Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

CPCU 552 > CPCU 552 > Flashcards

CPCU 552 Flashcards

1
Q

Any loss that a person or organization sustains as a result of a claim or suit against that person or organization by someone seeking damages or some other remedy permitted by law.

A

Liability Loss

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

The legally enforceable obligation of a person or an organization to pay a sum of money (called damages) to another person or organization

A

Legal liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

A classification of law that applies to legal matters not governed by criminal law and that protects rights and provides remedies for breaches of duties owed to others.

A

Civil law

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

The branch of the law that imposes penalties for wrongs against society.

A

Criminal law

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

A wrongful act or an omission, other than a crime or a breach of contract, that invades a legally protected right.

A

Tort

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

The failure to exercise the degree of care that a reasonable person in a similar situation would exercise to avoid harming others.

A

Negligence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

A tort committed by a person who foresees (or should be able to foresee) that his or her act will harm another person.

A

Intentional tort

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Liability imposed by a court or by a statue in the absence of fault when harm results from activities or conditions that are extremely dangerous, unnatural, ultrahazardous, extraordinary, abnormal, or inappropriate.

A

Strict liability (absolute liability)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

A legally enforceable agreement between two or more parties in which each party makes some promise to the other.

A

Contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

The failure, without legal excuse, to fulfill a contractual promise.

A

Breach of contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

A contractual provision that obligates one of the parties to assume the legal liability of another party.

A

Hold-harmless agreement (or indemnity agreement)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Liability assumed through a hold-harmless agreement.

A

Contractual liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

A written law passed by a legislative body at either the federal or state level.

A

Statue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Any condition or situation that presents a possibility of loss, whether or not an actual loss occurs.

A

Loss exposure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

A conscious act or decision not to act that reduces the frequency and/or severity of losses or makes losses more predictable.

A

Risk control

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

The event or circumstance that directly leads to an occurrence.

A

Root cause

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

A risk control technique that reduces the frequency of a particular loss.

A

Loss prevention

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

A risk control technique that reduces the severity of a particular loss.

A

Loss reduction

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

A risk control technique that involves ceasing or never undertaking an activity so that the possibility of a future loss occurring from that activity is eliminated.

A

Avoidance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

A risk financing technique in which one party transfers the potential financial consequence of a particular loss exposure to another party that is not an insurer.

A

Noninsurance risk transfer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Laws that develop out of court decisions in particular cases and establish precedents for future cases.

A

Common law (case law)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

The branch of civil law that deals with civil wrongs other than breaches of contract.

A

Tort law

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

The formal laws, or statues, enacted by federal, state, or local legislative bodies.

A

Statutory law

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

The event that triggers coverage under an occurrence coverage form: injury or damage that occurs during the policy period.

A

Occurrence coverage trigger

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

The event that triggers coverage under a claims-made coverage form; the first making of a claim against any insured during either the policy period or an extended reporting period.

A

Claims-made coverage trigger

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Interest that may accrue on damages before a judgement has been rendered.

A

Prejudgment interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Interest that may accrue on damages after a judgement has been entered in court and before the money is paid.

A

Postjudgement interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Insurance coverage for losses that exceeds the limits of underlying insurance coverage or a retention amount.

A

Excess liability insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

A liability policy that provides excess coverage above underlying policies and may also provide coverage not available in underlying policies, subject to a self-insured retention.

A

Umbrella liability policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

A claim that is characterized by an extended delay between the claim’s triggered event and the reporting of the event to the insurer

A

Long-tail claim

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

A statue holding establishments that serve alcoholic beverages responsible for harm that results from serving patrons alcohol in violation of the statue.

A

Dram shop act

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

The unit in which the exposure is measured, such as gross sales or payroll.

A

Premium base

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

A numeric code representing the description in the rating classification table that best fits a particular organization’s operations.

A

Class code

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

An employer’s liability for its employee’s operations of their autos in the employer’s business.

A

Employers non ownership liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Policy that covers two or more lines of business by combining ISO’s commercial lines coverage parts.

A

Commercial package policy (CPP)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Policy that covers only one line of business.

A

Monoline policy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Coverage for damage to customers’ autos left in the named insured’s care while the insured is attending, servicing, repairing, parking, or storing them.

A

Garagekeepers coverage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Trucks in the medium and larger size classes that are operated beyond a 200-mile radius of the principal garaging location and that are subject to zone rating, which considers the territories in which insured vehicles operates.

