General insurance companies hold: a smaller number of short-term assets than life insurance companies. a greater number of short-term assets than life insurance companies. approximately the same number of short-term assets as life insurance companies. only long-term assets.
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General insurance companies hold:
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a smaller number of short-term assets than life insurance companies. |
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a greater number of short-term assets than life insurance companies. |
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approximately the same number of short-term assets as life insurance companies. |
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only long-term assets. |
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- Which of the following would best describe the insurance in risk, to an insurer resulting from a moral risk? Policyholder’s history of prior losses in high risk crime zones Policyholders lack of proper security measures to protect the insurer property from theft Policyholder’s criminal record involving crimes related to theft Policyholder’s lack of concern about protecting the insured propertyRisk selection" refers to -- a. the incentive of insurance companies to avoid enrolling people who are in worse health and likely will require costly medical care. b. the phenomenon of individuals waiting until they are sick before purchasing health insurance. c. the process by which the Federal government identifies individuals at greatest risk for needing costly health care and provides them special high-risk insurance coverage. d. the incentive of shareholders to avoid investing in insurance companies which insure the most high risk patients.Which of the following would be a covered loss under the medical payment coverage of a commercial general liability policy? A delivery person trips and falls on the insured premises A tenant of the insured falls in the insured parking lot An employee is injured while working on the insured premises An employee is injured while playing basketball on the insured premises during a break
- Insurance producer license fees are deposited into which of the following accounts? The California General Revenues Fund The Insurance Producer Administrative Fund The Joint Underwriting Association The Lite and Health Insurance Guaranty AssociationWhich of the following is considered insurance producer misrepresentation?A. Switching from one insurance coverage to a better one.B. Declaring that dividends will be paid. C. Representing many insurance companies simultaneously D. Requiring an insurance applicant to pay their premium to the insurance company.Financial institutions such as banks are prohibited from investing their funds in the stock market or purchasing financial securities. *True or False
- Which of the following statements regarding a nonresident insurance producer is CORRECT? 1.The producer must hold a similar license in the state of residence. 2. Policies the producer writes in Illinois must be countersigned. 3.The producer must complete pre-licensing and continuing education courses in texas. 4.The producer must maintain a minimum surety bond of $10,000.Which of the following statements regarding a nonresident insurance producer is CORRECT? 1.The producer must hold a similar license in the state of residence. 2. Policies the producer writes in Illinois must be countersigned. 3.The producer must complete pre-licensing and continuing education courses in Illinois. 4.The producer must maintain a minimum surety bond of $10,000.The difference between the actuarily fair price for insurance and the price a risk-averse individual is willing to pay to fully insure is called a-insurance benefit b-risk aversion c-the risk premium d-risk profit
- Which of the following assertions about a Whole Life insurance policy is TRUE?A. Premium payments may be increased or decreased at the premium payer's discretion.B. A person's beneficiary designation can only be changed if that individual passes a medical examination. C. The policy owner can borrow against the policy's cash value. D. In order to receive the death benefit, the specified beneficiary must provide proof of ongoing insurable interest in the insured's life.explain the difference between moral hazard and adverse selection using the example of health insurance. what are the consequences of each of them for the functioning of private insurance markets?John Jones carries a Homeowners Policy on his dwelling, with Easy Money Mortgage Company listed as a mortgagee. Jones tells his agent to cancel the policy because the property has been sold. The agent cancels the policy and Jones obtains a return of the premium. About 6 months later, when the building burns, Easy Money Mortgage Company makes claim for recovery. Investigations reveal the dwelling was not sold and Jones canceled the policy without the mortgage company’s knowledge. Discuss the liability of the insurer and the agent.