Docsity
Log inSign up
Docsity
Prepare for your exams
Prepare for your exams

Study with the several resources on Docsity

Earn points to download
Earn points to download

Earn points by helping other students or get them with a premium plan

Guidelines and tips
Guidelines and tips
Sell on Docsity
Sell on Docsity
Log inSign up

Prepare for your exams

Study with the several resources on Docsity

Find documents

Prepare for your exams with the study notes shared by other students like you on Docsity

Search Store documents

The best documents sold by students who completed their studies

Search through all study resources
Docsity AINEW

Summarize your documents, ask them questions, convert them into quizzes and concept maps

Explore questions

Clear up your doubts by reading the answers to questions asked by your fellow students

Earn points to download

Earn points by helping other students or get them with a premium plan

Share documents
download point icon20 Points

For each uploaded document

Answer questions
download point icon5 Points

For each given answer (max 1 per day)

All the ways to get free points
Get points immediately

Choose a premium plan with all the points you need

Study Opportunities

Choose your next study program

Get in touch with the best universities in the world. Search through thousands of universities and official partners

Community

Ask the community

Ask the community for help and clear up your study doubts

University Rankings

Discover the best universities in your country according to Docsity users

Free resources

Our save-the-student-ebooks!

Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors

From our blog

Exams and Study
Go to the blog

AINS 101 Insurance IQ Final Exam: Questions and Answers, Exams of Nursing

Hillsborough Community CollegeNursing

A final exam for ains 101 - increasing your insurance iq, featuring questions and verified answers. It covers key concepts in insurance, including risk management, policy types, insurer operations, and regulatory compliance. The exam questions test understanding of insurance principles and their application in various scenarios, making it a valuable resource for students and professionals in the insurance field. It provides a comprehensive review of essential insurance topics, enhancing knowledge and practical skills in the industry. Useful for university students and lifelong learners.

Typology: Exams

2024/2025

Available from 06/11/2025

Nurseexcel
Nurseexcel 🇺🇸

5

(1)

832 documents

1 / 19

Toggle sidebar

This page cannot be seen from the preview

Don't miss anything!

bg1
1
e
/
e
19
AINS 101 - Increasing Your Insurance IQ Final Exam
Questions and Verified Answers
1. Whicheofetheefollowingerepresentseuncertaintyeabouteoutcomesethatecanebeenegativeeore
positive?:eRisk
2. Theeprimaryeroleeofeinsuranceeiseto:eIndemnifyeindividualseandeorganizationseforecoveredelo
sses.
3. TheeinsuranceeagentesuggestedethateSally'seSnackeShopebuyeaepolicyethatecombinesepr
operty,ecrime,eandeliabilityecoverageeintoeoneepolicy.eThiseisere-
eferredetoeaseasea(n):eCommercialepackageepolicye(CPP)
4. Coverageeforemoneyeandeotherebusinessepropertyefromevariousecauseseofelossesuche
aseburglary,erobbery,etheft,eandeemployeeedishonestyetypicallyeprovidedeby:eCommercia
lecrimeeinsruance
5. InsuranceeCompanyewroteeaecommercialeliabilityepolicyeforeaemanufacturereofeoff-
roademotorcycles.eTheepotentialecosteofetheeinsured'selosseexposureeexceedeInsuranceeCo
mpany'secapacity.eInsuranceeCompanyecouldeconsiderewhicheoneeofetheefollowingetypeseofe
contractualetransferringeagreementetoemeeteitseneeds?:eReinsurance
6. Whicheoneeofetheefollowingecorrectlyedescribeseaereasoneforegovernmenteinvolvementei
neproperty-
casualtyeinsruance?:eGovernmenteprogramsecanemeetelegitimateepublicedemandseunmetebye
privateeinsurers.
7. AVAeiseaestarteupecompanyethatedevelopsesafetyetechnologiesethatecanebeesoldetoeco
mpaniesethateareeproducingeautonomousevehicles.eOneeTech-
enologyeAVAeisedevelopingeallowseaneautonomousevehicleetoedetect,eextract,
andeanalyzeeimages;eandethenetoerespondetoethoseeimages.eForeexample,etheetechnologyew
ouldedetecteaepresenceeineaecrosswalk,eextractetheeimage,eandeaecomputerewouldeanalyzeet
heeimage.eWhenetheeimageewasedeterminedetoebeeaehumanebeing,etheevehicleewouldeslowed
owneorestopeuntiletheecrosswalkewaseclear.eThisetechnology,ewhicheisedesignedetoecaptureea
ndeanalyzeeimages,eandetoeacteonetheerecognitioneofetheeimageeidecalled:eComputerevision
pf3
pf4
pf5
pf8
pf9
pfa
pfd
pfe
pff
pf12
pf13

Partial preview of the text

Download AINS 101 Insurance IQ Final Exam: Questions and Answers and more Exams Nursing in PDF only on Docsity!