A

Zone rated vehicles

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

The ISO coverage form designed to meet the auto, GL, and errors and omissions liability insurance needs of auto and trailer deals

A

Auto dealers coverage form

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

The provision on the ADCF that severely restricts coverage for customers of the insured auto dealer.

A

Customer Limitation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

The endorsement that deletes the False Pretense exclusion from the ADCF and agrees to pay for loss as a result of the named insured’s (1) being tricked into voluntarily parting with an auto or (2) acquiring an auto from a seller who did not have legal title.

A

False Pretense Coverage endorsement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

The endorsement that modifies the ADCF to cover an auto dealer for collision damage to any covered auto while being driven or transported from the point of purchase or distribution to its destination if such points are more than fifty road miles apart

A

Dealers Driveaway Collision Coverage endorsement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

Coverage that pays necessary medical expenses incurred within a specified period by a claimant (and in certain policies, by an insured) for a covered injury, regardless of whether the insured was at fault

A

Medical payments coverage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

The coverage form filed by ISO that can be used to insure a person or an organization providing transportation by auto in the furtherance of a commercial enterprise.

A

Motor Carrier Coverage Form

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

Individuals who lease themselves and their owned trucks to motor carrier to transport property for the motor carrier.

A

Owner-operators

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

A contract under which two motor carriers agree to swap trailers and to indemnify each other for any damage that occurs to the other’s trailer while it is in the borrowing motor carrier’s possession.

A

Trailer interchange agreement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

Coverage for a motor carrier’s liability for damage o trailers in its possession under a written trailer interchange agreement.

A

Trailer interchange coverage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

The commercial auto endorsement required by the motor carrier act of 1980, in which the insurer agrees to pay, up to specified limits, the damages that the insured becomes legally obligated to pay for the liability resulting from the negligence in the operation, maintenance, or use of any motor vehicle subject to that law.

A

MCS 90 endorsement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

A statue that obligates employers, regardless of fault, to pay specified medical disability rehabilitation, and death benefits for their employees’ job-related injuries and diseases.

A

Workers compensation statue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

Disease thought to be caused by work or the work environment

A

Occupational disease

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

A disability caused by a work-related injury or disease temporarily limits the extent to which a worker can perform job duties; the worker is eventually able to return to full duties and hours.

A

Temporary partial disability (TPD)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

A disability caused by a work-related injury or disease that temporarily renders an injured worker unable to perform any job duties for a period of time.

A

Temporarily total disability (TTD)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

A person hired to perform services for another under the direction and control of the other party, called the employer.

A

Employee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

A person (or an organization) hired to perform services without being subject to the hire’s direction and control regarding work details.

A

Independent contractor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

A federal statue that eliminates the right of most maritime workers (other than crew members of vessels) to sue their employers and, in return, requires such employers to provide injured or ill workers with benefits like those provided by state workers compensation statue.

A

United States Longshore and Harbor Workers’ Compensation Act (LHWCA)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

A federal statue that permits injured members of a vessel’s crew (or survivors of a deceased cred member) to sue their employer for damages due to the employers negligence.

A

Jones Act (United States Merchant Marine Act of 1920)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

A state fund that sells workers compensation insurance in competition with private insurers.

A

Competitive state fund

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

A facility, owned and operated by a state government, that provides workers compensation insurance and that does not permit any other insurer to sell workers compensation insurance in that state

A

Monopolistic state fund (exclusive state fund)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

A mutual insurer established by a state’s legislature to write workers compensation insurance for any qualified employer in the state

A

Employers mutual insurance company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

Insurance that covers loss due to a single occurrence only for the amount that exceeds the policy retention.

A

Specific excess insurance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

The policy used in most states to provide workers compensation and employees liability insurance

A

Workers Compensation and Employers Liability Insurance Policy (WC&EL policy)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

Coverage for employers liability that private insurers provide to employers operating in a monopolistic state fund that does not include such insurance in its workers compensation policy.

A

Stop gap coverage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

Endorsement that amend the WC&EL policy to cover employees who are not subject to workers compensation statue.

A

Voluntarily Compensation and Employers Liability Coverage Endorsement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
64
Q

Coverage that insures employees who are working outside the US and who are not subject to a workers compensation law for benefits equal to those provided under either the workers compensation statue of a specified state or a specific federal compensation act.

A

Foreign voluntary workers compensation coverage

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
65
Q

An endorsement that amends the workers compensation and employers liability policy to cover the insured’s obligations under the US Longshore and Harber Workers Compensation Act.

