The principal method(s) that are used to regulate insurers are _________.

legislation

the courts

state insurance departments

all of the above

Life and health insurance are examples of ___________ insurance.

personal lines

private

government

social

A ________ policy is a policy that pays the face amount of insurance if a total loss occurs

replacement cost insurance.

valued insurance

life insurance

health insurance

Why are some mutual insurers referred to as "assessment mutuals"?

They charge low premiums because the loss exposures of their insureds are thoroughly assessed before a policy is written.

They are noted for being very thorough in their assessment of investment opportunities.

They are assessed for state premium taxes only if they make a profit.

d. They can assess policyholders if premiums are insufficient to pay losses and expenses

Uncertainty concerning the occurrence of a loss is referred to as ___________.

the law of large numbers

objective risk

subjective risk

risk

Which of the following is a characteristic of insurance?

Pooling of losses

Avoidance of risk

Payment of intentional losses

Certainty about specific losses that will occur

_______ are statements that provide information about the particular property of activity to

Definitions

Declarations

Exclusions

Conditions

Risk management is concerned with

The identification and treatment of loss exposures.

The management of speculative risks only.

The management of pure risks that are uninsurable.

The purchase of insurance only.