瑞达Rejda保险教材英文练习题05解析.docx

1、瑞达Rejda保险教材英文练习题05解析Principles of Risk Management and Insurance, 11e (Rejda)Chapter 5 Types of Insurers and Marketing Systems1) Which of the following statements about stock insurers is true?A) They issue assessable policies.B) They are not permitted to write property and liability insurance.C) Stoc

2、kholders bear any losses and share in any profits.D) They are owned by their policyowners.Answer: CQuestion Status: Previous Edition2) Which of the following statements about mutual insurers is true?A) They are legally organized as partnerships.B) They have a board of directors which is selected by

3、state insurance departments.C) They are owned by their stockholders.D) They may pay dividends to their policyowners.Answer: DQuestion Status: Previous Edition3) Why are some mutual insurers referred to as assessment mutuals?A) They charge low premiums because the loss exposures of their insureds are

4、 thoroughly assessed before a policy is written.B) They are noted for being very thorough in their assessment of investment opportunities.C) They are assessed for state premium taxes only if they make a profit.D) They can assess policyowners if premiums are insufficient to pay losses and expenses.An

5、swer: DQuestion Status: Previous Edition4) The corporate structure of mutual insurers is changing rapidly. All of the following are current trends EXCEPTA) Demutualization of some insurers.B) Sharp increase in the number of mutual insurance companies. C) Increase in company mergers. D) Formation of

6、mutual holding companies. Answer: BQuestion Status: Previous Edition5) All of the following statements about fraternal insurers are true EXCEPTA) They are a form of mutual insurer.B) They specialize in writing property and liability insurance.C) They enjoy tax advantages because of their nonprofit o

7、r charitable status.D) They market their coverage to members of a social organization or religious group.Answer: BQuestion Status: Previous Edition6) Which of the following statements about a reciprocal exchange is (are) true?I. It usually specializes in health insurance.II. It is an unincorporated

8、mutual insurance company. A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition7) Which of the following statements about Lloyds of London is true?A) Coverage is actually written by syndicates who belong to Lloyds of London.B) Its underwriters specialize in

9、 writing life and health insurance.C) It operates as an admitted insurer throughout the United States.D) It allows underwriters to write coverage without meeting stringent financial requirements.Answer: AQuestion Status: Previous Edition8) Temporary evidence of insurance until a policy is actually i

10、ssued is provided by a(n)A) binder.B) brokerage agreement.C) pre-approval form.D) endorsement.Answer: AQuestion Status: Previous Edition9) Which of the following statements about brokers is (are) true?I. They legally represent the insured rather than the insurance company.II. They are prohibited fro

11、m being licensed as agents.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition10) Neil needs insurance that is unavailable in the state where he lives. To obtain insurance from a nonadmitted insurer, Neil should contact aA) surplus lines broker.B) nonadmi

12、tted agent.C) general agency broker.D) direct writer.Answer: AQuestion Status: Previous Edition11) All of the following statements about the general agency system used for selling life insurance are true EXCEPTA) A general agent is responsible for hiring, training, and motivating new agents.B) A gen

13、eral agent is a salaried employee whose responsibilities are limited to selling life insurance.C) A general agent may receive an allowance for the expenses of maintaining an agency office.D) A general agent receives a commission based on the amount of business produced.Answer: BQuestion Status: Prev

14、ious Edition12) Which of the following statements about the managerial system of marketing life insurance is (are) true?I. It uses branch offices run by independent agents who represent several companies.II. The branch manager is an employee of the insurer who has the responsibility for hiring and t

15、raining new agents.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition13) Advantages of the direct response system for marketing life insurance include which of the following?I. Advertising can be specifically directed to selected markets.II. Complex prod

16、ucts can be easily sold.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: AQuestion Status: Previous Edition14) Which of the following statements about the exclusive agency system for marketing property and liability insurance is true?A) Exclusive agents typically have complete ownership

