RMIN 5100S Test 1 (Atkinson)
Questions and Correct Answers | Latest
Update 2026
Risk Manager
- "insured" buyer of insurance
- Larger companies will have one personal one
- Small to mid-sized companies will have someone else who serves this role
- Must evaluate risks and determine the best approach to manage risks -- including Loss Control,
Retention and transfer techniques
Agent or Broker
"Intermediary" Facilitates the purchase of insurance. Advises insured. Negotiates with the
insurer.
Independent Agent
- The agent has contracts with several to many companies
- More frequently used in Commercial P&C
Exclusive Agent
- More frequently used in personal lines and very small businesses
,- Agents ONLY sell products for this insurance company.
Broker vs Independent Agent
(Brokers) Legally work on behalf of the insurance buyer
(Independent Agent) Legally works on behalf of the insurance company
Underwriter
"insurer" Provides insurance coverage aka the insurance company
Underwriting
refers to the process of selecting, classifying, and pricing applicants for insurance (set terms,
conditions, pricing)
Line underwriter
makes daily decisions concerning the acceptance or rejection of business
the Chief Underwriting Officer
who sets the standards and guidelines
, Why is it so difficult to figure out what to charge in rating and ratemaking?
With insurance, we do not know the cost of the goods until AFTER the product is sold.
Ratemaking
refers to the pricing of insurance and the calculation of insurance premiums.
rate
price per unit of insurance
Premiums equation
Rate X Exposure units
What are the objectives of the claims settlement process?
- Verification of a covered loss. "Is it covered? Did it happen?"
- Fair and prompt payment of claims
- Personal assistance to the insured
McCarren Ferguson Act of 1945
Insurance is regulated by the individual states, Federal laws may also apply so long as the
legislation specifies that it applies to the business of insurance.
Questions and Correct Answers | Latest
Update 2026
Risk Manager
- "insured" buyer of insurance
- Larger companies will have one personal one
- Small to mid-sized companies will have someone else who serves this role
- Must evaluate risks and determine the best approach to manage risks -- including Loss Control,
Retention and transfer techniques
Agent or Broker
"Intermediary" Facilitates the purchase of insurance. Advises insured. Negotiates with the
insurer.
Independent Agent
- The agent has contracts with several to many companies
- More frequently used in Commercial P&C
Exclusive Agent
- More frequently used in personal lines and very small businesses
,- Agents ONLY sell products for this insurance company.
Broker vs Independent Agent
(Brokers) Legally work on behalf of the insurance buyer
(Independent Agent) Legally works on behalf of the insurance company
Underwriter
"insurer" Provides insurance coverage aka the insurance company
Underwriting
refers to the process of selecting, classifying, and pricing applicants for insurance (set terms,
conditions, pricing)
Line underwriter
makes daily decisions concerning the acceptance or rejection of business
the Chief Underwriting Officer
who sets the standards and guidelines
, Why is it so difficult to figure out what to charge in rating and ratemaking?
With insurance, we do not know the cost of the goods until AFTER the product is sold.
Ratemaking
refers to the pricing of insurance and the calculation of insurance premiums.
rate
price per unit of insurance
Premiums equation
Rate X Exposure units
What are the objectives of the claims settlement process?
- Verification of a covered loss. "Is it covered? Did it happen?"
- Fair and prompt payment of claims
- Personal assistance to the insured
McCarren Ferguson Act of 1945
Insurance is regulated by the individual states, Federal laws may also apply so long as the
legislation specifies that it applies to the business of insurance.
