GRADED TO SCORE A+
Taxonomy - CORRECT ANSWERS Ways to classify insurance
Life Health Insurance (LH) - CORRECT ANSWERS Protection from
damage from a personal risk (ex- Investments)
PR
Property Casualty Insurance (PC) - CORRECT ANSWERS Protection
from damage to a property, lawsuits, and related losses
O
FD
Social Insurance - CORRECT ANSWERS Programs in which eligibility is
based on prior contributions to government, usually in the form of
payroll taxes (ex- social security)
O
Ordinary Insurance (individual insurance) - CORRECT ANSWERS
C
Individually issued life, health, and retirement coverages
Industrial Insurance (individual insurance) - CORRECT ANSWERS
Small amounts of protection
Credit Insurance (individual insurance) - CORRECT ANSWERS Secures
the borrowers loan balance if they die or become disabled
, @PROFDOCDIGITALLIBRARIES
Group Insurance - CORRECT ANSWERS Policies covering over 50
people in one contract
Indemnification - CORRECT ANSWERS The insured is restored to his
or her approximate financial position prior to the occurrence of the
loss
Valued Policy - CORRECT ANSWERS Pays a stated amount if loss
occurs
PR
Human Life Value - CORRECT ANSWERS Basis for valuing a persons
life in life insurance, measured from the persons dependants
O
Roles of Employee Benefit Plans - CORRECT ANSWERS
FD
Accommodation/enhancement benefits, PTO, protection programs*
Types of Employee Benefits - CORRECT ANSWERS Legally required
O
benefits (social security), Discretionary benefits (retirement plans)
C
Characteristics of a perfectly competitive market - CORRECT
ANSWERS - Large number of buyers and sellers
- No barriers to entry or exit
- Homogeneous product
- Buyers and sellers have full and equal information about the
products
