Study 2 Trivia Time

Question 1

What is the primary fxn of insurance?

a) Prevent risk
c) Cause risk
c) Spread risk
d) Eliminate risk

Answer 1

Spread risk

Losses of the few are shared by many who pay premiums

Question 2

The accumulated “pool” of premium money is managed by the

a) Underwriter
b) Insurer
c) Insured
d) Loss adjuster

Answer 2

b) Insurer

Question 3

What is a broker?

a) A licensed independent person or firm that assists in arranging insurance contracts btwn insurers and clients
b) An insurance company employee who investigates claims of the policy owner for approval, adjustment, or denial
c) A person employed by the insurer to review loss statistics and adjust premium charges accordingly
d) An employee of the insurer who settles losses on the insurer’s behalf

Answer 3

a) A licensed independent person or firm that assists in arranging insurance contracts btwn insurers and clients

Question 4

General insuranceis often referred to as ____ insurance

a) Life and health insurance and general insurance
b) Property and casualty
c) Property and automobile
d) Personal and liability

Answer 4

b) Property and casualty

Question 5

What type of insurance indemnifies owner or user of property for its loss, or loss of its income-producing ability?

a) Personal insurance
b) Casualty insurance
c) Property insurance
d) Liability insurance

Answer 5

c) Property insurance