瑞達(dá)rejda保險(xiǎn)教材英文練習(xí)題7

1、(Rejda)PrinciplesofRiskManagementandInsurance,11eChapter7FinancialOperationsofInsurers1) LMNMutualInsuranceCompanyhastotalliabilitiesof$300million.Thecompanyhastotalassetsof$380million.WhatisLMN'spolicyholders'surplusA) $680millionB) $340millionC) $80millionD) -$80millionAnswer:CQuestionStat

2、us:PreviousEdition2) Allofthefollowingwouldappearintheassetsectionofaninsurancecompany'sbalancesheetEXCEPTA) lossreserves.B) bonds.C) commonstock.D) realestate.Answer:AQuestionStatus:PreviousEdition3) Underonemethodofestimatingalossreserve,thereserveisbasedonlifeexpectancy,durationofdisability,a

3、ndsimilarfactors.ThismethodofestimatinglossreservesiscalledtheA) judgmentmethod.B) tabularvaluemethod.C) lossratiomethod.D) averagevaluemethod.Answer:BQuestionStatus:Revised4) ReasonsfortheunearnedpremiumreserveincludewhichofthefollowingI) Topaylossesthatoccurduringthepolicyperiod.J) .Topaypremiumre

4、fundstopolicyholdersintheeventofcancellation.K) IonlyL) IIonlyM) bothIandIIN) neitherInorIIAnswer:CQuestionStatus:PreviousEdition5) Apropertyandcasualtyinsurer'slossreserveincludesestimatesforallofthefollowingEXCEPTA) claimsanticipatedbutnotyetincurred.B) claimsreportedandadjustedbutnotyetpaid.C

5、) claimsreportedandfiledbutnotyetadjusted.D) claimsincurredbutnotyetreportedtothecompany.Answer:AQuestionStatus:PreviousEdition6) Whichofthefollowingstatementsaboutmethodsforestimatinglossreservesforpropertyandcasualtyinsurersis(are)trueI) Thejudgmentmethodinvolvestheuseofastatutoryformulatoestimate

6、thelossreserve.J) .Theaveragevaluemethodisusedwhenthenumberofclaimsislargeandtheclaimsaresettledquickly.K) IonlyL) IIonlyM) bothIandIIN) neitherInorIIAnswer:BQuestionStatus:PreviousEdition7) Oneitemthatappearsonaninsurancecompany'sfinancialstatementsisaliabilitythatrepresentsanestimateoftheclaim

7、sreportedandadjustedbutnotyetpaid,claimsreportedandfiledbutnotyetadjusted,andclaimsincurredbutnotyetreportedtothecompany.Thisliabilityiscalledtheinsurer'sA) netincome.B) lossreserve.C) admittedassets.D) unearnedpremiumreserve.Answer:BQuestionStatus:PreviousEdition8) Alossreserveestablishedforeac

8、hindividualclaimwhenitisreportedtoapropertyandcasualtyinsurancecompanyiscalla(n)A) admittedasset.B) incurred-but-not-reported(IBNR)reserve.C) unearnedpremiumreserve.D) casereserve.Answer:DQuestionStatus:PreviousEdition9) Allofthefollowingitemswouldappearintheincomesectionofaninsurancecompany'sin

9、comeandexpensestatementEXCEPTA) gainonsaleofsecurities.B) commonstockdividends.C) commissions.D) premiums.Answer:CQuestionStatus:PreviousEdition10) JKLInsuranceCompanyreportedthefollowinginformationonitsaccountingstatementslastyear:PremiumsWritten$90,000,000LossAdjustmentExpenses$5,000,000Underwriti

10、ngExpenses$30,000,000PremiumsEarned$100,000,000IncurredLosses$70,000,000WhatwasJKL'slossratiolastyearA) percentB) percentC) percentD) percentAnswer:BQuestionStatus:PreviousEdition11) JKLInsuranceCompanyreportedthefollowinginformationonitsaccountingstatementslastyear:Premiums Written$90,000,000Lo

