Exam (elaborations)
RMIN 4000 Test 2 UGA Marc Ragin Questions and Answers Fully Solved
- Course
- Institution
RMIN 4000 Test 2 UGA Marc Ragin
[Show more]
Content preview
RMIN 4000 Test 2 UGA Marc RaginGross Premium - answer Total premium charged per unit of coverage
Risk Charge - answer Estimation of risk of the insurer. 3* SD/ per person
Admin Costs - answer Money spent in daily operations of company. Ex. Salaries,
overhead, marketing
Expected Loss - answer Expected frequency * expected severity
Fortuitous - answer Random, accidental, no control over E(F)/E(S)
Underwriting - answer process of classifying a risk
Risk based pricing - answer Higher the risk you are, the more the insurer will charge
you
Determinable loss - answer easy to verify that a loss occurred
Measurable loss - answer easy to assign a $ value to a loss
Adverse Selection - answer High risks most likely to buy coverage, at the lowest price
Asymmetric info - answer insured has more info about their risk and are unwilling to give
up that info
Principle of Indemnity - answer The insurer agrees to pay no more than the actual
amount of the loss
Principle of Insurable Interest - answer The insured must be in a position to lose
financially if a covered loss occurs
Principle of subrogation - answerinsurer can go after a responsible 3rd party to collect
claim payments made to their insured
Principle of Utmost good faith - answerParties to an insurance contract are held to a
higher standard of honesty than parties to non-insurance contracts
Representation - answera statement made by the applicant
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 julianah420. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now