1) Two buildings are located close together at a production facility. The probability that one of these buildings will experience a loss is 10%. However, if one building has a loss, the probability that the second building will have a loss is 6%. Based on the aforementioned information, the probability for both to experience a loss given events are dependent is: Select one: a. 0.01 b. 0.20 c. 0.16 d. 0.006

2)Nada owns a property and liability insurance agency. She is authorized to represent several insurance companies and she is compensated by commissions. Sarah's agency owns the expiration rights to the business she sells. Sarah is a (n) Select one: a. exclusive agent. b. insurance broker. c. independent agent. d. direct writer. 3)A is an insurer owned by a parent firm for the purpose of insuring the parent firm's loss exposures Select one: a. Private insurance b. Captive insurance c. Public insurance d. None of the above 4)means that financial institutions now sell a wide variety of financial products that earlier were outside their core business area Select one: a. Consolidation b. Convergence c. Merger d. Acquisition 5)A property and casualty agent has the power to bind the insurer with respect to certain types of coverage. Select one: a. False b. True 6)Adam estimates in May that he will harvest 20,000 bushels of corn by December. The price on futures contracts for December corn is $ 5.90 per bushel. Adam decides to use a future contact to hedge commodity price risk. His total revenue If price drops to $ 5.40 will be and if price rises to $ 6.40. Select one: a. 108,000; 118,000. b. 108,000; 128,000. c. 118,000; 118,000. d. 118,000; 128,000.