for Review the First Exam
Describe Exam Review Major Topics Provide Study Tips and Exam Strategies Sample Exam
First Exam When and Where?
Thursday, February 14, 2008 10:00-11:20 am In this classroom
First Exam
20 Questions in Total Exam is Worth 30 Points. Some True/False or Multiple Choice Others Short Answer or Calculations Exam is Open Book, Open Note Bring Calculator (that you are familiar with using) and Auto and Homeowners policies
Management of mutual insurers are immune to a hostile takeover by a new owner. A) B) C) D) True False Not enough information to determine None of the above
The pure premium is the total of expected claims and expenses on an insurance policy. A) True B) False C) Not enough information to determine D) None of the above
An Insurance Producer (agent or broker) has all of the following duties to an insured except which one: A) Analyze the client's risks and needs. B) Sell a policy that reasonably suits the insurer's needs. C) Help with claims. D) Make sure the insured is always getting the lowest premium rate available. E) All of the above are duties
Calculate the gross premium using the pure premium method based on the following information: Loss frequency 10% Loss severity $900 Fixed expenses $100 Variable expenses 50% A) $90 B) $200 C) $380 D) $2000 E) None of the above
How do you calculate the combined ratio?
A) Loss ratio plus loss adjustment expense ratio B) Loss ratio plus expense ratio C) Loss ratio plus expense ratio minus investment income ratio D) Loss ratio plus expense ratio plus investment income ratio E) None of the above
Topics the Exam Covers
Overview of Insurance Operations (Measurement of Insurer Performance) Marketing and Distribution Systems Underwriting Claims Adjusting Ratemaking Loss Reserving Reinsurance
Study Homework Tips
Review Assignments If you have not been doing well on the assignments, then you probably need to read the texts (on reserve in Undergrad Library) Review Class Projects (available online) Do not memorize material, but know where it is located, if you need to look it up Have organized notes
Exam Strategies
Answer all the questions you can answer without using your book and detailed notes first. Then, if you have time, use your book and detailed notes to help you answer the remaining questions. Do not get bogged down on a particular question. Skip it and come back, if you have time left.
Class Project 9
Work on this class project with 1-2 other students. You will record your answers using your i-clicker. If you do not have an i-clicker, let me know before we go over the answers.
Question 1
A) B) C) D) True False Not enough information to determine None of the above
Question 2
A) B) C) D) True False Not enough information to determine None of the above
Question 3
A) B) C) D) True False Not enough information to determine None of the ab...