RMI 310 Final Exam || with 100% Errorless Answers.
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Course
RMI 310 F
Institution
RMI 310 F
The insurance industry is highly regulated, and the expense associated with compliance can be substantial. To the extent that these expenses increase the cost of insurance, they create a conflict between the insurer's profit goal and the insurer's goal of... correct answers Meeting customers needs
...
RMI 310 Final Exam || with 100% Errorless Answers.
The insurance industry is highly regulated, and the expense associated with compliance can be
substantial. To the extent that these expenses increase the cost of insurance, they create a conflict
between the insurer's profit goal and the insurer's goal of... correct answers Meeting customers
needs
Which one of the following statements is correct regarding internal constraints insurers face?
correct answers Financial constraints can affect insurers' ability to achieve profit goals
Due to the possibility of an environmental pollution exposure resulting in extensive losses,
several insurers in a particular state have joined together to insure the exposure. No single insurer
was willing to insure the entire risk. This insurance arrangement is typical of... correct answers
An insurance pool
One of the most telling measurements of customer satisfaction is... correct answers Retention
ratio
To determine profitability, an insurer should consider whether growth resulted from rate
increases or new policies. Insurers should be concerned with growth due to which one of the
following? correct answers Inadequate insurance rates
The difference between underwriting gain or loss and operating gain or loss is that operating gain
or loss includes... correct answers Investment income
Which one of the following best describes a factor in determining the types of investments that
an insurer acquires? correct answers The nature of the risks that it assumes
Which one of the following departments provides information to the underwriting department to
assist in selecting and rating risks? correct answers Risk control
The universal connectivity that allows people to interact with devices and for those devices to
meaningfully interact with each other without human interaction is known as... correct answers
The Internet of Things
Which one of the following types of insurance has been particularly influenced by data analytics
and telematics devices? correct answers Automobile
Solvency regulation protects policyholders against the risk that insurers? correct answers Will be
unable to meet their financial obligations
Which one of the following cases is an example of why insurance needs to be regulated to
maintain insurer solvency? correct answers Gulford Insurance Company goes out of business
because it did not have enough surplus or reinsurance to cover its hurricane losses
, The major source of funding for state insurance departments comes from... correct answers State
premium taxes
Under the insurance commissioner's direction, a state insurance department engages in a variety
of regulatory activities that typically include all of the following, EXCEPT: correct answers
Enacting laws regulating the formation of insurers
A risk retention group can write insurance only for its members, and it may write... correct
answers Only commercial liability insurance
Which one of the following is a part of the solvency core principle of exiting the market and
receivership? correct answers Solvency is defined and a receivership scheme established to
ensure the payment of insured obligations of insolvent insurers subject to appropriate restrictions
and limitations
Which one of the following is a method used by state regulators to ensure solvency of admitted
insurers? correct answers Requiring each insurer to meet minimum financial requirements
A producer practice that violates most state's unfair trade practices acts is... correct answers
Twisting
In order to sell insurance to a large commercial organization, producer James gave the applicant
a portion of his commission to induce the business to purchase a policy. This practice that is
currently illegal in almost all states is known specifically as... correct answers Rebating
Unfair Claims Practices require an insurer to approve or deny coverage of a claim within a
reasonable period after the completion of... correct answers A proof-of-loss statement
Which one of the following insurance customers would fit in the middle market group? correct
answers A one-location furniture manufacturer with a risk manager on staff
After being approached by several different insurance companies, Charles Construction decided
to market its program at renewal time. The contractor was offered competitive proposals from
four different insurers. The proposals included options with lower premiums than the expiring,
and also options offering higher limits of insurance. Which one of the following types of
underwriting cycles is Charles Construction experiencing? correct answers soft market
A number of unique factors shape the insurance marketplace. Which one of the following factors
is most likely to lead to insurer insolvency, withdrawal from certain geographic markets, and
reinsurance shortages? correct answers Unanticipated catastrophic losses
Which one of the following statements is true? correct answers A marketing plan identifies the
product or service to be promoted and the customers to be targeted
An insurer's marketing department is working with the underwriting department to determine
what characteristics of middle market businesses result in the most profitable commercial
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