insurance and risk management

true or false

41-53

41. A Risk Retention Group usually pays taxes to the state guarantee association.

42. Intellectual capital is defined as a firm's employees.

43. A premises owner has no legal duty to protect a trespasser who is explicitly prohibited from entering the premises.

44. Too much risk aversion can have a detrimental effect on the company profits.

45. Insurance is a means of exchanging a small certain amount for an uncertain possibly catastrophic amount.

46. An insurance binder is only a temporary insurance declaration - there are no conditions included in the binder.

47. Insurance is a way of paying for losses in advance.

48. Actuaries use statistics and past claims histories to determine the rates that insurance companies charge for their coverage.

49. The NAIC has the power to make and enforce legally binding rules for insurers.

50. Insurance is a product that is purchased on a voluntary basis.

51. Whereas most employee benefits are regulated t the federal level, insurance is primarily regulated at the state level.

52. "Self-insurance" means that the insured has elected to forego insurance.

53. State insurance commissioners may regulate how insurers maintain their reserves.