Question 1

What is the effect when the most favorably situated exposures leave a (potential) insurance pool?

Accepted Answer

A)  Premiums go down. 
B)  Nothing 
C)  The cost of insurance needs to be borne by more policyholders. 
D)  The cost of insurance needs to be borne by fewer policyholders. 
A)  Premiums go down. 
B)  Nothing 
C)  The cost of insurance needs to be borne by more policyholders. 
D)  The cost of insurance needs to be borne by fewer policyholders.

Question 2

All the following statements are true concerning mutual insurance companies except:

Accepted Answer

A)  they may pay dividends 
B)  they are owned by their policyholders 
C)  they are legally organized as perpetual partnerships 
D)  they are nonprofit 
A)  they may pay dividends 
B)  they are owned by their policyholders 
C)  they are legally organized as perpetual partnerships 
D)  they are nonprofit

Question 3

Both stock and mutual insurance companies are incorporated.

Accepted Answer

A) True 
 B)False

What is the effect when the most favorably situated exposures leave a (potential) insurance pool?

All the following statements are true concerning mutual insurance companies except:

Both stock and mutual insurance companies are incorporated.

Introduction to Enterprise Risk Management and Insurance

Risk Identification

Risk Assessment and Pooling

Risk-Handling Techniques: Loss Control, Risk Transfer, and Loss Financing

Risk-Handling Techniques: Diversification and Hedging

Fundamentals of Insurance

Insurance Functions

Insurance Markets: Economics and Issues

Insurance Regulation

Insurance Contracts

The Personal Auto Policy

Homeowners Insurance

Professional Financial Planning

Life Insurance Policies

Standard Life Insurance Contract Provisions and Options

Annuities

Health Insurance and Disability Income

Employee Benefits

Social Security

Unemployment and Workers Compensation Insurance

Commercial Property Insurance

Commercial Liability Insurance

Filters

Exam 7: Insurable Perils and Insuring Organizations

What is the effect when the most favorably situated exposures leave a (potential) insurance pool?

All the following statements are true concerning mutual insurance companies except:

Both stock and mutual insurance companies are incorporated.

Introduction to Enterprise Risk Management and Insurance

Risk Identification

Risk Assessment and Pooling

Risk-Handling Techniques: Loss Control, Risk Transfer, and Loss Financing

Risk-Handling Techniques: Diversification and Hedging

Fundamentals of Insurance

Insurance Functions

Insurance Markets: Economics and Issues

Insurance Regulation

Insurance Contracts

The Personal Auto Policy

Homeowners Insurance

Professional Financial Planning

Life Insurance Policies

Standard Life Insurance Contract Provisions and Options

Annuities

Health Insurance and Disability Income

Employee Benefits

Social Security

Unemployment and Workers Compensation Insurance

Commercial Property Insurance

Commercial Liability Insurance

Filters