A

United States Longshore and Harbor Worker’s Compensation Act Endorsement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
66
Q

Endorsement that amends the Workers Compensation and Employers Liability Insurance Policy to cover an employers liability for injury or death of crew members.

A

Maritime Coverage Endorsement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
67
Q

The endorsement in which a workers compensation insurer agrees not to endorse its right of subrogation against any organization listed in the endorsement’s schedule.

A

Waiver of Our Right to Recover from Others Endorsement

68
Q

The endorsement that extends workers compensation and employers liability coverage to an additional organization names in the endorsement

A

Alternate Employer Endorsement

69
Q

A rate multiplier derived from the experience rating computation.

A

Experience modification

70
Q

A rating plan that adjusts the insured’s premium for the current policy period based on the insured’s loss experience during the current period; paid losses or incurred losses may be used to determine loss experience.

A

Retrospective rating plan

71
Q

An insurance policy with a per occurence or per accident deductible of $100,000 or more.

A

Large deductible plan

72
Q

The duty to act in the best interests of another.

A

Fiduciary act

73
Q

A legal rule that provides that a director will not be personally liable for a decision involving business judgement, provided the director made an informed decision and acted in good faith.

A

Business judgement rule

74
Q

An act of a corporation that exceeds its chartered powers.

A

Ultra vires

75
Q

Insurance that covers a corporation’s directors and officers against liability for their wrongful acts covered by the policy and also covers the sums that the insured corporation is required or permitted by law to pay to the directors and officers as indemnification.

A

Directors and officers (D&O) liability insurance

76
Q

A policy covering the liability of a corporation’s directors while they serve as outside directors for another corporation.

A

Outside directors liability policy

77
Q

Directors and officers liability insurance that covers only the individual liability of the insured director and officers.

A

Side A-only coverage

78
Q

A D&O liability policy that insured only the independent director named in the policy.

A

Independent director liability policy

79
Q

Insurance that covers an organization, its directors, and officers, and its employees against claims alleging damages because of wrongful employer practices such as sexual harassment, wrongful termination, and unlawful discrimination.

A

Employment practices and liability (EPL) insurance

80
Q

Insurance that covers the fiduciaries of an employee benefits plan against liability claims alleging breach of their fiduciary duties involving discretionary judgement

A

Fiduciary liability insurance

81
Q

A payment awarded by a court to indemnify an injured party for losses that result indirectly from a wrong such as breach of contract or a tort.

A

Consequential damages

82
Q

A reasonable estimation of actual damages, agreed to by contracting parties and included in the contract, to be pair in the event of a breach or for negligence.

A

Liquidated damages

83
Q

An award that indicates that, while the plaintfiff has sustained some harm, the injury is not one warranting substantial monetary relief.

A

Nominal damages

84
Q

An insurance policy that covers third-party claims arising from either sudden or gradual releases of pollutants from specified locations.

A

Site-specific environmental impairment liability (EIL) policy

85
Q

An insurance policy that includes both commercial general liability (CGL) coverage and environmental liability (EIL) coverage

A

CGL/EIL combination policy

86
Q

An insurance policy that provides proof of financial responsibility under governmental regulations that apply to the owners and operations of underground storage tanks containing fuels or other hazardous materials.

A

Underground storage tank (UST) compliance policy

87
Q

An insurance policy purchased in connection with a sale of property in order to transfer a potential pollutant cleanup liability and third party damages to an insurer.

A

Property transfer policy

88
Q

An insurance policy purchased to insure remediation costs that exceed the projector or anticipated costs of performing an environmental cleanup of specific location that is being sold

A

Remediation stop-loss policy (cost cap policy)

89
Q

An insurance policy that protects a lender’s security interest in property having environmental loss exposures that are not severe enough to require true EIL insurance

A

Secured creditors policy

90
Q

An insurance policy that covers the pollution related loss exposure of a contractor.

A

Contractors pollution liability (CPL) policy

91
Q

Ocean shipping by cargo vessels (called tramps) that have no fixed schedule of sailing.

A

Tramp Shipping

92
Q

A shipper that charters a vessel for a particular voyage

A

Voyage charterer

93
Q

A shipper that charters a vessel for a specified time period.

A

Time charterer

94
Q

The contract of carriage used for tramp shipping.

A

Charter party

95
Q

The compensation a carrier receives for transporting cargo

A

Freight

96
Q

The revenue a passenger vessel earns.

A

Passage money

97
Q

Partial loss that must, according to maritime law, be shared by all parties to a voyage (cargo owners and vessel owner).