11、ssAdjustmentExpenses$5,000,000UnderwritingExpenses$30,000,000PremiumsEarned$100,000,000IncurredLosses$70,000,000WhatwasJKL'sexpenseratiolastyearA) percentB) percentC) percentD) percentAnswer:CQuestionStatus:PreviousEdition12) JKLInsuranceCompanyreportedthefollowinginformationonitsaccountingstate

12、mentslastyear:PremiumsWritten$90,000,000LossAdjustmentExpenses$5,000,000UnderwritingExpenses$30,000,000PremiumsEarned$100,000,000IncurredLosses$70,000,000WhatwasJKL'scombinedratiolastyearA)B)C)D)Answer:DQuestionStatus:PreviousEdition13) Whichofthefollowingstatementsaboutpropertyandcasualtyinsura

13、ncecompanyoperatingresultsis(are)trueI) Aninsurancecompanycanhaveacombinedratiogreaterthan1(or100percent)andstillberequiredtopayincometaxes.J) .Byallmeasures,thepropertyandcasualtyinsuranceindustryishighlyprofitablewhencomparedtootherindustries.K) IonlyL) IIonlyM) bothIandIIN) neitherInorIIAnswer:AQ

14、uestionStatus:PreviousEdition14) Lifeinsurancepolicyownersmayborrowthecashvaluefromtheirlifeinsurancepolicies.Wherearelifeinsurancepolicyloansshownonalifeinsurancecompany'sfinancialstatementsA) asanassetB) asaliabilityC) asincomeD) asanexpenseAnswer:AQuestionStatus:PreviousEdition15) MedProfInsu

15、rancemarketsmedicalmalpracticeinsurance.Thecompany'scombinedratioin2009was.Itsexpenseratiowas.Whatwasthecompany'slossratioA)B)C)D)Answer:BQuestionStatus:PreviousEdition16) Toprotectpolicyholders,statelawsplacelimitationsonalifeinsurancecompany'sinvestments.Theassetsbackinginterest-sensit

16、iveproducts,suchasvariablelifeinsuranceandvariableannuities,arenotsubjecttotheserestrictions.Assetsbackinginterest-sensitiveproductsareplacedinaspecialaccountcalledthelifeinsurer'sA) policyreserveaccount.B) policyloanaccount.C) separateaccount.D) policyholderssurplus.Answer:CQuestionStatus:Previ

17、ousEdition17) Whichofthefollowingstatementsis(are)trueconcerninginvestmentsofpropertyandcasualtyinsurersandlifeinsurersI. Propertyandcasualtyinsurancecompaniesplacegreateremphasisonliquiditythandolifeinsurers.II. Lifeinsurancecompanyinvestmentsare,onaverage,oflongerdurationthanpropertyandcasualtyins

18、urancecompanyinvestments.A) IonlyB) IIonlyC) bothIandIID) neitherInorIIAnswer:CQuestionStatus:PreviousEdition18) AllofthefollowingareexpensesoflifeinsurancecompaniesEXCEPTA) maturedendowments.B) surrenderbenefits.C) disabilityincomepayments.D) realizedcapitalgains.Answer:DQuestionStatus:PreviousEdit

19、ion19) AllofthefollowingstatementsaboutbusinessobjectivesindesigningaratingsystemaretrueEXCEPTA) Theratingsystemshouldencouragelosscontrolactivities.B) Theratingsystemshouldbeindependentoflong-runchangesineconomicconditions.C) Theratingsystemshouldbesimpletounderstand.D) Theratingsystemshouldbestabl

20、eovershortperiodssothatconsumersatisfactioncanbemaintained.Answer:BQuestionStatus:PreviousEdition20) AllofthefollowingstatementsaboutregulatoryobjectivesofinsuranceratemakingaretrueEXCEPTA) Onepurposeofrateadequacyistomaintainthesolvencyofinsurers.B) Ratesunfairlydiscriminateiflossexposuresthataresi

21、milarwithrespecttolossesandexpensesarechargedsubstantiallydifferentrates.C) Insurersknowinadvanceifthecoveragesmarketedwillbeprofitable,sorateregulationisnotneeded.D) Ratesareexcessiveifpolicyholdersarepayingsubstantiallymorethantheactualvalueoftheirprotection.Answer:CQuestionStatus:PreviousEdition2

