瑞达rejda保险教材英文练习题5

1、(Rejda)PrinciplesofRiskManagementandInsurance,11eChapter5TypesofInsurersandMarketingSystems1) WhichofthefollowingstatementsaboutstockinsurersistrueA) Theyissueassessablepolicies.B) Theyarenotpermittedtowritepropertyandliabilityinsurance.C) Stockholdersbearanylossesandshareinanyprofits.D) Theyareowne

2、dbytheirpolicyowners.Answer:CQuestionStatus:PreviousEdition2) WhichofthefollowingstatementsaboutmutualinsurersistrueA) Theyarelegallyorganizedaspartnerships.B) Theyhaveaboardofdirectorswhichisselectedbystateinsurancedepartments.C) Theyareownedbytheirstockholders.D) Theymaypaydividendstotheirpolicyow

3、ners.Answer:DQuestionStatus:PreviousEdition3) Whyaresomemutualinsurersreferredtoas"assessmentmutuals"A) Theychargelowpremiumsbecausethelossexposuresoftheirinsuredsarethoroughlyassessedbeforeapolicyiswritten.B) Theyarenotedforbeingverythoroughintheirassessmentofinvestmentopportunities.C) Th

4、eyareassessedforstatepremiumtaxesonlyiftheymakeaprofit.D) Theycanassesspolicyownersifpremiumsareinsufficienttopaylossesandexpenses.Answer:DQuestionStatus:PreviousEdition4) Thecorporatestructureofmutualinsurersischangingrapidly.AllofthefollowingarecurrenttrendsEXCEPTA) Demutualizationofsomeinsurers.B

5、) Sharpincreaseinthenumberofmutualinsurancecompanies.C) Increaseincompanymergers.D) Formationofmutualholdingcompanies.Answer:BQuestionStatus:PreviousEdition5) AllofthefollowingstatementsaboutfraternalinsurersaretrueEXCEPTA) Theyareaformofmutualinsurer.B) Theyspecializeinwritingpropertyandliabilityin

6、surance.C) Theyenjoytaxadvantagesbecauseoftheirnonprofitorcharitablestatus.D) Theymarkettheircoveragetomembersofasocialorganizationorreligiousgroup.Answer:BQuestionStatus:PreviousEditionI. Itusuallyspecializesinhealthinsurance.II. Itisanunincorporatedmutualinsurancecompany.A) IonlyB) IIonlyC) bothIa

7、ndIID) neitherInorIIAnswer:BQuestionStatus:PreviousEdition7) WhichofthefollowingstatementsaboutLloyd'sofLondonistrueA) CoverageisactuallywrittenbysyndicateswhobelongtoLloyd'sofLondon.B) Itsunderwritersspecializeinwritinglifeandhealthinsurance.C) ItoperatesasanadmittedinsurerthroughouttheUnit

8、edStates.D) Itallowsunderwriterstowritecoveragewithoutmeetingstringentfinancialrequirements.Answer:AQuestionStatus:PreviousEdition8) Temporaryevidenceofinsuranceuntilapolicyisactuallyissuedisprovidedbya(n)A) binder.B) brokerageagreement.C) pre-approvalform.D) endorsement.Answer:AQuestionStatus:Previ

9、ousEdition9) Whichofthefollowingstatementsaboutbrokersis(are)trueI) Theylegallyrepresenttheinsuredratherthantheinsurancecompany.J) .Theyareprohibitedfrombeinglicensedasagents.K) IonlyL) IIonlyM) bothIandIIN) neitherInorIIAnswer:ATo obtainQuestionStatus:PreviousEdition10) Neilneedsinsurancethatisunav

10、ailableinthestatewherehelives.insurancefromanonadmittedinsurer,NeilshouldcontactaA) surpluslinesbroker.B) nonadmittedagent.C) generalagencybroker.D) directwriter.Answer:AQuestionStatus:PreviousEdition11) AllofthefollowingstatementsaboutthegeneralagencysystemusedforsellinglifeinsurancearetrueEXCEPTA)

