Principles and Structures of Insurance Companies Quiz Test your knowledge of insurance industry fundamentals with questions on underwriting, reinsurance, deductibles, and more in this actuarial science quiz.
#1
To provide loans to individuals
To sell goods and services
To protect against financial losses
To offer investment opportunities
#2
Life insurance
Health insurance
Car insurance
Real estate insurance
#3
The process of transferring risk from one party to another
The practice of charging higher premiums to high-risk individuals
The combination of premiums from many policyholders to pay for losses
The process of underwriting insurance policies
#4
The amount of money paid by the insured party
The premium rate set by the insurance company
The cause of potential loss or damage
The duration of coverage provided by the policy
#5
Coverage agreement
Policy
Claim form
Beneficiary document
#6
The process of calculating premiums
The process of issuing insurance policies
The process of assessing risk and determining eligibility
The process of filing claims
#7
The maximum amount an insurance company will pay for a claim
The portion of a claim that the insured must pay before the insurance company covers the rest
The percentage of coverage provided by the insurance policy
The duration of time before coverage takes effect
#8
The insurance premium paid by the policyholder
The physical property covered by the insurance policy
The cause of potential loss, such as fire or theft
The amount of coverage provided by the insurance policy
#9
To investigate insurance claims
To develop marketing strategies
To assess risk and set premium rates
To process insurance applications
#10
Insurance purchased by insurance companies to limit their own risk exposure
Insurance purchased by individuals to cover unusual risks
Insurance sold to individuals who have been denied coverage elsewhere
Insurance sold to cover damages caused by natural disasters
#11
The intentional creation of risky situations by the insured party
The inability to obtain insurance coverage due to high risk
The uncertainty surrounding the likelihood of a loss occurring
The tendency of individuals to take greater risks when they are insured
#12
The process of transferring risk to another party
The process of an insurer assuming the legal rights of the insured to recover expenses from a third party
The process of adjusting insurance claims
The process of reinsuring a portion of a policy
#13
The obligation of insurance agents to act in the best interests of policyholders
The responsibility of insurance companies to disclose all policy details to policyholders
The legal obligation of insurance companies to maximize profits for shareholders
The duty of insurance companies to maintain financial reserves to cover claims
#14
To calculate the profitability of an insurance company
To determine the maximum coverage amount for a policy
To assess the value of a claim
To calculate the premium for a new insurance policy
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