CPCU 520 Final Exam Questions and Answers
What is the formula for the GAAP method for determining return on equity
Net Income / Average Owners Equity
State insurance departments enforce insurance laws enacted by the
state legislature
Previous
Play
Next
Rewind 10 seconds
Move ...
CPCU 520 Final Exam Questions and
Answers
What is the formula for the GAAP method for determining return on equity - answer
Net Income / Average Owners Equity
State insurance departments enforce insurance laws enacted by the - answer state
legislature
What are the underwriting profitability functions of an insurer? - answer guarding
against adverse selection, ensuring adequate policyholders' surplus, and enforcing
underwriting guidelines.
what is the co-participation provision of a primary insurer in it's reinsurance program -
answer a provision in a reinsurance agreement that requires the primary insurer to
retain a specified percentage of the losses that exceed its attachment point
Generally the largest liability on the insurer's balance sheet and a significant part of an
insurer's financial condition are the - answer Loss reserves for future claim
payments.
What are the steps in the claims handling process? - answer acknowledging and
assigning the claim, identifying the policy and setting reserves, contacting the insured or
the insured's representative, investigating and documenting the claim, determining the
cause of loss, liability, and the loss amount.
What is affinity marketing - answer group marketing that targets various groups
based on profession, association, interests, hobbies, and attitudes.
Computer processing or output that simulates human reasoning or knowledge is
referred to as - answer artificial intelligence
A commercial insurer has historically targeted small businesses. It is considering
expanding its market to middle market organizations. To succeed, the insurer will need
to develop a level of expertise in which one of the following areas? - answer Risk
financing alternatives
When using prospective loss costs supplied by advisory organizations to produce rates,
each insurer must apply its own - answer loss cost multiplier
A primary insurer is able to obtain surplus relief through reinsurance by - answer
Receiving ceding commissions to offset policy acquisition expenses
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Pogba119. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
