Rmi 211 - Study guides, Class notes & Summaries

Enterprise Risk - encompasses all major risks faced by a business firm, which include: pure risk, speculative risk, strategic risk, operational risk, and financial risk Expense Loading - the amount needed to pay all expenses, including commissions, general administrative expenses, state premium taxes, acquisition expenses, and an allowance for contingencies and profit Admitted Assets - assets that an insurer can show on its statutory balance sheet in determining its financial condition Ad...

RMI 211 Exam 4 1. A contingency beneficiary in a life insurance policy has the right to: - ️ Receive the policy proceeds if the primary beneficiary dies before the insured. 2. A legal reserve in life insurance is a result of: - ️ Excess premiums in the early policy years being invested at compound interest. 3. All of the following are nonforfeiture options found in cash value life insurance policies EXCEPT: - ️ Reduction of premiums. 4. All of the following are requirements that mu...

RMI 211 Exam 2 Review Correct Questions and Types of Private Insurers - ANSWER Stock Insurers Mutual Insurers Reciprocal exchanges Lloyd's of London Blue Cross Blue Shield plans Health maintenance organizations (HMOs) Stock Insurers - ANSWER Owned by Stockholders, publicly traded and goal is to profit shareholders Mutual Insurers - ANSWER Owned by policyholders, and goal is to be there for their policy holders Fraternal Insurer - ANSWER insures members of a private nonprofit organ...

RMI 211 Mock Test Questions and Answers B - Answer️️ -1) A family's automobile that is a total loss as a result of a collision is an example of which of the following types of risk? I. Speculative risk II. Diversifiable risk A) I only B) II only C) both I and II D) neither I nor II B - Answer️️ -2) All of the following are programs to insure nondiversifiable risks EXCEPT A) federal flood insurance. B) auto physical damage insurance. C) Social Security. D) unemployment insu...

RMI 211 MSU Exam 1 with Complete Solutions

RMI 211 MSU Exam 1 Complete Answers Peril: Cause of a potential loss. Hazard: A condition that increases the frequency or severity of potential losses. Chance of Loss: The likelihood that a specific event will take place. Pure Risk: A scenario where only the outcomes of either loss or no loss exist. Objective Probability: The relative frequency of an event occurring over the long term, based on the assumption that there are infinitely many observations and that the underlying conditi...

Duplication - having back-ups or copies of important documents or property available in case a loss occurs Pre-Loss Objectives - -Prepare for potential losses in the most economical way -Reduce anxiety -Meet any legal obligations Risk Management - a process that identifies loss exposures faced by an organization and selects the most appropriate techniques for treating such exposures Loss Exposure - any situation or circumstance in which a loss is possible, regardless of whether a loss oc...

RMI 211 EXAM 1 PRACTICE QUESTIONS AND ANSWERS What is Risk? - Answer️️ -Uncertainty regarding loss Objective Risk - Answer️️ -the relative variation of actual loss from expected loss Subjective Risk - Answer️️ -uncertainty based on a person's mental condition or state of mind (difficult to measure) objective probability - Answer️️ -Likelihood that a specific result will occur, based on hard facts and numbers a priori - Answer️️ -by logical deduction such as in games ...

Types of Private Insurers - ANSWER Stock Insurers Mutual Insurers Reciprocal exchanges Lloyd's of London Blue Cross Blue Shield plans Health maintenance organizations (HMOs) Stock Insurers - ANSWER Owned by Stockholders, publicly traded and goal is to profit shareholders Mutual Insurers - ANSWER Owned by policyholders, and goal is to be there for their policy holders Fraternal Insurer - ANSWER insures members of a private nonprofit organization (religious or social) Llyod's of...