瑞达 Rejda 保险教材英文练习题07

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PrinciplesofRiskManagementandInsurance,11e<Rejda>

Chapter7FinancialOperationsofInsurers

1>LMNMutualInsuranceCompanyhastotalliabilitiesof$300million.Thecompanyhastotalassetsof$380million.WhatisLMN'spolicyholders'surplus?

A>$680million

B>$340million

C>$80million

D>-$80million

Answer:C

QuestionStatus:PreviousEdition

2>Allofthefollowingwouldappearintheassetsectionofaninsurancecompany'sbalancesheetEXCEPT

A>lossreserves.

B>bonds.

C>commonstock.

D>realestate.

Answer:A

QuestionStatus:PreviousEdition

3>Underonemethodofestimatingalossreserve,thereserveisbasedonlifeexpectancy,durationofdisability,andsimilarfactors.Thismethodofestimatinglossreservesiscalledthe

A>judgmentmethod.

B>tabularvaluemethod.

C>lossratiomethod.

D>averagevaluemethod.

Answer:B

QuestionStatus:Revised

4>Reasonsfortheunearnedpremiumreserveincludewhichofthefollowing?

I. Topaylossesthatoccurduringthepolicyperiod.

II. Topaypremiumrefundstopolicyholdersintheeventofcancellation.

A>Ionly

B>IIonly

C>bothIandII

D>neitherInorII

Answer:C

QuestionStatus:PreviousEdition

5>Apropertyandcasualtyinsurer'slossreserveincludesestimatesforallofthefollowingEXCEPT

A>claimsanticipatedbutnotyetincurred.

B>claimsreportedandadjustedbutnotyetpaid.

C>claimsreportedandfiledbutnotyetadjusted.

D>claimsincurredbutnotyetreportedtothecompany.

Answer:A

QuestionStatus:PreviousEdition

6>Whichofthefollowingstatementsaboutmethodsforestimatinglossreservesforpropertyandcasualtyinsurersis<are>true?

I. Thejudgmentmethodinvolvestheuseofastatutoryformulatoestimatethelossreserve.

II. Theaveragevaluemethodisusedwhenthenumberofclaimsislargeandtheclaimsaresettledquickly.

A>Ionly

B>IIonly

C>bothIandII

D>neitherInorII

Answer:B

QuestionStatus:PreviousEdition

7>Oneitemthatappearsonaninsurancecompany'sfinancialstatementsisaliabilitythatrepresentsanestimateoftheclaimsreportedandadjustedbutnotyetpaid,claimsreportedandfiledbutnotyetadjusted,andclaimsincurredbutnotyetreportedtothecompany.Thisliabilityiscalledtheinsurer's

A>netincome.

B>lossreserve.

C>admittedassets.

D>unearnedpremiumreserve.

Answer:B

QuestionStatus:PreviousEdition

8>Alossreserveestablishedforeachindividualclaimwhenitisreportedtoapropertyandcasualtyinsurancecompanyiscalla<n>

A>admittedasset.

B>incurred-but-not-reported<IBNR>reserve.

C>unearnedpremiumreserve.

D>casereserve.

Answer:D

QuestionStatus:PreviousEdition

9>Allofthefollowingitemswouldappearintheincomesectionofaninsurancecompany'sincomeandexpensestatementEXCEPT

A>gainonsaleofsecurities.

B>commonstockdividends.

C>commissions.

D>premiums.

Answer:C

QuestionStatus:PreviousEdition

10>JKLInsuranceCompanyreportedthefollowinginformationonitsaccountingstatementslastyear:

PremiumsWritten $90,000,000

LossAdjustmentExpenses $5,000,000

UnderwritingExpenses $30,000,000

PremiumsEarned $100,000,000

IncurredLosses $70,000,000

WhatwasJKL'slossratiolastyear?

A>70.0percent

B>75.0percent

C>83.3percent

D>90.0percent

Answer:B

QuestionStatus:PreviousEdition

11>JKLInsuranceCompanyreportedthefollowinginformationonitsaccountingstatementslastyear:

PremiumsWritten $90,000,000

LossAdjustmentExpenses $5,000,000

UnderwritingExpenses $30,000,000

PremiumsEarned $100,000,000

IncurredLosses $70,000,000

WhatwasJKL'sexpenseratiolastyear?

