1、瑞达 Rejda 保险教材英文练习题07Principles of Risk Management and Insurance, 11e (Rejda)Chapter 7 Financial Operations of Insurers1) LMN Mutual Insurance Company has total liabilities of $300 million. The company has total assets of $380 million. What is LMNs policyholders surplusA) $680 million B) $340 million
2、 C) $80 million D) -$80 million Answer: CQuestion Status: Previous Edition2) All of the following would appear in the asset section of an insurance companys balance sheet EXCEPTA) loss reserves. B) bonds.C) common stock. D) real estate. Answer: AQuestion Status: Previous Edition3) Under one method o
3、f estimating a loss reserve, the reserve is based on life expectancy, duration of disability, and similar factors. This method of estimating loss reserves is called the A) judgment method. B) tabular value method. C) loss ratio method. D) average value method. Answer: BQuestion Status: Revised4) Rea
4、sons for the unearned premium reserve include which of the followingI. To pay losses that occur during the policy period.II. To pay premium refunds to policyholders in the event of cancellation.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: CQuestion Status: Previous Edition5) A prope
5、rty and casualty insurers loss reserve includes estimates for all of the following EXCEPTA) claims anticipated but not yet incurred.B) claims reported and adjusted but not yet paid.C) claims reported and filed but not yet adjusted.D) claims incurred but not yet reported to the company.Answer: AQuest
6、ion Status: Previous Edition6) Which of the following statements about methods for estimating loss reserves for property and casualty insurers is (are) trueI. The judgment method involves the use of a statutory formula to estimate the loss reserve.II. The average value method is used when the number
7、 of claims is large and the claims are settled quickly.A) I onlyB) II onlyC) both I and IID) neither I nor IIAnswer: BQuestion Status: Previous Edition7) One item that appears on an insurance companys financial statements is a liability that represents an estimate of the claims reported and adjusted
8、 but not yet paid, claims reported and filed but not yet adjusted, and claims incurred but not yet reported to the company. This liability is called the insurersA) net income.B) loss reserve.C) admitted assets.D) unearned premium reserve.Answer: BQuestion Status: Previous Edition8) A loss reserve es
9、tablished for each individual claim when it is reported to a property and casualty insurance company is call a(n) A) admitted asset. B) incurred-but-not-reported (IBNR) reserve. C) unearned premium reserve. D) case reserve. Answer: DQuestion Status: Previous Edition9) All of the following items woul
10、d appear in the income section of an insurance companys income and expense statement EXCEPTA) gain on sale of securities. B) common stock dividends. C) commissions.D) premiums. Answer: CQuestion Status: Previous Edition10) JKL Insurance Company reported the following information on its accounting st
11、atements last year: Premiums Written $90,000,000 Loss Adjustment Expenses $5,000,000 Underwriting Expenses $30,000,000 Premiums Earned $100,000,000 Incurred Losses $70,000,000What was JKLs loss ratio last year A) percent B) percent C) percent D) percent Answer: BQuestion Status: Previous Edition11)
12、JKL Insurance Company reported the following information on its accounting statements last year: Premiums Written $90,000,000 Loss Adjustment Expenses $5,000,000 Underwriting Expenses $30,000,000 Premiums Earned $100,000,000 Incurred Losses $70,000,000What was JKLs expense ratio last year A) percent
13、 B) percent C) percent D) percent Answer: CQuestion Status: Previous Edition12) JKL Insurance Company reported the following information on its accounting statements last year: Premiums Written $90,000,000 Loss Adjustment Expenses $5,000,000 Underwriting Expenses $30,000,000 Premiums Earned $100,000
14、,000 Incurred Losses $70,000,000What was JKLs combined ratio last yearA) B) C) D) Answer: DQuestion Status: Previous Edition13) Which of the following statements about property and casualty insurance company operating results is (are) trueI. An insurance company can have a combined ratio greater tha
15、n 1 (or 100 percent) and still be required to pay income taxes. II. By all measures, the property and casualty insurance industry is highly profitable when compared to other industries. A) I only B) II only C) both I and II D) neither I nor II Answer: AQuestion Status: Previous Edition14) Life insur
16、ance policyowners may borrow the cash value from their life insurance policies. Where are life insurance policy loans shown on a life insurance companys financial statementsA) as an asset B) as a liability C) as income D) as an expenseAnswer: AQuestion Status: Previous Edition15) MedProf Insurance m