A

General average

98
Q

Partial loss that is borne by only one party to a voyage (such as a cargo owner)

A

Particular average

99
Q

A professional who specializes in handling general average adjustments

A

Average adjuster

100
Q

Insurance that covers shipowners against various liability claims due to operating the insured vessel

A

Protection and indemnity (P&I) insurance

101
Q

Insurance that covers physical damage to vessels, including their machinery and fuel but not their cargo,

A

Hull Insurance

102
Q

A charter that agrees to be responsible for actually operating and insuring the vessels

A

Bareboat charterer

103
Q

The service rendered by those who rescue a ship or cargo from peril and restore it to its rightful owners.

A

Salvage

104
Q

The temporary possession by one party (the bailee) of personal property owners by another party (the bailor) for a specific purpose, such as cleaning or repair.

A

Bailment

105
Q

Several insurers, not otherwise related, that join together to insure loss exposure that individual insurers are unwilling to insure.

A

Pool

106
Q

An association of investors, grouped in syndicates, who are represented by underwriters to write insurance and reinsurance.

A

Lloyd’s (Lloyd’s of London)

107
Q

Categories of airplane use that are used in aviation insurance classification and rating.

A

Purpose-of-use categories

108
Q

A type of aircraft hull insurance that provides ‘all-risks’ coverage whether or not the aircraft is in flight at the time of loss.

A

‘All risks’ - ground and flight

109
Q

A type of aircraft hull insurance that provides ‘all-risks- coverage only while the aircraft is on the ground and not moving under its own power from any resulting momentum

A

‘All risks’ - not in motion

110
Q

A schedule, attached to an aircraft policy, that limits the insured’s recovery for each specified part of the aircraft to a stipulated percentage of the aircraft’s total insured value.

A

Component parts schedule

111
Q

The coverage, available under aircraft insurance policies, that provides scheduled benefits if a passenger suffers death, dismemberment, or loss of sight.

A

Passenger voluntary settlement coverage (admitted liability coverage)

112
Q

Insurance that applies below an excess or umbrella liability policy.

A

Underlying insurance

113
Q

A policy that covers liability claims in excess of the limits of an underlying policy or a stated retention amount.

A

Excess liability policy

114
Q

An excess liability policy that is subject to its own provision only and does not depend on provisions of the underlying policies for determining the scope of its coverage

A

Self-contained excess liability policy

115
Q

An excess liability policy that requires the insured to retain a specified amount of loss from the first dollar during a specified period of time, usually one year; the insurer then pays all loss for that period that exceeds the retention, up to the policy limit.

A

Aggregate, or stop loss, excess liability insurance policy

116
Q

Coverage provided by many umbrella liability policies for (1) claims not covered at all by the underlying policies and (2) claims that are not covered by an underlying policy only because the underling policy’s aggregate limits have been depleted.

A

Drop-down coverage

117
Q

An amount that is deducted from claims that are payable under an umbrella liability policy and that are not covered at all by any primary policy

A

Self-insured retention (SIR)

118
Q

An umbrella liability policy condition that obligates the insured to maintain all required underlying coverages in full force and effect during the policy period.

A

Maintenance of underlying insurance condition

119
Q

The layers of coverage in an organizations’s insurance program that are most often called on to pay claims.

A

Working layers

120
Q

A level of excess insurance coverage between a primary layer and an umbrella policy

A

Buffer layer

121
Q

Property that has a physical form.

A

Tangible property

122
Q

Property that has no physical form

A

Intangible property

123
Q

Biological identification of an individual using anatomy or physiology

A

Biometrics

124
Q

An attempt to overwhelm a computer system or network with excessive communications in order to deny user access.

A

Denial-of-service attack

125
Q

A risk financing technique by which losses are retained by generating funds within the organization to pay for the loss.

A

Retention

126
Q

Malicious software, such as a virus, that is transmitted from one computer to another to exploit system vulnerabilities in the targeted computer.

A

Malware

127
Q

The value of an organization has attained beyond the value of its tangible assets because of its favorable reputation

A

Goodwill

128
Q

An insurer not authorized by the state insurance department to do business within the state.

A

Nonadmitted insurer

129
Q

A policy that bundles the property and casualty coverages commonly needed by business with international loss exposure

A

International package policies

130
Q

An insurance arrangement that provides comprehensive coverage for organizations operating internationally by linking one or more master policies written in the organization’s home country to local policies in countries in which the organization does business.