11、 Ageneralagentisresponsibleforhiring,training,andmotivatingnewagents.B) Ageneralagentisasalariedemployeewhoseresponsibilitiesarelimitedtosellinglifeinsurance.C) Ageneralagentmayreceiveanallowancefortheexpensesofmaintaininganagencyoffice.D) Ageneralagentreceivesacommissionbasedontheamountofbusinesspr

12、oduced.Answer:BQuestionStatus:PreviousEdition12) Whichofthefollowingstatementsaboutthemanagerialsystemofmarketinglifeinsuranceis(are)trueI) Itusesbranchofficesrunbyindependentagentswhorepresentseveralcompanies.J) .Thebranchmanagerisanemployeeoftheinsurerwhohastheresponsibilityforhiringandtrainingnew

13、agents.K) IonlyL) IIonlyM) bothIandIIN) neitherInorIIAnswer:BQuestionStatus:PreviousEdition13) AdvantagesofthedirectresponsesystemformarketinglifeinsuranceincludewhichofthefollowingII.1. Advertisingcanbespecificallydirectedtoselectedmarkets.Complexproductscanbeeasilysold.A) IonlyB) IIonlyC) bothIand

14、IID) neitherInorIIAnswer:AQuestionStatus:PreviousEdition14) WhichofthefollowingstatementsabouttheexclusiveagencysystemformarketingpropertyandliabilityinsuranceistrueA) Exclusiveagentstypicallyhavecompleteownershipofpolicyexpirations.B) Ahighercommissionrateisusuallypaidonexclusiveagents'renewalb

15、usinessthanonnewbusiness.C) Exclusiveagentsrepresentseveraldifferentinsurancecompanies.D) Newexclusiveagentsusuallystartasemployeesandafteratrainingperiodbecomeindependentcontractors.Answer:DQuestionStatus:PreviousEdition15) AllofthefollowingstatementsabouttheindependentagencysystemaretrueEXCEPTA) A

16、gentsareoftenauthorizedtoadjustsmallclaims.B) Agentsarecompensatedonthebasisofcommissions.C) Theinsurerratherthantheagentownstherenewalrightstothebusiness.D) Theagentisanindependentbusinesspersonwhorepresentsseveralinsurers.Answer:CQuestionStatus:PreviousEdition16) Salespersonsofadirectwriterarecons

17、ideredtobeA) independentagents.B) independentcontractors.C) employees.D) brokers.Answer:CQuestionStatus:PreviousEdition17) Whichofthefollowingstatementsaboutthesaleofpropertyandliabilityinsurancethroughthedirectresponsesystemis(are)trueI) Sellingexpensesarehigherbecausemarketsegmentationtendstobeles

18、sprecisethanwithothermarketingmethods.J) .Itisthemostappropriatesystemforsellingcomplexproducts.K) IonlyL) IIonlyM) bothIandIIN) neitherInorIIAnswer:DQuestionStatus:PreviousEdition18) Underonelifeinsurancemarketingsystem,aninsurersellsitsproductsthroughestablishedagentswhoarealreadyengagedinlifeinsu

19、rancesales.Underthissystem,aninsurerentersintocontractswithsuccessfulagentswhoagreetoselltheinsurer'sproducts.ThislifeinsurancemarketingsystemiscalledtheA) directresponsesystem.B) nonbuildingagencysystem.C) independentagencysystem.D) agencybuildingsystem.Answer:BQuestionStatus:PreviousEdition19)

20、 WhichofthefollowingischaracteristicofatypicalmassmerchandisingplanA)highercommissionscalesforagentsandhigheradministrativeexpensesB) paymentofpremiumsthroughpayrolldeductionC) groupratherthanindividualunderwritingD) contributionsbytheemployertothecostofcoverageAnswer:BQuestionStatus:PreviousEdition

21、20) Davidhasalwaysbeensuccessfulinsales.Recently,hewasapproachedbyalifeinsurerinterestedinhiringhim.Initially,Davidwasnotinterestedinthejobbecausehefeareditwouldrequirealotofadministrativework."You'reasupersalesperson,David,"hewastold,"We'rehiringyoutodoonethingandonethingonly

