Book 1 Study 3

Question 1

Who investigates losses?

Answer 1

An adjuster

Question 2

The ______ is responsible for the operation of the company.

Answer 2

CEO

Question 3

Authorized _____ brings business to Lloyds.

Answer 3

Brokers

Question 4

Direct writing insurers do not use _______.

Answer 4

Brokers

Question 5

Another name for an insurer _______.

Answer 5

Carrier

Question 6

Liability insurance would be underwritten in this department _________.

Answer 6

Casualty

Question 7

The overall object of an insurance company is ___________.

Answer 7

Profit

Question 8

A request for insurance is a/an ___________.

Answer 8

Application

Question 9

Assets less liabilities equal ____________.

Answer 9

Net Worth

Question 10

___________ are insurers who operate for the benefit of their members.

Answer 10

Mutuals

Question 11

Factory mutuals have specialized in the field of _______.

Answer 11

Fire prevention

Question 12

Who owns a stock company?

Answer 12

Share holders

Question 13

The ________ department of an insurance company bring in the business.

Answer 13

Marketing

Question 14

Losses which have been occurred but have not yet been reported.

Answer 14

I.B.N.R. (incurred but not reported)

Question 15

Reserves for unearned premiums are ________ in the companies books.

Answer 15

Liabilities

Question 16

It is the responsibility of the _______ to see that a company is run according to it’s by-laws.

Answer 16

Board of Directors

Question 17

________ is the subject of an insurance contract.

Answer 17

Risk

Question 18

Unemployment insurance is an example of _______.

Answer 18

Monopolistic (Compulsory- UI Workers Compensation )

Question 19

Agent/Brokers are appointed by the ________.

Answer 19

Marketing department

Question 20

The actual owners or Lloyds are known as _______.

Answer 20

Members

Question 21

A ______ refers to a class of risk.

Answer 21

Line

Question 22

All the companies wealth is referred to as its ______.

Answer 22

Assets

Question 23

Interest on investments is a major source of profit for ________ companies.

Answer 23

Stock

Question 24

The maximum amount an insurer will insure itself is it’s _______.

Answer 24

Retention

Question 25

The _______ department is responsible for the selection of risks to be insured.

Answer 25

Underwriting