瑞達 Rejda 保險教材英文練習題05

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PrinciplesofRiskManagementandInsurance,11e<Rejda>

Chapter5TypesofInsurersandMarketingSystems

1>Whichofthefollowingstatementsaboutstockinsurersistrue?

A>Theyissueassessablepolicies.

B>Theyarenotpermittedtowritepropertyandliabilityinsurance.

C>Stockholdersbearanylossesandshareinanyprofits.

D>Theyareownedbytheirpolicyowners.

Answer:C

QuestionStatus:PreviousEdition

2>Whichofthefollowingstatementsaboutmutualinsurersistrue?

A>Theyarelegallyorganizedaspartnerships.

B>Theyhaveaboardofdirectorswhichisselectedbystateinsurancedepartments.

C>Theyareownedbytheirstockholders.

D>Theymaypaydividendstotheirpolicyowners.

Answer:D

QuestionStatus:PreviousEdition

3>Whyaresomemutualinsurersreferredtoas"assessmentmutuals"?

A>Theychargelowpremiumsbecausethelossexposuresoftheirinsuredsarethoroughlyassessedbeforeapolicyiswritten.

B>Theyarenotedforbeingverythoroughintheirassessmentofinvestmentopportunities.

C>Theyareassessedforstatepremiumtaxesonlyiftheymakeaprofit.

D>Theycanassesspolicyownersifpremiumsareinsufficienttopaylossesandexpenses.

Answer:D

QuestionStatus:PreviousEdition

4>Thecorporatestructureofmutualinsurersischangingrapidly.AllofthefollowingarecurrenttrendsEXCEPT

A>Demutualizationofsomeinsurers.

B>Sharpincreaseinthenumberofmutualinsurancecompanies.

C>Increaseincompanymergers.

D>Formationofmutualholdingcompanies.

Answer:B

QuestionStatus:PreviousEdition

5>AllofthefollowingstatementsaboutfraternalinsurersaretrueEXCEPT

A>Theyareaformofmutualinsurer.

B>Theyspecializeinwritingpropertyandliabilityinsurance.

C>Theyenjoytaxadvantagesbecauseoftheirnonprofitorcharitablestatus.

D>Theymarkettheircoveragetomembersofasocialorganizationorreligiousgroup.

Answer:B

QuestionStatus:PreviousEdition

6>Whichofthefollowingstatementsaboutareciprocalexchangeis<are>true?

I. Itusuallyspecializesinhealthinsurance.

II. Itisanunincorporatedmutualinsurancecompany.

A>Ionly

B>IIonly

C>bothIandII

D>neitherInorII

Answer:B

QuestionStatus:PreviousEdition

7>WhichofthefollowingstatementsaboutLloyd'sofLondonistrue?

A>CoverageisactuallywrittenbysyndicateswhobelongtoLloyd'sofLondon.

B>Itsunderwritersspecializeinwritinglifeandhealthinsurance.

C>ItoperatesasanadmittedinsurerthroughouttheUnitedStates.

D>Itallowsunderwriterstowritecoveragewithoutmeetingstringentfinancialrequirements.

Answer:A

QuestionStatus:PreviousEdition

8>Temporaryevidenceofinsuranceuntilapolicyisactuallyissuedisprovidedbya<n>

A>binder.

B>brokerageagreement.

C>pre-approvalform.

D>endorsement.

Answer:A

QuestionStatus:PreviousEdition

9>Whichofthefollowingstatementsaboutbrokersis<are>true?

I. Theylegallyrepresenttheinsuredratherthantheinsurancecompany.

II. Theyareprohibitedfrombeinglicensedasagents.

A>Ionly

B>IIonly

C>bothIandII

D>neitherInorII

Answer:A

QuestionStatus:PreviousEdition

10>Neilneedsinsurancethatisunavailableinthestatewherehelives.Toobtaininsurancefromanonadmittedinsurer,Neilshouldcontacta

A>surpluslinesbroker.

B>nonadmittedagent.

C>generalagencybroker.

D>directwriter.