A>5.0percent

B>30.0percent

C>33.3percent

D>50.0percent

Answer:C

QuestionStatus:PreviousEdition

12>JKLInsuranceCompanyreportedthefollowinginformationonitsaccountingstatementslastyear:

PremiumsWritten $90,000,000

LossAdjustmentExpenses $5,000,000

UnderwritingExpenses $30,000,000

PremiumsEarned $100,000,000

IncurredLosses $70,000,000

WhatwasJKL'scombinedratiolastyear?

A>100.0

B>103.3

C>105.0

D>108.3

Answer:D

QuestionStatus:PreviousEdition

13>Whichofthefollowingstatementsaboutpropertyandcasualtyinsurancecompanyoperatingresultsis<are>true?

I. Aninsurancecompanycanhaveacombinedratiogreaterthan1<or100percent>andstillberequiredtopayincometaxes.

II.Byallmeasures,thepropertyandcasualtyinsuranceindustryishighlyprofitablewhencomparedtootherindustries.

A>Ionly

B>IIonly

C>bothIandII

D>neitherInorII

Answer:A

QuestionStatus:PreviousEdition

14>Lifeinsurancepolicyownersmayborrowthecashvaluefromtheirlifeinsurancepolicies.Wherearelifeinsurancepolicyloansshownonalifeinsurancecompany'sfinancialstatements?

A>asanasset

B>asaliability

C>asincome

D>asanexpense

Answer:A

QuestionStatus:PreviousEdition

15>MedProfInsurancemarketsmedicalmalpracticeinsurance.Thecompany'scombinedratioin2009was95.4.Itsexpenseratiowas25.4.Whatwasthecompany'slossratio?

A>60.4

B>70.0

C>88.2

D>120.8

Answer:B

QuestionStatus:PreviousEdition

16>Toprotectpolicyholders,statelawsplacelimitationsonalifeinsurancecompany'sinvestments.Theassetsbackinginterest-sensitiveproducts,suchasvariablelifeinsuranceandvariableannuities,arenotsubjecttotheserestrictions.Assetsbackinginterest-sensitiveproductsareplacedinaspecialaccountcalledthelifeinsurer's

A>policyreserveaccount.

B>policyloanaccount.

C>separateaccount.

D>policyholderssurplus.

Answer:C

QuestionStatus:PreviousEdition

17>Whichofthefollowingstatementsis<are>trueconcerninginvestmentsofpropertyandcasualtyinsurersandlifeinsurers?

I. Propertyandcasualtyinsurancecompaniesplacegreateremphasisonliquiditythandolifeinsurers.

II. Lifeinsurancecompanyinvestmentsare,onaverage,oflongerdurationthanpropertyandcasualtyinsurancecompanyinvestments.

A>Ionly

B>IIonly

C>bothIandII

D>neitherInorII

Answer:C

QuestionStatus:PreviousEdition

18>AllofthefollowingareexpensesoflifeinsurancecompaniesEXCEPT

A>maturedendowments.

B>surrenderbenefits.

C>disabilityincomepayments.

D>realizedcapitalgains.

Answer:D

QuestionStatus:PreviousEdition

19>AllofthefollowingstatementsaboutbusinessobjectivesindesigningaratingsystemaretrueEXCEPT

A>Theratingsystemshouldencouragelosscontrolactivities.

B>Theratingsystemshouldbeindependentoflong-runchangesineconomicconditions.

C>Theratingsystemshouldbesimpletounderstand.

D>Theratingsystemshouldbestableovershortperiodssothatconsumersatisfactioncanbemaintained.

Answer:B

QuestionStatus:PreviousEdition

20>AllofthefollowingstatementsaboutregulatoryobjectivesofinsuranceratemakingaretrueEXCEPT

A>Onepurposeofrateadequacyistomaintainthesolvencyofinsurers.

B>Ratesunfairlydiscriminateiflossexposuresthataresimilarwithrespecttolossesandexpensesarechargedsubstantiallydifferentrates.

C>Insurersknowinadvanceifthecoveragesmarketedwillbeprofitable,sorateregulationisnotneeded.

D>Ratesareexcessiveifpolicyholdersarepayingsubstantiallymorethantheactualvalueoftheirprotection.