17、arkets medical malpractice insurance. The companys combined ratio in 2009 was . Its expense ratio was . What was the companys loss ratio A) B) C) D) Answer: BQuestion Status: Previous Edition16) To protect policyholders, state laws place limitations on a life insurance companys investments. The asse
18、ts backing interest-sensitive products, such as variable life insurance and variable annuities, are not subject to these restrictions. Assets backing interest-sensitive products are placed in a special account called the life insurers A) policy reserve account. B) policy loan account. C) separate ac
19、count. D) policyholders surplus. Answer: CQuestion Status: Previous Edition17) Which of the following statements is (are) true concerning investments of property and casualty insurers and life insurersI. Property and casualty insurance companies place greater emphasis on liquidity than do life insur
20、ers.II. Life insurance company investments are, on average, of longer duration than property and casualty insurance company investments. A) I only B) II only C) both I and II D) neither I nor II Answer: CQuestion Status: Previous Edition18) All of the following are expenses of life insurance compani
21、es EXCEPTA) matured endowments. B) surrender benefits. C) disability income payments. D) realized capital gains. Answer: DQuestion Status: Previous Edition19) All of the following statements about business objectives in designing a rating system are true EXCEPTA) The rating system should encourage l
22、oss control activities.B) The rating system should be independent of long-run changes in economic conditions.C) The rating system should be simple to understand.D) The rating system should be stable over short periods so that consumer satisfaction can be maintained.Answer: BQuestion Status: Previous
23、 Edition20) All of the following statements about regulatory objectives of insurance rate making are true EXCEPTA) One purpose of rate adequacy is to maintain the solvency of insurers.B) Rates unfairly discriminate if loss exposures that are similar with respect to losses and expenses are charged su
24、bstantially different rates.C) Insurers know in advance if the coverages marketed will be profitable, so rate regulation is not needed.D) Rates are excessive if policyholders are paying substantially more than the actual value of their protection.Answer: CQuestion Status: Previous Edition21) The uni
25、t of measurement used in property and casualty insurance pricing is called theA) unit rate.B) premium.C) exposure unit.D) experience unit.Answer: CQuestion Status: Previous Edition22) The portion of an insurance premium allocated to expenses, profit, and a margin for contingencies is called theA) lo
26、ading.B) pure premium.C) gross premium.D) experience rate.Answer: AQuestion Status: Previous Edition23) Which of the following statements about judgment rating is trueA) It involves the manual rating of exposures.B) It is used when the loss exposures are so diverse that a class rate cannot be calcul
27、ated.C) It is a form of experience rating.D) It is only used when credible loss statistics are available.Answer: BQuestion Status: Previous Edition24) Under one type of merit rating, the class or manual rate is adjusted upward or downward based on past loss history. This type of merit rating is call
28、ed A) schedule rating.B) judgment rating.C) experience rating.D) retrospective rating.Answer: CQuestion Status: Previous Edition25) All of the following statements about class rating are true EXCEPTA) Exposures with similar characteristics are placed in the same underwriting class.B) The rate charge
29、d for each class reflects the average loss experience for that class.C) The complexity of class rating makes it inappropriate for personal lines coverages.D) It is based on the assumption that future losses to insureds will be determined by the same classification factors currently in use.Answer: CQ
30、uestion Status: Previous Edition26) Under the pure premium method of determining class rates, the gross rate is determined by which of the following formulasA) pure premium/(1 + expense ratio)B) pure premium/(1 - expense ratio)C) (1 + pure premium)/expense ratioD) expense ratio/(1 - pure premium)Ans
31、wer: BQuestion Status: Previous Edition27) The expected loss ratio for a class of business is 60 percent. What change would be indicated in the level of rates under the loss ratio method if the actual loss ratio turned out to be 68 percentA) percent increase B) percent increaseC) percent increaseD) percent increase Answer: BQuestion Status: Previous Edition28) Which of the following statements about schedule rating is (are) trueI. It involves the determination of a basis rate for each exposure, which is then modified by
