瑞达Rejda保险教材英文练习题07x

PrinciplesofRiskManagementandInsurance,11e(Rejda)
Chapter7FinancialOperationsofInsurers
LMNMutualInsuranceCompanyhastotalliabilitiesof$300million.Thecompanyhastotalastsof$380million.WhatisLMN'spolicyholders'surplus
$680million
$340million
$80million
-$80millionAnswer:CQuestionStatus:PreviousEdition
Allofthefollowingwouldappearintheastctionofaninsurancecompany'sbalancesheet
EXCEPT
lossrerves.
bonds.
commonstock.
realestate.Answer:AQuestionStatus:PreviousEdition
Underonemethodofestimatingalossrerve,thererveisbadonlifeexpectancy,durationofdisability,andsimilarfactors.Thismethodofestimatinglossrervesiscalledthe
judgmentmethod.
tabularvaluemethod.
lossratiomethod.
averagevaluemethod.Answer:BQuestionStatus:Revid
ReasonsfortheunearnedpremiumrerveincludewhichofthefollowingI.Topaylossthatoccurduringthepolicyperiod.
II.Topaypremiumrefundstopolicyholdersintheeventofcancellation.
Ionly
IIonly
bothIandII
neitherInorIIAnswer:CQuestionStatus:PreviousEdition
Apropertyandcasualtyinsurer'slossrerveincludestimatesforallofthefollowing
EXCEPT
claimsanticipatedbutnotyetincurred.
claimsreportedandadjustedbutnotyetpaid.
claimsreportedandfiledbutnotyetadjusted.
claimsincurredbutnotyetreportedtothecompany.Answer:A
QuestionStatus:PreviousEdition
Whichofthefollowingstatementsaboutmethodsforestimatinglossrervesforpropertyandcasualtyinsurersis(are)true
I.Thejudgmentmethodinvolvestheuofastatutoryformulatoestimatethelossrerve.II.Theaveragevaluemethodisudwhenthenumberofclaimsislargeandtheclaimsarettledquickly.
Ionly
IIonly
bothIandII
neitherInorIIAnswer:B
QuestionStatus:PreviousEdition
Oneitemthatappearsonaninsurancecompany'sfinancialstatementsisaliabilitythatreprentsanestimateoftheclaimsreportedandadjustedbutnotyetpaid,claimsreportedandfiledbutnotyetadjusted,
andclaimsincurredbutnotyetreportedtothecompany.Thisliabilityiscalledtheinsurer's
netincome.
lossrerve.
admittedasts.
unearnedpremiumrerve.Answer:B
QuestionStatus:PreviousEdition
Alossrerveestablishedforeachindividualclaimwhenitisreportedtoapropertyandcasualtyinsurancecompanyiscalla(n)
admittedast.
incurred-but-not-reported(IBNR)rerve.
unearnedpremiumrerve.
carerve.
Answer:D
QuestionStatus:PreviousEdition
Allofthefollowingitemswouldappearintheincomectionofaninsurancecompany'sincomeandexpenstatementEXCEPT
gainonsaleofcurities.
commonstockdividends.
commissions.
premiums.Answer:CQuestionStatus:PreviousEdition
JKLInsuranceCompanyreportedthefollowinginformationonitsaccountingstatementslastyear:
PremiumsWritten
$90,000,000
LossAdjustmentExpens
$5,000,000
UnderwritingExpens
$30,000,000
PremiumsEarned
$100,000,000
IncurredLoss
$70,000,000
percent
percent
percent
percentAnswer:BQuestionStatus:PreviousEdition
JKLInsuranceCompanyreportedthefollowinginformationonitsaccountingstatementslastyear:
PremiumsWritten
$90,000,000
LossAdjustmentExpens
$5,000,000
UnderwritingExpens
$30,000,000
PremiumsEarned
$100,000,000
IncurredLoss
$70,000,000
percent
percent
percent
percentAnswer:CQuestionStatus:PreviousEdition
JKLInsuranceCompanyreportedthefollowinginformationonitsaccountingstatementslast
year:
PremiumsWritten
$90,000,000
LossAdjustmentExpens
$5,000,000
UnderwritingExpens
$30,000,000
PremiumsEarned
$100,000,000
IncurredLoss
$70,000,000
WhatwasJKL'scombinedratiolastyear
A)
B)
C)
D)
Answer:D
QuestionStatus:PreviousEdition
Whichofthefollowingstatementsaboutpropertyandcasualtyinsurancecompanyoperatingresultsis(are)true
I.Aninsurancecompanycanhaveacombinedratiogreaterthan1(or100percent)andstillberequiredtopayincometaxes.