Answer:C

QuestionStatus:PreviousEdition

21>Theunitofmeasurementusedinpropertyandcasualtyinsurancepricingiscalledthe

A>unitrate.

B>premium.

C>exposureunit.

D>experienceunit.

Answer:C

QuestionStatus:PreviousEdition

22>Theportionofaninsurancepremiumallocatedtoexpenses,profit,andamarginforcontingenciesiscalledthe

A>loading.

B>purepremium.

C>grosspremium.

D>experiencerate.

Answer:A

QuestionStatus:PreviousEdition

23>Whichofthefollowingstatementsaboutjudgmentratingistrue?

A>Itinvolvesthemanualratingofexposures.

B>Itisusedwhenthelossexposuresaresodiversethataclassratecannotbecalculated.

C>Itisaformofexperiencerating.

D>Itisonlyusedwhencrediblelossstatisticsareavailable.

Answer:B

QuestionStatus:PreviousEdition

24>Underonetypeofmeritrating,theclassormanualrateisadjustedupwardordownwardbasedonpastlosshistory.Thistypeofmeritratingiscalled

A>schedulerating.

B>judgmentrating.

C>experiencerating.

D>retrospectiverating.

Answer:C

QuestionStatus:PreviousEdition

25>AllofthefollowingstatementsaboutclassratingaretrueEXCEPT

A>Exposureswithsimilarcharacteristicsareplacedinthesameunderwritingclass.

B>Theratechargedforeachclassreflectstheaveragelossexperienceforthatclass.

C>Thecomplexityofclassratingmakesitinappropriateforpersonallinescoverages.

D>Itisbasedontheassumptionthatfuturelossestoinsuredswillbedeterminedbythesameclassificationfactorscurrentlyinuse.

Answer:C

QuestionStatus:PreviousEdition

26>Underthepurepremiummethodofdeterminingclassrates,thegrossrateisdeterminedbywhichofthefollowingformulas?

A>purepremium/<1+expenseratio>

B>purepremium/<1-expenseratio>

C><1+purepremium>/expenseratio

D>expenseratio/<1-purepremium>

Answer:B

QuestionStatus:PreviousEdition

27>Theexpectedlossratioforaclassofbusinessis60percent.Whatchangewouldbeindicatedinthelevelofratesunderthelossratiomethodiftheactuallossratioturnedouttobe68percent?

A>6.67percentincrease

B>13.33percentincrease

C>25.00percentincrease

D>33.33percentincrease

Answer:B

QuestionStatus:PreviousEdition

28>Whichofthefollowingstatementsaboutscheduleratingis<are>true?

I. Itinvolvesthedeterminationofabasisrateforeachexposure,whichisthenmodifiedbycreditsordebits.

II. Itisbasedontheassumptionthatcertainphysicalcharacteristicsoftheinsured'soperationswillinfluencetheinsured'sfuturelossexperience.

A>Ionly

B>IIonly

C>bothIandII

D>neitherInorII

Answer:C

QuestionStatus:PreviousEdition

29>Whichofthefollowingstatementsaboutexperienceratingis<are>true?

I. Theinsured'spastlossexperienceisusedtodeterminethepremiumforthenextpolicyperiod.

II. Itsuseisgenerallylimitedtosmallfirmswhoseactualexperiencelackscredibility.

A>Ionly

B>IIonly

C>bothIandII

D>neitherInorII

Answer:A

QuestionStatus:PreviousEdition

30>Whichofthefollowingstatementsaboutretrospectiveratingistrue?

A>Thepremiumforthecurrentperiodisdeterminedbythelossexperienceforpriorperiods.

B>Thepremiumforthecurrentperiodisdeterminedbythelossexperienceduringthecurrentperiod.

C>Thepremiumforfutureperiodsisdeterminedbytheaveragelossexperienceforthecurrentandpreviousperiods.

D>Thepremiumforfutureperiodsisdeterminedbythelossexperienceforthecurrentperiod.

Answer:B

QuestionStatus:PreviousEdition

31>MonopolyInsuranceistheonlycompanymarketingacertainlineofinsuranceinastate.Aftercomplaintsfromseveralconsumers,theStateInsuranceDepartmentinvestigatedMonopoly'srates.TheregulatorsdeterminedthatMonopolywastakingadvantageofbeingtheonlyinsurerofferingthelinebychargingmorethandoubletheactuarialcostofthecoverage.WhichregulatoryratingobjectivewasMonopolyviolating?

