1. An independent adjustor represents the insured, and can be hired to settle disputed claims.

a.

False

b.

True

2. Insurance companies are always certain that the loss reserves established are sufficient to pay all losses and expenses.

a.

True

b.

False

3. Designed for major loss exposures, excess of loss agreement allows the insurer to transfer catastrophic losses that exceeds its retention limit to the reinsurer.

a.

False

b.

True

4. If an insurance company reports a loss ratio of 65%, it means that they did not charge sufficient premiums.

a.

False

b.

True

5. The claims settlement process begins with a notice of loss.

a.

False

b.

True