22、SELL!"Davidacceptedtheposition.Davidisa(n)A) exclusiveindependentagent.B) personal-producinggeneralagent.C) branchofficeagent/manager.D) directwritingexclusiveagent.Answer:BQuestionStatus:PreviousEdition21) Sarahownsapropertyandliabilityinsuranceagency.Sheisauthorizedtorepresentseveralinsurance

23、companiesandsheiscompensatedbycommissions.Sarah'sagencyownstheexpirationrightstothebusinessshesells.Sarahisa(n)A)independentagent.B) exclusiveagent.C) directwriter.D) insurancebroker.Answer:AQuestionStatus:PreviousEdition22) Theleadersofareligiousgroupdecidedtostartalifeinsuranceorganizationtoin

24、suremembersofthereligiousgroup.Theinsurerwilloperateasanonprofitorganization,thusreceivingfavorabletaxtreatment.TheinsurerformedwillbeaA) healthmaintenanceorganization.B) stockinsurer.C) fraternalinsurer.D) reciprocalexchange.Answer:CQuestionStatus:PreviousEdition23) Scottworksinpropertyandliability

25、insurancemarketing.Helegallyrepresentsinsurancepurchasers,ratherthaninsurancecompanies.Scottispaidacommissionontheinsuranceplacedwithinsurers.Scottisa(n)A) exclusiveagent.B) directwriter.C) branchmanager.D) insurancebroker.Answer:DQuestionStatus:PreviousEdition24) ABCInsurancehasalwaysusedtheexclusi

26、veagencysystemtomarketcoverages.ABC,however,cannotaffordfull-timeagentsinsparsely-populatedareas.Toreachcustomersintheseareas,ABCentersintoagreementswithlocalindependentagents.UsingmorethanonemarketingsystemiscalledemployingaA) directresponsesystem.B) generalagencysystem.C) multipledistributionsyste

27、m.D) branchofficesystem.Answer:CQuestionStatus:PreviousEdition25) CathyjuststartedajobwithXYZManufacturingCompany.SheattendedanorientationandwasgivenapacketprovidinginformationaboutthevariousemployeebenefitsXYZoffers.Oneiteminthepacketwasabookletandapplicationformfromanautoinsurer.Theinsurerofferslo

28、werpremiumstoXYZemployees.Theinsurer'splanforsellingindividually-underwrittenautoinsurancetoemployeesofXYZManufacturingCompanyiscalledA) directresponse.B) massmerchandising.C) personalselling.D) multiplemarketing.Answer:BQuestionStatus:PreviousEdition26) Brianisalifeinsuranceagent.Heislicensedto

29、representonecompanyandhasbeenassignedaterritory.Inadditiontomarketinglifeinsuranceproductsintheterritory,Brianisalsoresponsibleforrecruiting,training,andmotivatingnewagentsforthecompanyinhisterritory.Brianisa(n)A) exclusiveagent.B) generalagent.C) insurancebroker.D) personal-producinggeneralagent.An

30、swer:BQuestionStatus:PreviousEdition27) ABCLifeInsuranceCompanyusesaninterestingmarketingsystem.ThecompanylocateslifeinsuranceagentswhoarealreadysuccessfulandsignstheagentstosellABClifeinsuranceproducts.ABCdoesnotasktheiragentstorecruitnewagents.ThetypeofmarketingsystemthatABCLifeInsuranceCompanyuse

31、siscalledtheA) generalagencysystem.B) independentagencysystem.C) directresponsesystem.D) nonbuildingagencysystem.Answer:DQuestionStatus:New28) BigMutualInsuranceCompanywouldliketotakeadvantageoffinancialservicesderegulationbyacquiringabankandastockbrokeragefirm.BigMutual,however,wouldhavetroublerais

32、ingthefundsneededtomaketheseacquisitionsunderthemutualformoforganization.BigMutualisplanningtoswitchfromthemutualformoforganizationtothestockform,andtoissuesharesofcommonstocktoraisecapital.ThischangeinorganizationalstructureiscalledA) mutualization.B) retrocession.C) reinsurance.D) demutualization.

