1/16 Flashcards
1
Q
___ measures the number of losses in a given period over the number of exposures to the loss.
A
Frequency
2
Q
___ is land and anything affixed to the land.
A
Real property
3
Q
___ refer to coverages that are usually purchased with fire insurance, such as windstorm, hail, and vandalism.
A
Allied lines
4
Q
What is the most prominent insurance in the US?
A
Medicaid
5
Q
Name the five social benefits of insurance.
A
- Indemnification for loss
- Reduction of worry and fear
- Source of investment funds
- Loss prevention
- Enhancement of credit
6
Q
A(n) ___ is the amount needed to pay all expenses, including commissions, general administrative expenses, state premium taxes, acquisition expenses, and an allowance for contingencies and profit.
A
Expense loading
7
Q
___ refer to higher premiums to cover additional losses that reduce disposable income of other goods and services.
A
Inflated claims
