1) All of the following statements about the independent agency system are true EXCEPT
A) The insurer rather than the agent owns the renewal rights to the business.
B) The agent is an independent business person who presents several insurers.
C) Agents are often authorized to adjust small claims. D) Agents are compensated on the basis of commissions.
2) Amy heads the legal staff of a large property and liability insurance company. Amy's staff is likely involved in which of the following activities?
A) calculating premiums to be charged for the insurer's products
B) reviewing applications to determine if the company should insure the risk
C) reviewing investment options for the insurer's assets
D) reviewing language and policy provisions in insurance contracts
3) All of the following statements about insurance regulation are true EXCEPT
A) The National Association of Insurance Commissioners (NAIC) can force states to adopt the model laws that it drafts.
B) Insurance commissioners are appointed in some states and elected in some states
C) Insurers are subject to regulation by certain federal agencies and laws.
D) An insurance commissioner can revoke or suspend an insurer's license to do business in his or her state.
4) Which of the following types of insurance policies can usually be assigned without the insurer’s consent?
I. Life insurance II. Property insurance
A) I only
B) II only
C) both I and II
D) neither I nor II
5) A grid charting the potential frequency and severity of losses is called a
A) risk management information system
B) risk management Intranet
C) risk map
D) risk management website