II.Byallmeasures,thepropertyandcasualtyinsuranceindustryishighlyprofitablewhencomparedtootherindustries.
Ionly
IIonly
bothIandII
neitherInorIIAnswer:AQuestionStatus:PreviousEdition
Lifeinsurancepolicyownersmayborrowthecashvaluefromtheirlifeinsurancepolicies.Wherearelifeinsurancepolicyloansshownonalifeinsurancecompany'sfinancialstatements
asanast
asaliability
asincome
asanexpenAnswer:AQuestionStatus:PreviousEdition
MedProfInsurancemarketsmedicalmalpracticeinsurance.Thecompany'scombinedratioin
2009was.Itxpenratiowas.Whatwasthecompany'slossratio
A)
B)
C)
D)Answer:BQuestionStatus:PreviousEdition
Toprotectpolicyholders,statelawsplacelimitationsonalifeinsurancecompany's
investments.Theastsbackinginterest-nsitiveproducts,suchasvariablelifeinsuranceandvariableannuities,arenotsubjecttotherestrictions.Astsbackinginterest-nsitiveproductsareplacedinaspecialaccountcalledthelifeinsurer's
A)policyrerveaccount.
policyloanaccount.
parateaccount.
policyholderssurplus.Answer:C
QuestionStatus:PreviousEdition
Whichofthefollowingstatementsis(are)trueconcerninginvestmentsofpropertyand
casualtyinsurersandlifeinsurers
I.Propertyandcasualtyinsurancecompaniesplacegreateremphasisonliquiditythandolifeinsurers.
Lifeinsurancecompanyinvestmentsare,onaverage,oflongerdurationthanpropertyandcasualtyinsurancecompanyinvestments.
Ionly
IIonly
bothIandII
neitherInorIIAnswer:C
QuestionStatus:PreviousEdition
AllofthefollowingareexpensoflifeinsurancecompaniesEXCEPT
maturedendowments.
surrenderbenefits.
disabilityincomepayments.
realizedcapitalgains.Answer:D
QuestionStatus:PreviousEdition
Allofthefollowingstatementsaboutbusinessobjectivesindesigningaratingsystemaretrue
EXCEPT
Theratingsystemshouldencouragelosscontrolactivities.
Theratingsystemshouldbeindependentoflong-runchangesineconomicconditions.
Theratingsystemshouldbesimpletounderstand.
Theratingsystemshouldbestableovershortperiodssothatconsumersatisfactioncanbemaintained.
Answer:B
QuestionStatus:PreviousEdition
Allofthefollowingstatementsaboutregulatoryobjectivesofinsuranceratemakingaretrue
EXCEPT
Onepurpoofrateadequacyistomaintainthesolvencyofinsurers.
Ratesunfairlydiscriminateiflosxposuresthataresimilarwithrespecttolossandexpens
arechargedsubstantiallydifferentrates.
Insurersknowinadvanceifthecoveragesmarketedwillbeprofitable,sorateregulationisnotneeded.
Ratesareexcessiveifpolicyholdersarepayingsubstantiallymorethantheactualvalueoftheirprotection.
Answer:C
QuestionStatus:PreviousEdition
Theunitofmeasurementudinpropertyandcasualtyinsurancepricingiscalledthe
unitrate.
premium.
exposureunit.
experienceunit.Answer:C
QuestionStatus:PreviousEdition
Theportionofaninsurancepremiumallocatedtoexpens,profit,andamarginforcontingenciesiscalledthe
loading.
purepremium.
grosspremium.
experiencerate.Answer:AQuestionStatus:PreviousEdition
Whichofthefollowingstatementsaboutjudgmentratingistrue
Itinvolvesthemanualratingofexposures.
Itisudwhenthelosxposuresaresodiverthataclassratecannotbecalculated.
Itisaformofexperiencerating.
Itisonlyudwhencrediblelossstatisticsareavailable.Answer:B