MIDERMEXAMQUESTIONSANSWERSHEETBOLD

MIDERMEXAMQUESTIONSANSWERSHEETBOLD - BF 640 AUTUMN 2008 MID...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
BF 640 AUTUMN 2008 MID TERM EXAM MULTIPLE CHOICE QUESTIONS ANSWER SHEET NAME: _____________________________________________________________ Place your answer on the answer sheet and turn the answer sheet in. You may keep the exam. Answers will be posted on Carmen. 1. Risk can be defined as a. Uncertainty concerning loss b. Certainty regarding loss c. Uncertainty regarding financial gain d. The cause of loss 2. Treating risk by purchasing insurance is an example of a. Avoidance b. Reduction c. Transfer d. Retention 3. All of the following are elements of an insurable risk except a. Be due to chance b. Be predictable c. Be catastrophic d. Have a determinable value 4. An insurance company that is owned by its policyholders is known as what type of company? a. Stock b. Mutual c. Parent d. Domestic 5. In an insurance transaction, who does a licensed agent legally represent a. Insurer b. Applicant c. Insurance department d. Stock market 6. What did the passage of the McCarran Ferguson Act accomplish with respect to regulation of the insurance industry? a. Assured continued state regulation of insurance b. Taxed insurance companies for additional revenue c. Deemed insurance to be interstate commerce
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
d. Exempted insurance from all federal government regulation and taxation 7. What did the Financial Services Modernization Act (Graham-Leach-Bliley) accomplish with respect to the regulation of the insurance industry a. Barred common ownership of banks and insurance companies b. Ensured continued state regulation of insurance c. Permitted banks, securities firms and insurance companies to enter each other’s lines of business d. Exempted the insurance industry from federal regulation 8. Because an insurance contract is generally a contract of adhesion, a. Any ambiguity is resolved in favor of the insurer b. Any ambiguity is resolved in favor of the insured c. There is no time limit on when a claim must be filed d. Payment by the insurer is conditional upon an event occurring 9. With a life insurance contract, an insurable interest must exist a. At the inception of the contract b. As long as the insured lives c. At the insured’s death d. When the proceeds are paid out 10. John’s insurance contract states that it will pay $500,000 at his death. This type of contract is known as a a. Indemnity contract b. Conditional contract c. Valued contract d. Aleatory contract 11. Jay has a $50,000 life insurance policy with an accidental death benefit that pays triple the face amount. If Jay commits suicide three years after the policy issuance, how much will his beneficiaries receive a. $0 b. $50,000 c. $100,000 d. $150,000 12. All of the following would be eligible for a group life policy except a. Labor union b. Employer-employee group c. Family of 10 d. Trade association
Background image of page 2
13. A mortality table reflects a. The average life span for any given individual b. Which individual will die within a given number of years c. The average number of deaths that will occur in a given year for a
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/02/2009 for the course BUSFIN 600 taught by Professor I during the Spring '09 term at Ohio State.

Page1 / 9

MIDERMEXAMQUESTIONSANSWERSHEETBOLD - BF 640 AUTUMN 2008 MID...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online