Which one of the following statements is correct with regard to property loss exposures?

		Homes can be grouped into classes that face essentially the same loss potential.
		Commercial property exposures are easier to group into classes than individual homes.
		When insuring homes, insurers need not avoid excessive concentration of loss exposures.
		The property loss exposures associated with residential fires are not ideally insurable.

The first step of the DICE method is to examine the policy's

		Declarations.
		Conditions.
		Exclusions.
		Insuring agreement.

The other insurance provisions clause is used by insurers in most property and liability policies to

		Reduce information asymmetry.
		Allow for duplicate recovery.
		Limit overindemnification.
		Avoid the collateral source rule.

The property casualty insurance policy provisions that indicate who or what is covered, and where and when coverage applies, are found in the

		Definitions.
		Declarations.
		Insuring agreements.
		Miscellaneous provisions.

To determine the extent of coverage a policy provides, pre-loss policy analysis almost exclusively relies on

		Post-loss policy analysis.
		Scenario analysis.
		The DICE method.
		Coverage triggers.

Which one of the following statements is correct regarding the benefits provided by insurance?

		The reduction in losses paid by insurers due to risk control measures benefits individual insureds, but not society as a whole.
		Insurance helps reduce the financial burden to society by compensating accident victims.
		The primary role of insurance is to meet mandatory insurance requirements.
		Insurance reduces the financial consequences of loss exposures, but not the related uncertainty.

Which one of the following is an advantage of a manuscript form?

		It reduces the paperwork necessary for an insurance policy.
		The insurer does not have to keep a duplicate of each insured's entire policy.
		It is typically interpreted as a contract of adhesion.
		It can be specifically drafted or selected to cover a unique loss exposure.

Private insurers are reluctant to provide windstorm insurance on coastal properties. This is because the loss exposures fail to meet the criterion that ideally insurable exposures must be

A large number of similar exposure units.

Definite and measurable.

Fortuitous.

Independent and not catastrophic.

The DICE method of policy analysis entails four steps used to determine whether a policy provides coverage. The first step is a review of the applicable policy's

		Exclusions to determine whether they preclude coverage of the loss.
		Definitions to determine whether coverage is limited based on words with special meanings.
		Insuring agreements to determine the circumstances under which the insurer agrees to pay.
		Declarations page to determine whether it covers the person or the property at the time of the loss.

jack and Susan own and manage a hotel. They are concerned about their responsibility for the property of their guests and whether they have an insurable interest in that property and thus could buy insurance to cover their responsibility. Most courts would hold that they do have an insurable interest in the guests' property based on which one of the following legal bases?

		Factual expectancy.
		Exposure to legal liability.
		Contractual obligations.
		Representation of another party.

Jancy Meat Company, which provides beef products to supermarkets nationwide, faces the possibility of a contamination problem that could generate claims from many consumers of its products. Although Jancy is eager to purchase products liability insurance, insurers are reluctant to provide it because

		The exposure fails to involve a pure risk.
		The exposure fails to involve fortuitous losses.
		The number of claims resulting from a single loss could be catastrophic.
		The number of exposure units is small compared with other exposures.