Answer:A

QuestionStatus:PreviousEdition

11>AllofthefollowingstatementsaboutthegeneralagencysystemusedforsellinglifeinsurancearetrueEXCEPT

A>Ageneralagentisresponsibleforhiring,training,andmotivatingnewagents.

B>Ageneralagentisasalariedemployeewhoseresponsibilitiesarelimitedtosellinglifeinsurance.

C>Ageneralagentmayreceiveanallowancefortheexpensesofmaintaininganagencyoffice.

D>Ageneralagentreceivesacommissionbasedontheamountofbusinessproduced.

Answer:B

QuestionStatus:PreviousEdition

12>Whichofthefollowingstatementsaboutthemanagerialsystemofmarketinglifeinsuranceis<are>true?

I. Itusesbranchofficesrunbyindependentagentswhorepresentseveralcompanies.

II. Thebranchmanagerisanemployeeoftheinsurerwhohastheresponsibilityforhiringandtrainingnewagents.

A>Ionly

B>IIonly

C>bothIandII

D>neitherInorII

Answer:B

QuestionStatus:PreviousEdition

13>Advantagesofthedirectresponsesystemformarketinglifeinsuranceincludewhichofthefollowing?

I. Advertisingcanbespecificallydirectedtoselectedmarkets.

II. Complexproductscanbeeasilysold.

A>Ionly

B>IIonly

C>bothIandII

D>neitherInorII

Answer:A

QuestionStatus:PreviousEdition

14>Whichofthefollowingstatementsabouttheexclusiveagencysystemformarketingpropertyandliabilityinsuranceistrue?

A>Exclusiveagentstypicallyhavecompleteownershipofpolicyexpirations.

B>Ahighercommissionrateisusuallypaidonexclusiveagents'renewalbusinessthanonnewbusiness.

C>Exclusiveagentsrepresentseveraldifferentinsurancecompanies.

D>Newexclusiveagentsusuallystartasemployeesandafteratrainingperiodbecomeindependentcontractors.

Answer:D

QuestionStatus:PreviousEdition

15>AllofthefollowingstatementsabouttheindependentagencysystemaretrueEXCEPT

A>Agentsareoftenauthorizedtoadjustsmallclaims.

B>Agentsarecompensatedonthebasisofcommissions.

C>Theinsurerratherthantheagentownstherenewalrightstothebusiness.

D>Theagentisanindependentbusinesspersonwhorepresentsseveralinsurers.

Answer:C

QuestionStatus:PreviousEdition

16>Salespersonsofadirectwriterareconsideredtobe

A>independentagents.

B>independentcontractors.

C>employees.

D>brokers.

Answer:C

QuestionStatus:PreviousEdition

17>Whichofthefollowingstatementsaboutthesaleofpropertyandliabilityinsurancethroughthedirectresponsesystemis<are>true?

I. Sellingexpensesarehigherbecausemarketsegmentationtendstobelessprecisethanwithothermarketingmethods.

II. Itisthemostappropriatesystemforsellingcomplexproducts.

A>Ionly

B>IIonly

C>bothIandII

D>neitherInorII

Answer:D

QuestionStatus:PreviousEdition

18>Underonelifeinsurancemarketingsystem,aninsurersellsitsproductsthroughestablishedagentswhoarealreadyengagedinlifeinsurancesales.Underthissystem,aninsurerentersintocontractswithsuccessfulagentswhoagreetoselltheinsurer'sproducts.Thislifeinsurancemarketingsystemiscalledthe

A>directresponsesystem.

B>nonbuildingagencysystem.

C>independentagencysystem.

D>agencybuildingsystem.

Answer:B

QuestionStatus:PreviousEdition

19>Whichofthefollowingischaracteristicofatypicalmassmerchandisingplan?

A>highercommissionscalesforagentsandhigheradministrativeexpenses

B>paymentofpremiumsthroughpayrolldeduction

C>groupratherthanindividualunderwriting

D>contributionsbytheemployertothecostofcoverage

Answer:B

QuestionStatus:PreviousEdition

20>Davidhasalwaysbeensuccessfulinsales.Recently,hewasapproachedbyalifeinsurerinterestedinhiringhim.Initially,Davidwasnotinterestedinthejobbecausehefeareditwouldrequirealotofadministrativework."You'reasupersalesperson,David,"hewastold,"We'rehiringyoutodoonethingandonethingonly–SELL!"Davidacceptedtheposition.Davidisa<n>

A>exclusiveindependentagent.

B>personal-producinggeneralagent.

C>branchofficeagent/manager.

D>directwritingexclusiveagent.

Answer:B

QuestionStatus:PreviousEdition

21>Sarahownsapropertyandliabilityinsuranceagency.Sheisauthorizedtorepresentseveralinsurancecompaniesandsheiscompensatedbycommissions.Sarah'sagencyownstheexpirationrightstothebusinessshesells.Sarahisa<n>

A>independentagent.

B>exclusiveagent.

C>directwriter.

D>insurancebroker.

Answer:A

QuestionStatus:PreviousEdition

22>Theleadersofareligiousgroupdecidedtostartalifeinsuranceorganizationtoinsuremembersofthereligiousgroup.Theinsurerwilloperateasanonprofitorganization,thusreceivingfavorabletaxtreatment.Theinsurerformedwillbea

A>healthmaintenanceorganization.

B>stockinsurer.

C>fraternalinsurer.

D>reciprocalexchange.

Answer:C

QuestionStatus:PreviousEdition

23>Scottworksinpropertyandliabilityinsurancemarketing.Helegallyrepresentsinsurancepurchasers,ratherthaninsurancecompanies.Scottispaidacommissionontheinsuranceplacedwithinsurers.Scottisa<n>

A>exclusiveagent.

B>directwriter.

C>branchmanager.

D>insurancebroker.

Answer:D

QuestionStatus:PreviousEdition

24>ABCInsurancehasalwaysusedtheexclusiveagencysystemtomarketcoverages.ABC,however,cannotaffordfull-timeagentsinsparsely-populatedareas.Toreachcustomersintheseareas,ABCentersintoagreementswithlocalindependentagents.Usingmorethanonemarketingsystemiscalledemployinga

A>directresponsesystem.

B>generalagencysystem.

C>multipledistributionsystem.

D>branchofficesystem.

Answer:C

QuestionStatus:PreviousEdition

25>CathyjuststartedajobwithXYZManufacturingCompany.SheattendedanorientationandwasgivenapacketprovidinginformationaboutthevariousemployeebenefitsXYZoffers.Oneiteminthepacketwasabookletandapplicationformfromanautoinsurer.TheinsurerofferslowerpremiumstoXYZemployees.Theinsurer'splanforsellingindividually-underwrittenautoinsurancetoemployeesofXYZManufacturingCompanyiscalled

A>directresponse.

B>massmerchandising.

C>personalselling.

D>multiplemarketing.

Answer:B

QuestionStatus:PreviousEdition

26>Brianisalifeinsuranceagent.Heislicensedtorepresentonecompanyandhasbeenassignedaterritory.Inadditiontomarketinglifeinsuranceproductsintheterritory,Brianisalsoresponsibleforrecruiting,training,andmotivatingnewagentsforthecompanyinhisterritory.Brianisa<n>

A>exclusiveagent.

B>generalagent.

C>insurancebroker.

D>personal-producinggeneralagent.

Answer:B

QuestionStatus:PreviousEdition

27>ABCLifeInsuranceCompanyusesaninterestingmarketingsystem.ThecompanylocateslifeinsuranceagentswhoarealreadysuccessfulandsignstheagentstosellABClifeinsuranceproducts.ABCdoesnotasktheiragentstorecruitnewagents.ThetypeofmarketingsystemthatABCLifeInsuranceCompanyusesiscalledthe

A>generalagencysystem.

B>independentagencysystem.

C>directresponsesystem.

D>nonbuildingagencysystem.

Answer:D

QuestionStatus:New

28>BigMutualInsuranceCompanywouldliketotakeadvantageoffinancialservicesderegulationbyacquiringabankandastockbrokeragefirm.BigMutual,however,wouldhavetroubleraisingthefundsneededtomaketheseacquisitionsunderthemutualformoforganization.BigMutualisplanningtoswitchfromthemutualformoforganizationtothestockform,andtoissuesharesofcommonstocktoraisecapital.Thischangeinorganizationalstructureiscalled

A>mutualization.

