AU 60 Test Questions and Answers All Correct
What is an exposure unit? - Answer- A unit used to measure the potential loss in insurance.
What is an express employment agreement? - Answer- An employment agreement that is explicitly stated.
What is an implied employment agreement? - Answer- A...
AU 60 Test Questions and
Answers All Correct
What is an exposure unit? - Answer- A unit used to measure the potential loss in
insurance.
What is an express employment agreement? - Answer- An employment agreement that
is explicitly stated.
What is an implied employment agreement? - Answer- An employment agreement that
is not explicitly stated.
What are insurance implications related to employee status? - Answer- Implications
arising from leasing workers to client companies.
What is a specialty contractor? - Answer- A subcontractor who specializes in a
particular kind of work.
What is a permanent workforce? - Answer- The employees leased by a PEO to client
companies.
What is Individual risk premium modification plan (IRPM)? - Answer- A rating plan that
awards debits and credits based on specific categories to modify the final premium.
What is Expense modification? - Answer- An insurance rating plan that modifies the
expense portion of an insured's rate.
What is Rebating? - Answer- The practice of giving a portion of the producer's
commission or some other financial advantage to an individual as an inducement to
purchase the policy.
What is Large deductible plan? - Answer- A rating plan whereby the insured assumes a
substantial per accident or per occurrence deductible.
What is Moral hazard? - Answer- A condition that increases the likelihood of intentional
loss.
What is Morale hazard (attitudinal hazard)? - Answer- A condition of carelessness or
indifference that increases the frequency or severity of loss.
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