A

Controlled master program

131
Q

The losses that have occurred during a specific period, no matter when claims resulting from the losses are pair.

A

Incurred losses

132
Q

Costs incurred by an insurer for operations, taxes, fees, and other acquisition of new policies

A

Underwriting expenses

133
Q

An estimate of the amount of money the insurer expects to pay in the future for losses that have already occurred and been reported, but are not yet settled.

A

Loss reserve

134
Q

The portion of written premiums that corresponds to the coverage that has already been provided.

A

Earned premiums

135
Q

Under statutory accounting principles (SAP), an insurer;s total admitted assets minus its total liabilities.

A

Policyholder surplus

136
Q

Interest, dividends, and net capital gains received by an insurer from the insurer’s financial assets, minus its investment expenses

A

Investment income

137
Q

The portion of an organization’s profits that is paid shareholders.

A

Divdends

138
Q

An insurer liability representing the amount of premiums received form policyholders that are not yet earned.

A

Unearned premium reserve

139
Q

The expense that an insurer incurs to investigate, defend, and settle claims according to the terms specified in the insurance policy

A

Loss adjustment expense (LAE)

140
Q

The expense an insurer incurs to investigate, defend, and settle claims that are associated with a specific claim.

A

Allocated loss adjustment expense (ALAE)

141
Q

Loss adjustment expense that cannot be readily associated with a specific claim.

A

Unallocated loss adjustment expense (ULAE)

142
Q

A ratio that measures losses and loss adjustment expenses against earned premiums that reflects the percentage of premium being consumed by losses.

A

Loss ratio

143
Q

An insurer’s incurred underwriting expenses for a given period divided by its written premiums for the same period.

A

Expense ratio

144
Q

A profitability ratio that indicates whether an insurer has made an underwriting loss or gain

A

Combined ratio

145
Q

The linking of the employee’s goals with organizational goals to ensure that employees understand their role in attaining organizational goals.

A

Goal alignment

146
Q

An internal document that sets out an organization’s long term corporate goals, objectives, and strategic initiatives and that used by the organization to align its budget structure with its organizations priorities, missions, and objectives

A

Strategic plan

147
Q

Large-scale action plans for interacting with the business environment in order to achieve long-term goals.

A

Strategy

148
Q

The specific actions required by the organization to implement its strategy.

A

Tactics

149
Q

The actions required by organizational units or departments for completing a tactic.

A

Activities

150
Q

Limited assignments with target completion dates

A

Tasks

151
Q

A group of policies with a common characteristic, such as territory or type of coverage, or all policies written by a particular insurer or agency.

A

Book of business

152
Q

A claims that is characterized by an extended delay between the claims triggering event and the reporting of the event to the insurer.

A

Long-tail claim

153
Q

A problem with a product line that incurs more losses over a specific period of time than were contemplated when the rates were set

A

Frequency problem

154
Q

A problem with a product line that incurs losses over a specific period of time that are larger than those contemplated when the rates were set.

A

Severity problem

155
Q

The process of extracting hidden patterns from data that is used in a wide range of applications for research and fraud detection

A

Data mining

156
Q

An insurance marketing system under which producers (agents, or brokers), who are independent contractors, sell insurance, usually as representatives of several unrelated insurers

A

Independent agency and brokerage marketing system

157
Q

An insurance marketing system under which agents contract to sell insurance exclusively for one insurer (or for an associated group of insurers)

A

Exclusive agency marketing system

158
Q

An insurance marketing system that uses sales agents (or sales representatives) who are direct employees of the insurer

A

Direct writing marketing system

159
Q

An insurance distribution channel that markets directly to the customer through such distribution channels as mail, telephone, or the internet

A

Direct response distribution channel

160
Q

A type of group marketing that targets carious groups based on profession, association, interests, hobbies, and attitudes

A

Affinity marekting

161
Q

In general, the tendency for people with the greatest probability of loss to be the ones most likely to purchase insurance.

A

Adverse selection

162
Q

The number of losses that occur within a specified period

A

Loss frequency

163
Q

The amount of loss, typically measured in dollars, for a loss that has occurred

A

.Loss severity

164
Q

A review of underwriting files to ensure that individual underwriters are adhering to underwriting guidelines

A

Underwriting audit

165
Q

Expenses that remain the same, in the short term, regardless of the amount of business an insurer writes.

A

Fixed costs

166
Q

Expenses that change relative to premium volume increases or decreases

A

Variable costs

CPCU 552 (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions