瑞达 Rejda 保险教材英文练习题07.docx

瑞达 Rejda 保险教材英文练习题07.docx

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瑞达Rejda保险教材英文练习题07

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）Whichofthefollowingstatementsabout