NSG 527 Final Questions with 100% Correct Answers | Latest Version 2024 | Verified
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Course
NSG 527
Institution
NSG 527
Which of these characteristics belong in a broadened, inclusionary definition of family? Select all that
apply
A. composed of one or more persons
B. geographic dispersion
C. emotional involvement and commitment
D. Sense of identity as a family - c. Emotional involvement and commitment
d. Sen...
Which one of the following is an opportunity cost of insurance? - ✔✔An insured's funds that
could be invested elsewhere if purchasing insurance were not necessary is an example of an
opportunity cost of insurance.
Which one of the following statements is correct regarding the benefits of insurance? -
✔✔Contractors must usually provide evidence of liability insurance before a construction
contract is granted.
Investment income helps keep insurance premiums at a reasonable level.
Which one of the following describes the characteristics of a mutual insurance company? -
✔✔C. A corporation owned by policyholders that provides insurance to its policyholders.
The primary role of insurance is to - ✔✔D. Indemnify individuals and organizations for covered
losses.
Sometimes the existence of insurance encourages losses. The result of this phenomenon is that it
- ✔✔D. Increases the total cost of insurance.
Sally is a recent college graduate who lives in the suburbs and drives to work daily in the city.
She recognizes that owning a car creates both property damage and liability exposures for her
and at the same time she has the burden of student loans. For someone in Sally's circumstances
,the most practical risk management technique for dealing with her auto-related loss exposures is
- ✔✔D. Risk transfer.
Insurance is not the only risk management transfer technique. When circumstances are
appropriate, transfer can be accomplished through - ✔✔A. Noninsurance transfer techniques.
Retention is often used in combination with insurance as a way of treating loss exposures. One of
the major downsides of individuals using retention alone is - ✔✔A. The potential for financial
ruin.
From a risk management viewpoint, insurance is used to - ✔✔B. Transfer the cost of losses.
Some loss exposures are not easy to retain, avoid, or control. Which one of the following risk
management techniques is frequently used to treat such exposures? - ✔✔Transfer
A small business owner concerned about something happening and not being able to work or
earn a living for an extended period of time due to an accident should purchase - ✔✔D.
Disability insurance.
Coverage for miscellaneous types of property such as movable property, goods in domestic
transit, and property used in transportation and communication, typically is provided by -
✔✔Correct. Coverage for miscellaneous types of property, such movable property, goods in
domestic transit, and property used in transportation and communication, typically is provided by
inland marine insurance.
, Which one of the following is true regarding a homeowners policy? - ✔✔Correct. A
homeowners policy provides both property and liability coverage. This includes coverage for
theft of personal property as well as perils such as wind and lightning.
Insurance customers' loss exposures arise out of their activities, as well as - ✔✔Correct.
Insurance customers' loss exposures arise out of their activities as well as their ownership of
various property.
Life insurance that provides coverage for a specified period with no cash value is called -
✔✔Correct. Life insurance that provides coverage for a specified period with no cash value is
called term insurance.
A mutual insurance company is owned by - ✔✔Policyholders
A stock insurer differs from a reciprocal insurance exchange in which one of the following
ways? - ✔✔A. Stockholders own a stock insurer. Subscribers own a reciprocal insurance
exchange.
A company interested in improving cash flow should consider meeting its insurance needs
through which one of the following types of insurance organizations? - ✔✔Correct. With a
captive, instead of paying premiums to an unrelated insurer, a company can invest its funds until
they are needed for claims.
All of the following are types of private insurers, EXCEPT: - ✔✔Correct. A state workers
compensation fund is not a private (nongovernmental) insurer.
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