C81 Quiz 7

A detailed and engaging illustration depicting various aspects of insurance underwriting, including policy applications, premiums, and risk assessment, in a modern and colorful style.

Insurance Underwriting and Premiums Quiz

Test your knowledge on the fundamentals of insurance underwriting, rating, and policy issuance with our comprehensive quiz. This quiz is designed for individuals interested in understanding how insurance policies are evaluated and priced.

Key topics covered include:

Insurance applications
Premium calculations
Mortgage clauses
Ratemaking processes

13 Questions3 MinutesCreated by AssessingRisk215

All of the information required to underwrite, rate and issue a policy is contained in:

The insurance application

The insurance act

The policy wording

The certificate of insurance

The calculation of premiums for most kinds of insurance is based upon the application of the:

Probability theory

Statistics forcasting

Past claims total

Client history

Rate can be defined as:

The policy premium

The price of a unit of insurance for a period of one year

$100 worth of insurance

The amount due at policy issue

The _______________ is the amount of money an insurance company charges to provide coverage for a specific risk or policy term.

Premium

Policy rate

Amount due to date

Chargeable amount

A mortgage clause:

Gives the same protection as a loss payable clause

Bestows the rights and obligations on mortgages and insureds

Entitles mortgagee to insurance payment even when insureds have prejudiced their own rights under the policy

Is an agreement between the mortgagee and the insured

The broker currently receiving a commission to handle a policy is the:

Broker of record

Commission broker

Portfolio broker

Broker of book

The two types of applications are:

Expressed and implied

Oral and written

Electronic and paper

Electronic and written

Which of the following is NOT an advantage of a written application:

Recording the information once, eliminating risk of errors

Having documents for cases where the law requires it

Reducing delays and improving customer service

Gives insurers opportunities to waive any Statutory Conditions of insurance contract

Which of the following is NOT one of the eight (8) application questions

Named insured

Subject of insurance

Financials and income

Policy term

On the application, the broker’s report is:

Opportunity for brokers to present additional information about the client

Where the brokers attach credit report

Where brokers attach legal court documents of title

Where the broker gives a professional summary of his or her own insurance experience

Which of the following is NOT a part of the ratemaking process:

Classify risk

Calculate pure premium

Gather statistics on past losses

Calculate commission results

Additional charge included in an insurance rate to reflect a hazard not contemplated in the basic rate is:

Inflation surcharge

Loading reserve

Premium surcharge

_________ is when some classes of business is rated individually

Manual rating

Facultative rating

Market rating

Industry class rating

C81 Quiz 7

Insurance Underwriting and Premiums Quiz

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