22、1) TheunitofmeasurementusedinpropertyandcasualtyinsurancepricingiscalledtheA) unitrate.B) premium.C) exposureunit.D) experienceunit.Answer:CQuestionStatus:PreviousEdition22) Theportionofaninsurancepremiumallocatedtoexpenses,profit,andamarginforcontingenciesiscalledtheA) loading.B) purepremium.C) gro

23、sspremium.D) experiencerate.Answer:AQuestionStatus:PreviousEdition23) WhichofthefollowingstatementsaboutjudgmentratingistrueA) Itinvolvesthemanualratingofexposures.B) Itisusedwhenthelossexposuresaresodiversethataclassratecannotbecalculated.C) Itisaformofexperiencerating.D) Itisonlyusedwhencrediblelo

24、ssstatisticsareavailable.Answer:BQuestionStatus:PreviousEdition24) Underonetypeofmeritrating,theclassormanualrateisadjustedupwardordownwardbasedonpastlosshistory.ThistypeofmeritratingiscalledA)schedulerating.B) judgmentrating.C) experiencerating.D) retrospectiverating.Answer:CQuestionStatus:Previous

25、Edition25) AllofthefollowingstatementsaboutclassratingaretrueEXCEPTA) Exposureswithsimilarcharacteristicsareplacedinthesameunderwritingclass.B) Theratechargedforeachclassreflectstheaveragelossexperienceforthatclass.C) Thecomplexityofclassratingmakesitinappropriateforpersonallinescoverages.D) Itisbas

26、edontheassumptionthatfuturelossestoinsuredswillbedeterminedbythesameclassificationfactorscurrentlyinuse.Answer:CQuestionStatus:PreviousEdition26) Underthepurepremiummethodofdeterminingclassrates,thegrossrateisdeterminedbywhichofthefollowingformulasA) purepremium/(1+expenseratio)B) purepremium/(1-exp

27、enseratio)C) (1+purepremium)/expenseratioD) expenseratio/(1-purepremium)Answer:BQuestionStatus:PreviousEdition27) Theexpectedlossratioforaclassofbusinessis60percent.Whatchangewouldbeindicatedinthelevelofratesunderthelossratiomethodiftheactuallossratioturnedouttobe68percentA) percentincreaseB) percen

28、tincreaseC) percentincreaseD) percentincreaseAnswer:BQuestionStatus:PreviousEdition28) Whichofthefollowingstatementsaboutscheduleratingis(are)trueI) Itinvolvesthedeterminationofabasisrateforeachexposure,whichisthenmodifiedbycreditsordebits.J) .Itisbasedontheassumptionthatcertainphysicalcharacteristi

29、csoftheinsured'soperationswillinfluencetheinsured'sfuturelossexperience.K) IonlyL) IIonlyM) bothIandIIN) neitherInorIIAnswer:CQuestionStatus:PreviousEdition29) Whichofthefollowingstatementsaboutexperienceratingis(are)trueI) Theinsured'spastlossexperienceisusedtodeterminethepremiumforthen

30、extpolicyperiod.J) .Itsuseisgenerallylimitedtosmallfirmswhoseactualexperiencelackscredibility.K) IonlyL) IIonlyM) bothIandIIN) neitherInorIIAnswer:AQuestionStatus:PreviousEdition30) WhichofthefollowingstatementsaboutretrospectiveratingistrueA) Thepremiumforthecurrentperiodisdeterminedbythelossexperi

31、enceforpriorperiods.B) Thepremiumforthecurrentperiodisdeterminedbythelossexperienceduringthecurrentperiod.C) Thepremiumforfutureperiodsisdeterminedbytheaveragelossexperienceforthecurrentandpreviousperiods.D) Thepremiumforfutureperiodsisdeterminedbythelossexperienceforthecurrentperiod.Answer:BQuestio

32、nStatus:PreviousEdition31) MonopolyInsuranceistheonlycompanymarketingacertainlineofinsuranceinastate.Aftercomplaintsfromseveralconsumers,theStateInsuranceDepartmentinvestigatedMonopoly'srates.TheregulatorsdeterminedthatMonopolywastakingadvantageofbeingtheonlyinsurerofferingthelinebychargingmoret