17、 of policy expirations.B) A higher commission rate is usually paid on exclusive agents renewal business than on new business.C) Exclusive agents represent several different insurance companies.D) New exclusive agents usually start as employees and after a training period become independent contracto

18、rs.Answer: DQuestion Status: Previous Edition15) All of the following statements about the independent agency system are true EXCEPTA) Agents are often authorized to adjust small claims.B) Agents are compensated on the basis of commissions.C) The insurer rather than the agent owns the renewal rights

19、 to the business.D) The agent is an independent business person who represents several insurers.Answer: CQuestion Status: Previous Edition16) Salespersons of a direct writer are considered to beA) independent agents.B) independent contractors.C) employees.D) brokers.Answer: CQuestion Status: Previou

20、s Edition17) Which of the following statements about the sale of property and liability insurance through the direct response system is (are) true?I. Selling expenses are higher because market segmentation tends to be less precise than with other marketing methods.II. It is the most appropriate syst

21、em for selling complex products.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: DQuestion Status: Previous Edition18) Under one life insurance marketing system, an insurer sells its products through established agents who are already engaged in life insurance sales. Under this system,

22、an insurer enters into contracts with successful agents who agree to sell the insurers products. This life insurance marketing system is called theA) direct response system.B) nonbuilding agency system.C) independent agency system.D) agency building system.Answer: BQuestion Status: Previous Edition1

23、9) Which of the following is characteristic of a typical mass merchandising plan?A) higher commission scales for agents and higher administrative expensesB) payment of premiums through payroll deductionC) group rather than individual underwritingD) contributions by the employer to the cost of covera

24、geAnswer: BQuestion Status: Previous Edition20) David has always been successful in sales. Recently, he was approached by a life insurer interested in hiring him. Initially, David was not interested in the job because he feared it would require a lot of administrative work. Youre a super salesperson

25、, David, he was told, Were hiring you to do one thing and one thing onlySELL! David accepted the position. David is a(n)A) exclusive independent agent.B) personal-producing general agent.C) branch office agent/manager.D) direct writing exclusive agent.Answer: BQuestion Status: Previous Edition21) Sa

26、rah owns a property and liability insurance agency. She is authorized to represent several insurance companies and she is compensated by commissions. Sarahs agency owns the expiration rights to the business she sells. Sarah is a(n)A) independent agent.B) exclusive agent.C) direct writer.D) insurance

27、 broker.Answer: AQuestion Status: Previous Edition22) The leaders of a religious group decided to start a life insurance organization to insure members of the religious group. The insurer will operate as a nonprofit organization, thus receiving favorable tax treatment. The insurer formed will be aA)

28、 health maintenance organization.B) stock insurer.C) fraternal insurer.D) reciprocal exchange.Answer: CQuestion Status: Previous Edition23) Scott works in property and liability insurance marketing. He legally represents insurance purchasers, rather than insurance companies. Scott is paid a commissi

29、on on the insurance placed with insurers. Scott is a(n)A) exclusive agent.B) direct writer.C) branch manager.D) insurance broker.Answer: DQuestion Status: Previous Edition24) ABC Insurance has always used the exclusive agency system to market coverages. ABC, however, cannot afford full-time agents i

30、n sparsely-populated areas. To reach customers in these areas, ABC enters into agreements with local independent agents. Using more than one marketing system is called employing aA) direct response system.B) general agency system.C) multiple distribution system.D) branch office system.Answer: CQuest

31、ion Status: Previous Edition25) Cathy just started a job with XYZ Manufacturing Company. She attended an orientation and was given a packet providing information about the various employee benefits XYZ offers. One item in the packet was a booklet and application form from an auto insurer. The insure

32、r offers lower premiums to XYZ employees. The insurers plan for selling individually-underwritten auto insurance to employees of XYZ Manufacturing Company is called A) direct response.B) mass merchandising.C) personal selling.D) multiple marketing.Answer: BQuestion Status: Previous Edition26) Brian i