Exam 25: Insurance Operations

Individuals who are insured under a managed health care plan can usually choose any provider of health care services.

____ effectively reallocates a portion of an insurance company's return and risk to other insurance companies.

Property and casualty (PC) insurance companies may use cash flow underwriting, in which they tend to lower their premium prices as interest rates rise.

The primary source of funds for a life insurance company income is

Real estate values usually have little impact on the market value of a life insurance company's asset portfolio and only affect property and casualty insurance companies.

Bond insurance is available only for corporate bonds and not for municipal securities.

____ insurance provides insurance for a policyholder only over a specified period.

____ are the most popular assets of life insurance companies.

____ insurance covers losses due to dishonest employees.

_____ insurance provides a financial payout if specified employees of a business become disabled or die.

The ____ facilitates cooperation among the various state agencies whenever an insurance issue is a national concern.

Under ____, the benefits awarded by the life insurance company to a beneficiary vary with the assets backing the policy.

Those insurance companies whose claims are ____ predictable need to maintain ____ liquidity.

Which of the following is a difference in characteristics between life insurance companies and property and casualty insurance companies?

Mortgage insurance protects:

The adverse selection problem as related to the insurance industry means that people who have insurance are less likely to suffer losses than people who do not have insurance.