please answer all questions - thank you so much!

31. The adjustments for various factors in life insurance premiums are known as premium elements. First, the premium is reduced because the insurer:

		recognizes that the insured has to pay taxes.
		expects to earn investment income.
		expects additional administrative expenditures.
		has transferred the risk to the insured.
		has a risk of not predicting future losses accurately

32. Most insurance policies prohibit direct access from the original insured to the reinsurer. The prohibition exists because:

		insurance companies realized that the original insured can take insurance directly from the reinsurance company and put them out of business.
		direct assess of the original insured to the reinsurer is illegal.
		reinsurance companies do not want to deal directly with original insureds.
		the insurance company does not want the original insured to know that it is reinsuring the risks.
		the reinsurance agreement is a separate contract from the primary insurance contract.

33. Identify the characteristics of a hard market.

		Insurance rates and insurance capacity are high
		Insurance rates are high and insurance capacity is low
		Insurance rates are low and insurance capacity is high
		Insurance rates and insurance capacity are low
		Insurance rates are negligible and insurance capacity is very high

34. Soft market conditions occur when:

		insurance losses and insurance prices are high.
		insurance losses are high and prices are very competitive.
		insurance losses are low and prices are very competitive.
		insurance gains are low and prices are very competitive.
		insurance gains and insurance prices are very low.

35. Each line of business has its own break-even point because:

		the firm uses different strategies for each line to mitigate risks.
		each line in an industry has a different loss payment time horizon but similar length of time for the investment of the premiums.
		each line in an industry has varying length of time for the investment of premiums but similar loss payment time horizon.
		all lines in an industry have similar loss payment time horizon and length of time for the investment of the premiums.
		each line has a different loss payment time horizon and length of time for the investment of the premiums.

36. In the insurance industry, identify the consequence of having a low combined ratio.

		Tightening of underwriting standards
		Stringent redlining standards
		Relaxed actuarial process
		Loose underwriting standards
		Decreased amount of cash that can be invested

37. Which of the following statements is true about the insurance regulation scheme?

		Under the current scheme, federal legislatures pass insurance laws that form the basis for insurance regulation.
		To ensure the smooth operation of insurance markets and the solvency of insurers, insurance laws are concerned only with the operations and investments of insurers.
		Trade practices, including marketing and claims adjustment, are not part of the law.
		The laws provide standards of financial solvency, including methods of establishing reserves and the types of investments permitted.
		State insurance laws are concerned not only with the licensing requirements for insurers,agents, brokers, and claims adjusters.

38. Nonlicensed insurers are permitted to sell insurance only if:

		no licensed company is willing to provide the coverage.
		they pay the nonlicense operation penalty to the commissioner of insurance.
		they conduct a joint venture with a licensed insurance firm.
		they are licensed in atleast five other states.
		the commissioner of insurance specifically permits it.

39. The law of agency is significant to insurance in large part because:

		the only direct interaction most buyers of insurance have with the insurance company is through an agent or a broker.
		it allows the insurance companies to interact directly with the buyers without the help of agents or brokers.
		it gives the insurance company the clarity it requires while passing it's authority as principle to the agent.
		it makes investigation of claims easier.
		it provides clarity on the types of risks and makes risk classification easier.

40. An insurance company suspends an agent, but the agent retains possession of blank policies. Which of the following is likely to happen if the former agent issues those policies?

		The company provides the suspension order of the agent in front of a judge and cancels those policies.
		The company waives the agent's authority and the existence of an agency relationship and cancels the policies.
		The premiums of these policyholders are paid back, and the policy cancelled by their consent.
		The court holds the authority to decide whether the policy stands or is canceled.
		The company is estopped from denying the existence of an agency relationship and will be bound by the policy.

4 points

41. Students who misrepresent to their auto insurers where their cars are garaged take the chance of having no coverage at the time of a loss because:

		location is a factor in determining premium rates and therefore, material fact.
		the insurance contracts of minors are voidable.
		auto insurers are very strict about misrepresentations and do not cover them even if the information is not a material fact.
		the auto insurance contracts of students are voidable.
		auto insurances do not cover auto thefts that occur in the insured's garage.

42. With cancelable policies, the insurer is responsible under a binder for losses that:

		occur due to pure risk exposures.
		the underwriter thinks are insurable.
		occur due to idiosyncratic risk exposures.
		occur throughout the term of the policy.
		occur prior to cancellation.

43. In an insurance policy, it states that the "insurer promises to pay...." This general description of the insurer's promises is the essence of:

		an insuring clause.
		the conditions of a policy.
		the exclusions of a policy.
		an endorsement.
		a rider.

44. Which of the following statements is true about open-perils policy and named-perils policy?

		Open-perils policies cover many perils not covered by named-perils policies.
		An open-perils policy covers only losses caused by the perils listed in the policy.
		A named-perils policy is also known as the "all risk" policy.
		The exclusions in a named-perils policy are more definitive of coverage than in an open- perils policy.
		A named-perils policy provides broader coverage than an open-perils policy.

4 points

45. The 1992 Chicago flood required that Marshall Fields downtown store close its doors for several days while crews worked to clean up damage caused by the flood waters. If Marshall Fields reduced its orders to suppliers of its goods, these suppliers would experience losses caused by the water damage, even though their own property was not damaged. Identify these losses.

		Dependent losses
		Contingent business interruption losses
		Extra expense losses
		Preventative losses
		Facultative business interruption losses

46. Which of the following statements is true about exclusions?

		Losses caused intentionally by the insured are not excluded.
		Wear and tear is included in insurance coverage.
		Exclusions encourage adverse selection and moral hazard.
		Losses that are not accidental make prediction difficult.
		Naturally occurring losses that are expected are not excluded in insurance coverages.

47. Motorized vehicles, furniture, business inventory, clothing, and similar items are properties that are not permanently attached to something else, and therefore are movable. Identify this category of physical property.

		Personal property
		Virtual property
		Non-depreciating property
		Real property
		Non-movable property

48. If you have a $500 deductible on the collision coverage part of your auto policy, you pay the total amount of any loss that does not exceed $500. In addition, you pay $500 of every loss in excess of that amount. If you have a loss of $1,500, therefore, you pay $500 and the insurer pays $1,000. Identify this type of deductible.

		Vanishing deductible
		Franchise deductible
		Waived deductible
		Straight deductible
		Disappearing deductible

49. Disputes over the rights to a domain name result from specific events. An event arises when a business or an individual reserves the well-recognized name or trademark of an unrelated company as a domain name with the intent of selling the domain name to the trademark holder. Identify this event.

		Cybersquatting
		Domain name hijacking
		Reverse cybersquatting
		Reverse domain name hijacking
		Website hijacking

50. The Insurance Services Office (ISO) has an e-commerce endorsement that modifies insurance provided under commercial property coverage. Identify the correct statement about this endorsement.

		Section I of the endorsement defines the period of coverage.
		Section II of the endorsement describes the electronic data coverage.
		Section III of the endorsement classifies covered and excluded perils.
		Section IV of the endorsement defines the coverage of business income, extra expenses, and resumption of e-commerce activity.
		Section V of the endorsement is for other provisions