33、Answer:DQuestionStatus:PreviousEdition29) Jimwouldliketostartabusinessraisingthoroughbredracehorses.Thebusinesswouldbethefirstofitskindinthestatewherehelives.Obtaininginsuranceonthehorsesisakeyconcern,andhewasdismayedtolearnthatnoneoftheinsurersauthorizedtooperateinhisstateofferthisspecialtyinsuranc

34、e.WhatisthenameoftheintermediarywhichJackcanusetoplacethiscoveragewithaninsurernotadmittedtohisstateA) alieninsurerB) generalagentC) surpluslinesbrokerD) directwriterAnswer:CQuestionStatus:PreviousEdition30) Someinvestorsdecidedtostartaninsurancecompany.Eachinvestorcontributed$50,000toraisethecapita

35、lrequiredtocharteranewcompany.Eachinvestorreceivedanownershipinterestinthecompany.Thecompanywillraiseadditionalcapitalbysellingownershiprightstootherinvestors.Underthistypeoforganization,thecustomerandownerfunctionsareseparate.ThistypeofinsureriscalledaA) stockcompany.B) reciprocalexchange.C) frater

36、nalcompany.D) mutualcompany.Answer:AQuestionStatus:PreviousEdition31) RSTInsuranceisaninterestingcompany.Itdoesn'thaveanyagents.Instead,thecompanysellsinsurancethroughradioads,telemarketers,andnewspaperandmagazineinserts.ThisdistributionmethodiscalledA) reciprocalexchange.B) directresponsesystem

37、.C) massmerchandising.D) multipledistributionsystem.Answer:BQuestionStatus:PreviousEdition32) Onetypeofinsurerisacommunity-orientedhealthinsurer.Inmoststates,thisinsurerisset-upasanon-profitorganizationthatprovidescoverageforhospitalservices,physicians'andsurgeons'fees,andothermedicalservice

38、s.ThistypeofinsureriscalledaA) stockinsurer.B) captiveinsurer.C) healthmaintenanceorganization(HMO).D) BlueCross/BlueShieldPlan.Answer:DQuestionStatus:PreviousEdition33) Whichofthefollowingstatementsis(are)truewithrespecttothefinancialservicesindustryI) Thenumberoffirmsoperatingintheindustrycontinue

39、stoincreaseatahighrate.J) .TheFinancialModernizationActof1999permitsfinancialinstitutionstocompeteinotherfinancialmarketsoutsidetheircorebusinessarea.K) IonlyL) IIonlyM) bothIandIIN) neitherInorIIAnswer:BQuestionStatus:PreviousEdition34) Thefinancialservicesfieldiscurrentlyexperiencingconsolidationa

40、ndconvergence.Ifbothofthesetrendscontinue,inthefutureweshouldobserveA)fewerfinancialinstitutionsofferinganarrowerrangeoffinancialservicesproducts.B) fewerfinancialinstitutionsofferingawiderrangeoffinancialservicesproducts.C) morefinancialinstitutionsofferinganarrowerrangeoffinancialservicesproducts.

41、D) morefinancialinstitutionsofferingawiderrangeoffinancialservicesproducts.Answer:BQuestionStatus:PreviousEdition35) AllofthefollowingarereasonswhymutualinsurancecompaniesconverttostockinsurancecompaniesEXCEPTA) Stockcompaniescanofferstockoptionstoattractandretainkeypersonnel.B) Stockcompaniescanrai

42、senewcapitalmoreeasily.C) Stockcompaniesareexemptfromstateinsuranceregulation.D) Stockcompaniesoffergreaterflexibilitytoexpandthroughacquisitions.Answer:CQuestionStatus:PreviousEdition36) Thedemutualizationprocessisexpensiveandtimeconsuming.Asanalternativetodemutualization,manystateshaveenactedlegislationallowingamutualcompanytoreorganize