CPCU 520 Practice Test Questions
Study online at https://quizlet.com/_2y29u5
1. Which one of the following functional areas of Keithly can assist Alex with
this audit's irregularity?: Special Investigation Unit
2. Which one of the following best describes a FAIR plan and its insureds?: -
State-run plans with cost spread among private insurers in the state
3. Which one of the following departments provides information to the under-
writing department to assist in selecting and rating risks?: Risk control
4. All corporations are obligated to promote the well-being of society. At the
minimum, this obligation demands that the insurer should: Avoid causing any
public harm.
5. Which one of the following insurer functions includes calculating insurance
rates, developing rating plans, estimating loss reserves, and providing predic-
tive modeling services?: Actuarial
6. Property-casualty insurers can be classified in which one of the following
ways?: Licensing status
7. Which one of the following statements is correct with regard to an insurer's
goals?: A proprietary insurer must earn competitive profits to raise the capital
needed to operate.
8. The United States regulatory framework has evolved over time into which
one of the following approaches used by insurance regulators today?: Risk-fo-
cused approach
9. Which one of the following statements regarding licensing of insurers or
insurance personnel is true?: Some states permit the insurance commissioner to
deny a license to an otherwise worthy applicant if the commissioner believes that
no additional insurers are needed in the state.
10. Which one of the following statements is correct?: If insurers become insol-
vent, future claims might not be paid and the insurance protection already paid for
might become worthless.
11. One way state insurance regulators help to protect consumers is by re-
viewing insurance policy forms to determine whether they benefit consumers
and: Comply with state consumer protection laws.
12. Every state insurance department is headed by a state insurance commis-
sioner, a director, or by a: Superintendent.
13. How often does the National Association of Insurance Commissioners
(NAIC) meet to discuss important problems and issues in insurance regula-
tion?: Three times a year
14. Which one of the following statements is correct?: An insurer does not know
what its actual expenses will be when a policy is sold.
1/4
Study online at https://quizlet.com/_2y29u5
1. Which one of the following functional areas of Keithly can assist Alex with
this audit's irregularity?: Special Investigation Unit
2. Which one of the following best describes a FAIR plan and its insureds?: -
State-run plans with cost spread among private insurers in the state
3. Which one of the following departments provides information to the under-
writing department to assist in selecting and rating risks?: Risk control
4. All corporations are obligated to promote the well-being of society. At the
minimum, this obligation demands that the insurer should: Avoid causing any
public harm.
5. Which one of the following insurer functions includes calculating insurance
rates, developing rating plans, estimating loss reserves, and providing predic-
tive modeling services?: Actuarial
6. Property-casualty insurers can be classified in which one of the following
ways?: Licensing status
7. Which one of the following statements is correct with regard to an insurer's
goals?: A proprietary insurer must earn competitive profits to raise the capital
needed to operate.
8. The United States regulatory framework has evolved over time into which
one of the following approaches used by insurance regulators today?: Risk-fo-
cused approach
9. Which one of the following statements regarding licensing of insurers or
insurance personnel is true?: Some states permit the insurance commissioner to
deny a license to an otherwise worthy applicant if the commissioner believes that
no additional insurers are needed in the state.
10. Which one of the following statements is correct?: If insurers become insol-
vent, future claims might not be paid and the insurance protection already paid for
might become worthless.
11. One way state insurance regulators help to protect consumers is by re-
viewing insurance policy forms to determine whether they benefit consumers
and: Comply with state consumer protection laws.
12. Every state insurance department is headed by a state insurance commis-
sioner, a director, or by a: Superintendent.
13. How often does the National Association of Insurance Commissioners
(NAIC) meet to discuss important problems and issues in insurance regula-
tion?: Three times a year
14. Which one of the following statements is correct?: An insurer does not know
what its actual expenses will be when a policy is sold.
1/4