A>Ratesmustbeadequate.

B>Ratesshouldencouragelosscontrol.

C>Ratesmustnotbeexcessive.

D>Ratesmustnotunfairlydiscriminate.

Answer:C

QuestionStatus:PreviousEdition

32>SmallTownusedtobejustthat–asmalltown6milesfromLargeCity.Overtheyears,theareabetweenSmallTownandLargeCityhasdeveloped,andnowSmallTownispartofthesuburbssurroundingLargeCity.AnautoinsurerthatoperatedintheareahadalargeincreaseinautoclaimsfromSmallTowninsureds.Theinsurerdidnotadjustitsrates,andthisyearwilllosemoneybecauseofclaimsattributabletohigherpopulationdensity.Whichbusinessratingobjectivedidthisinsurerfailtomeet?

A>simplicity

B>stability

C>responsiveness

D>encouragementoflosscontrol

Answer:C

QuestionStatus:PreviousEdition

33>NathanwashiredasanactuarywithABCInsurance.NathanwasaskedtocalculatetheannualpremiumforanewproductandtoexplainhiscalculationstoABC'sdirectorofratemaking.Nathancalculatedthepurepremiumandpresentedthisvalueasthefinalpremium.AfterNathan'spresentation,thedirectorofratemakingsaid,"Youleftoutsomethingveryimportant.Ifwesellcoverageatthepurepremiumrate,we'llbeoutofbusinesssoon."WhatdidNathanoverlookinhiscalculations?

A>loadings

B>theunderwritingcycle

C>seasonalityofclaims

D>investmentincome

Answer:A

QuestionStatus:PreviousEdition

34>XYZInsuranceCompanyexpects$500,000inclaimsandlossadjustmentexpensesforeach1,000propertiesthatitinsuresinacertaincategoryofbusinessinsurance.WhatpurepremiumshouldXYZchargeforeachpropertyinsured?

A>$69.99

B>$166.67

C>$350.00

D>$500.00

Answer:D

QuestionStatus:PreviousEdition

35>XYZInsuranceCompanyusesclassratingtodeterminetheratetochargeforinsurance.Foronetypeofinsurance,thepurepremiumXYZactuariescalculatedis$75perunit.IfXYZ'sexpenseratiois25percent,whatisthegrossrateforthiscoverage?

A>$37.50

B>$55.25

C>$75.00

D>$100.00

Answer:D

QuestionStatus:PreviousEdition

36>Amanufacturingcompanyjusthiredanewriskmanager,andshehasinstitutedseveralemployeesafetyprograms.Shehaspersuadedtheinsurerwritingthecompany'sworkerscompensationinsurancetobasethepremiumonthecompany'sactuallossexperienceduringthecurrentperiodratherthanonthecompany'shistoricalperformance.Thistypeofplaniscalleda<n>

A>retrospectivelyratedplan.

B>classratedplan.

C>experienceratedplan.

D>judgmentratedplan.

Answer:A

QuestionStatus:Revised

37>AnEconodeathInsuranceCompanyactuarycalculatedthepresentvalueoftheexpecteddeathclaimthecompanywillpayifitsellswholelifeinsurancetoa30-year-oldwoman.Thisvalueiscalledthe

A>netlevelpremium.

B>grosspremium.

C>netsinglepremium.

D>lifeinsurancepolicyreserve.

Answer:C

QuestionStatus:PreviousEdition

38>MetroCityhassixdifferentzipcodes.XYZInsuranceCompanymarketscoveragesinMetroCity.Anyapplicantwholistsoneparticularzipcodeisautomaticallyquotedapremiumthatistwentypercentmorethantheaveragepremiumforapplicantsfromtheotherfivezipcodes,evenifthelossexposureisidentical.WhichregulatoryobjectiveisnotbeingmetgivenXYZ'spremiumstructure?

A>Ratesmustbeadequate.

B>Ratesmustnotunfairlydiscriminate.

C>Ratesmustberesponsive.

D>Ratemustnotbeexcessive.

Answer:B

QuestionStatus:PreviousEdition

39>AllofthefollowingstatementsaboutthecombinedratioaretrueEXCEPT

A>Itisequaltothelossratioplus