B>retrocession.

C>reinsurance.

D>demutualization.

Answer:D

QuestionStatus:PreviousEdition

29>Jimwouldliketostartabusinessraisingthoroughbredracehorses.Thebusinesswouldbethefirstofitskindinthestatewherehelives.Obtaininginsuranceonthehorsesisakeyconcern,andhewasdismayedtolearnthatnoneoftheinsurersauthorizedtooperateinhisstateofferthisspecialtyinsurance.WhatisthenameoftheintermediarywhichJackcanusetoplacethiscoveragewithaninsurernotadmittedtohisstate?

A>alieninsurer

B>generalagent

C>surpluslinesbroker

D>directwriter

Answer:C

QuestionStatus:PreviousEdition

30>Someinvestorsdecidedtostartaninsurancecompany.Eachinvestorcontributed$50,000toraisethecapitalrequiredtocharteranewcompany.Eachinvestorreceivedanownershipinterestinthecompany.Thecompanywillraiseadditionalcapitalbysellingownershiprightstootherinvestors.Underthistypeoforganization,thecustomerandownerfunctionsareseparate.Thistypeofinsureriscalleda

A>stockcompany.

B>reciprocalexchange.

C>fraternalcompany.

D>mutualcompany.

Answer:A

QuestionStatus:PreviousEdition

31>RSTInsuranceisaninterestingcompany.Itdoesn'thaveanyagents.Instead,thecompanysellsinsurancethroughradioads,telemarketers,andnewspaperandmagazineinserts.Thisdistributionmethodiscalled

A>reciprocalexchange.

B>directresponsesystem.

C>massmerchandising.

D>multipledistributionsystem.

Answer:B

QuestionStatus:PreviousEdition

32>Onetypeofinsurerisacommunity-orientedhealthinsurer.Inmoststates,thisinsurerisset-upasanon-profitorganizationthatprovidescoverageforhospitalservices,physicians'andsurgeons'fees,andothermedicalservices.Thistypeofinsureriscalleda

A>stockinsurer.

B>captiveinsurer.

C>healthmaintenanceorganization<HMO>.

D>BlueCross/BlueShieldPlan.

Answer:D

QuestionStatus:PreviousEdition

33>Whichofthefollowingstatementsis<are>truewithrespecttothefinancialservicesindustry?

I. Thenumberoffirmsoperatingintheindustrycontinuestoincreaseatahighrate.

II. TheFinancialModernizationActof1999permitsfinancialinstitutionstocompeteinotherfinancialmarketsoutsidetheircorebusinessarea.

A>Ionly

B>IIonly

C>bothIandII

D>neitherInorII

Answer:B

QuestionStatus:PreviousEdition

34>Thefinancialservicesfieldiscurrentlyexperiencingconsolidationandconvergence.Ifbothofthesetrendscontinue,inthefutureweshouldobserve

A>fewerfinancialinstitutionsofferinganarrowerrangeoffinancialservicesproducts.

B>fewerfinancialinstitutionsofferingawiderrangeoffinancialservicesproducts.

C>morefinancialinstitutionsofferinganarrowerrangeoffinancialservicesproducts.

D>morefinancialinstitutionsofferingawiderrangeoffinancialservicesproducts.

Answer:B

QuestionStatus:PreviousEdition

35>AllofthefollowingarereasonswhymutualinsurancecompaniesconverttostockinsurancecompaniesEXCEPT

A>Stockcompaniescanofferstockoptionstoattractandretainkeypersonnel.

B>Stockcompaniescanraisenewcapitalmoreeasily.

C>Stockcompaniesareexemptfromstateinsuranceregulation.

D>Stockcompaniesoffergreaterflexibilitytoexpandthroughacquisitions.

Answer:C

QuestionStatus:PreviousEdition

36>Thedemutualizationprocessisexpensiveandtimeconsuming.Asanalternativetodemutualization,manystateshaveenactedlegislationallowingamutualcompanytoreorganizeasacompanythatdir