C81 Quiz 7
Insurance Underwriting and Premiums Quiz
Test your knowledge on the fundamentals of insurance underwriting, rating, and policy issuance with our comprehensive quiz. This quiz is designed for individuals interested in understanding how insurance policies are evaluated and priced.
Key topics covered include:
- Insurance applications
- Premium calculations
- Mortgage clauses
- Ratemaking processes
All of the information required to underwrite, rate and issue a policy is contained in:
The insurance application
The insurance act
The policy wording
The certificate of insurance
The calculation of premiums for most kinds of insurance is based upon the application of the:
Probability theory
Statistics forcasting
Past claims total
Client history
Rate can be defined as:
The policy premium
The price of a unit of insurance for a period of one year
$100 worth of insurance
The amount due at policy issue
The _______________ is the amount of money an insurance company charges to provide coverage for a specific risk or policy term.
Premium
Policy rate
Amount due to date
Chargeable amount
A mortgage clause:
Gives the same protection as a loss payable clause
Bestows the rights and obligations on mortgages and insureds
Entitles mortgagee to insurance payment even when insureds have prejudiced their own rights under the policy
Is an agreement between the mortgagee and the insured
The broker currently receiving a commission to handle a policy is the:
Broker of record
Commission broker
Portfolio broker
Broker of book
The two types of applications are:
Expressed and implied
Oral and written
Electronic and paper
Electronic and written
Which of the following is NOT an advantage of a written application:
Recording the information once, eliminating risk of errors
Having documents for cases where the law requires it
Reducing delays and improving customer service
Gives insurers opportunities to waive any Statutory Conditions of insurance contract
Which of the following is NOT one of the eight (8) application questions
Named insured
Subject of insurance
Financials and income
Policy term
On the application, the broker’s report is:
Opportunity for brokers to present additional information about the client
Where the brokers attach credit report
Where brokers attach legal court documents of title
Where the broker gives a professional summary of his or her own insurance experience
Which of the following is NOT a part of the ratemaking process:
Classify risk
Calculate pure premium
Gather statistics on past losses
Calculate commission results
Additional charge included in an insurance rate to reflect a hazard not contemplated in the basic rate is:
Inflation surcharge
Loading
Loading reserve
Premium surcharge
_________ is when some classes of business is rated individually
Manual rating
Facultative rating
Market rating
Industry class rating
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