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1. I. An insurance company can be legally chartered, personnel can be hired, and policy forms can be printed but no business is produced until a policy is sold. II. It is the responsibility of the insurance agent to keep their clients' insurance programs up to date.

• A. I is true and II is true
• B. I is true and II is false
• C. I is false and II is true
• D. I is false and II is false

2, I. A typical property and casualty company does not provide loss control services. II. Loss control specialists provide valuable advice on construction or activities to reduce the frequency or severity of a loss.

• A. I is true and II is true
• B. I is true and II is false
• C. I is false and II is true
• D. I is false and II is false

3. Both agents and brokers are intermediaries in insurance transactions. Which of the following statements is true?

• A. They both can represent either the insurer or the insured.
• B. Agents represent the insurer while brokers represent the insured.
• C. Agents represent the insured while brokers represent the insurer.
• D. Neither agents nor brokers earns commissions from insurance sales.

4. I. The primary objective of underwriting is to attain an underwriting profit. II. Underwriting standards do not generally vary by insurance company.

• A. I is true and II is true
• B. I is true and II is false
• C. I is false and II is true
• D. I is false and II is false

5. Which of the following roles within an insurance company classifies the insurance applicant to determine whether the company is willing to insure?

• A. Underwriter
• B. Actuary
• C. Accountant
• D. Legal

6. I. Facultative reinsurance is used when the primary insurer has agreed to cede insurance to the reinsurer, and the reinsurer has agreed to accept all business. II. In an excess-of-loss reinsurance agreement, the reinsurer pays part or all of the loss that exceeds the ceding company's retention limit up to a set maximum.

• A. I is true and II is true
• B. I is true and II is false
• C. I is false and II is true
• D. I is false and II is false

7. Which of the following roles in an insurance company participates in the sales of insurance?

• A. Reinsurance
• B. Accountant
• C. Underwriter
• D. Producer

8. Jan is employed by an insurance company. She reviews applications to determine whether her company should insure the applicant. If insurable, Jan assigns the applicant to a rating category based on the applicant's degree of risk. Jan is a(n)

• A. Underwriter
• B. Broker
• C. Claims adjustor
• D. Loss control engineer

9. Which of the following roles within in an insurance company is most involved with the determination of loss reserves?

• A. Underwriter
• B. Information systems analyst
• C. Actuary
• D. Claims representative