33、handoubletheactuarialcostofthecoverage.WhichregulatoryratingobjectivewasMonopolyviolatingA) Ratesmustbeadequate.B) Ratesshouldencouragelosscontrol.C) Ratesmustnotbeexcessive.D) Ratesmustnotunfairlydiscriminate.Answer:CQuestionStatus:PreviousEdition32) SmallTownusedtobejustthat-asmalltown6milesfromLa

34、rgeCity.Overtheyears,theareabetweenSmallTownandLargeCityhasdeveloped,andnowSmallTownispartofthesuburbssurroundingLargeCity.AnautoinsurerthatoperatedintheareahadalargeincreaseinautoclaimsfromSmallTowninsureds.Theinsurerdidnotadjustitsrates,andthisyearwilllosemoneybecauseofclaimsattributabletohigherpo

35、pulationdensity.WhichbusinessratingobjectivedidthisinsurerfailtomeetA)simplicityB) stabilityC) responsivenessD) encouragementoflosscontrolAnswer:CQuestionStatus:PreviousEdition33) NathanwashiredasanactuarywithABCInsurance.Nathanwasaskedtocalculatetheannualpremiumforanewproductandtoexplainhiscalculat

36、ionstoABC'sdirectorofratemaking.Nathancalculatedthepurepremiumandpresentedthisvalueasthefinalpremium.AfterNathan'spresentation,thedirectorofratemakingsaid,"Youleftoutsomethingveryimportant.Ifwesellcoverageatthepurepremiumrate,we'llbeoutofbusinesssoon."WhatdidNathanoverlookinhis

37、calculationsA) loadingsB) theunderwritingcycleC) seasonalityofclaimsD) investmentincomeAnswer:AQuestionStatus:PreviousEdition34) XYZInsuranceCompanyexpects$500,000inclaimsandlossadjustmentexpensesforeach1,000propertiesthatitinsuresinacertaincategoryofbusinessinsurance.WhatpurepremiumshouldXYZchargef

38、oreachpropertyinsuredA) $B) $C) $D) $Answer:DQuestionStatus:PreviousEdition35) XYZInsuranceCompanyusesclassratingtodeterminetheratetochargeforinsurance.Foronetypeofinsurance,thepurepremiumXYZactuariescalculatedis$75perunit.IfXYZ'sexpenseratiois25percent,whatisthegrossrateforthiscoverageA)$B)$C)$

39、D)$Answer:DQuestionStatus:PreviousEdition36) Amanufacturingcompanyjusthiredanewriskmanager,andshehasinstitutedseveralemployeesafetyprograms.Shehaspersuadedtheinsurerwritingthecompany'sworkerscompensationinsurancetobasethepremiumonthecompany'sactuallossexperienceduringthecurrentperiodratherth

40、anonthecompany'shistoricalperformance.Thistypeofplaniscalleda(n)A) retrospectivelyratedplan.B) classratedplan.C) experienceratedplan.D) judgmentratedplan.Answer:AQuestionStatus:Revised37) AnEconodeathInsuranceCompanyactuarycalculatedthepresentvalueoftheexpecteddeathclaimthecompanywillpayifitsell

41、swholelifeinsurancetoa30-year-oldwoman.ThisvalueiscalledtheA) netlevelpremium.B) grosspremium.C) netsinglepremium.D) lifeinsurancepolicyreserve.Answer:CQuestionStatus:PreviousEdition38) MetroCityhassixdifferentzipcodes.XYZInsuranceCompanymarketscoveragesinMetroCity.Anyapplicantwholistsoneparticularz

42、ipcodeisautomaticallyquotedapremiumthatistwentypercentmorethantheaveragepremiumforapplicantsfromtheotherfivezipcodes,evenifthelossexposureisidentical.WhichregulatoryobjectiveisnotbeingmetgivenXYZ'spremiumstructureA) Ratesmustbeadequate.B) Ratesmustnotunfairlydiscriminate.C) Ratesmustberesponsive.D) Ratemustnotbeexcessive.Answer:BQuestionStatus:PreviousEdition39) AllofthefollowingstatementsaboutthecombinedratioaretrueEXCEPTA) Itisequaltothelossratioplu