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| Section | Objectives |
|---|---|
| Insurance Principles | - Fundamentals of Insurance
|
| Legal Principles of Insurance | - Contract Law Basics
|
| Insurance Practice | - Claims Handling
|
An insurer writes a $60,000,000 risk for a premium of $30,000. Using pro rata reinsurance, it transfers 25% of the risk to the reinsurer. The risk then suffers a $100,000 loss. How much does the reinsurer contribute to this loss?
Correct Answer: A 🗳️
Explanation: Only visible for Actual4test members. You can sign-up / login (it's free).
What type of cancellation occurs if theinsuredcancels the policy before expiry?
Correct Answer: C,D 🗳️
Explanation: Only visible for Actual4test members. You can sign-up / login (it's free).
[Insurance Companies - Reinsurance (Non-Proportional / Excess of Loss)] Cover It Insurance has a non-proportional reinsurance agreement with ZYX-Reinsurance:
$600,000 excess of $300,000.
Which payout is accurate?
Correct Answer: A 🗳️
Explanation: Only visible for Actual4test members. You can sign-up / login (it's free).
If a dispute arises between the insurer and insured over a claim, which party is responsible for satisfying the courts that a concealment of material facts has occurred?
Correct Answer: B 🗳️
Explanation: Only visible for Actual4test members. You can sign-up / login (it's free).
Who has authority from a company to manage that company's business within their territory, to appoint other agents, and to settle claims?
Correct Answer: C 🗳️
Explanation: Only visible for Actual4test members. You can sign-up / login (it's free).
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