AINS 101 - Increasing Your Insurance IQ Final Exam

Questions and Verified Answers

  1. Whicheofetheefollowingerepresentseuncertaintyeabouteoutcomesethatecanebeenegativeeore positive?:eRisk
  2. Theeprimaryeroleeofeinsuranceeiseto:eIndemnifyeindividualseandeorganizationseforecoveredelo sses.
  3. TheeinsuranceeagentesuggestedethateSally'seSnackeShopebuyeaepolicyethatecombinesepr operty,ecrime,eandeliabilityecoverageeintoeoneepolicy.eThiseisere- eferredetoeaseasea(n):eCommercialepackageepolicye(CPP)
  4. Coverageeforemoneyeandeotherebusinessepropertyefromevariousecauseseofelossesuche aseburglary,erobbery,etheft,eandeemployeeedishonestyetypicallyeprovidedeby:eCommercia lecrimeeinsruance
  5. InsuranceeCompanyewroteeaecommercialeliabilityepolicyeforeaemanufacturereofeoff- roademotorcycles.eTheepotentialecosteofetheeinsured'selosseexposureeexceedeInsuranceeCo mpany'secapacity.eInsuranceeCompanyecouldeconsiderewhicheoneeofetheefollowingetypeseofe contractualetransferringeagreementetoemeeteitseneeds?:eReinsurance
  6. Whicheoneeofetheefollowingecorrectlyedescribeseaereasoneforegovernmenteinvolvementei neproperty- casualtyeinsruance?:eGovernmenteprogramsecanemeetelegitimateepublicedemandseunmetebye privateeinsurers.
  7. AVAeiseaestarteupecompanyethatedevelopsesafetyetechnologiesethatecanebeesoldetoeco mpaniesethateareeproducingeautonomousevehicles.eOneeTech- enologyeAVAeisedevelopingeallowseaneautonomousevehicleetoedetect,eextract, andeanalyzeeimages;eandethenetoerespondetoethoseeimages.eForeexample,etheetechnologyew ouldedetecteaepresenceeineaecrosswalk,eextractetheeimage,eandeaecomputerewouldeanalyzeet heeimage.eWhenetheeimageewasedeterminedetoebeeaehumanebeing,etheevehicleewouldeslowed owneorestopeuntiletheecrosswalkewaseclear.eThisetechnology,ewhicheisedesignedetoecaptureea ndeanalyzeeimages,eandetoeacteonetheerecognitioneofetheeimageeidecalled:eComputerevision
  1. MFCeofferseaewideearrayeofemutualefundeoptionsetoeinvestors.eEachemutualefundehaseaedi fferentefundeobjectiveeandeseteofeinvestmenteguidelinesethateapplyetoetheefund.eWhileeMFCe giveseconsiderableefreedometoeitsefundeportfolioemanagers,etheyeareerequiredetoeabideebyet heefundseinvestmenteguidelines. Toemonitorecompliance,eMFCedevelopedeaecomputerealgorithm.eTheecomputerealgorithmec ontinuouslyemonitorseeachefund'secomplianceewitheinvestmenteguidelines.eIfeaefundemanag ereviolatesetheeinvestmenteguidelines,etheecomputereimmediatelyenotifieseMFC'seinternalec ontroledirector,eandecorrectiveeactioneisetaken.eMFC'seuseeofetheecomputerealgorithmetoemon itoreinvestmentecomplianceeandetoeprovideenotificationewhenecorrectiveeactioneisenecessary eillustrateseuseeof:eArtificialeintelligence

teeinsurers.eWhicheofetheefollowingeisetheebest rationaleeforetheeMAIFeprogram?:eAutoeinsuranceeisecompulsory,eandetheeprogramemakeseitepo ssibleeforealletheedriversetoehaveereasonablyepricedeinsurance.

  1. ABCeInsuranceeCompanyedecidedetoeautomateemosteofeitsepersonalelineseunderwritin gefunctions.eTheecomputerehasebeeneprogramedewitheacceptableeanswersetoetheequestion s.eIfetheeanswerseonetheeappeareealleacceptable,etheepolicyeiseautomaticallyeissued.eReject edeappseareeautoeforwardedetoeaehuman

underwriterewhoereviewsethem.eABCeInsuranceeCompany'seuseeofecomputersetoeevaluatee appseelectronicallyeiseaneapplicationeof:eArtificialeintelligence

  1. Whicheoneeofetheefollowingedescribesetheecharacteristicseofeaemutualeinsur- eanceecompany?:eAecorporationeownedebyepolicyholdersethateprovideseinsuranceetoeitsepolicy holders.
  2. Aetypeeofeaneinsurerethateiseownedebyepolicyholderseandemayepayedividendsetoepolicyhol derseaseaereturneofeaeportioneofepremiumsepaideisea:eMutualeinsurer
  3. Whicheofetheefollowingestatementseisecorrecteregardingegovernmentein- evolvementeineinsurance?:eFederaleandestateegovernmenteareeinvolvedeineinsuranceetoehelpefaci litateecompulsoryeinsuranceepurchases.
  4. Carloseisenewetoetheeinsuranceebusinesseandeiselearningeabouteinsuranceeregulationea ndewhatehe,enoweworkingewitheGradyeInsurance,ewilleneedetoebeeawareeoferegardingetheesub jecteofecompliance.eWhicheoneeofetheefollowingewilleCarlosefindeiseaccurateeaseheebettereund erstandsewhyeinsuranceeiseregulated?- :eInsuranceeregulationeprotectsecustomersebyeguaranteeingeinsuranceeiseavailableeandeaccessi bleetoeeveryoneewhoeneedseit.
  5. Oneeofetheereasonseforeinsuranceeregulationeisetoepreventedestructiveecompetition.eIne whicheoneeofetheefollowingescenariosewouldedestructiveecom- epetitionebeeexhibited?:eEasteinsuranceecomeseupewitheaenewerateestructureeallowinge"preferred ecustomers"ediscountedepoliciesewhenetheyecontinuallyereneweyeareaftereyear;eEasteeventually eloseseneedederevenueebuteiserewardedebyeitsecompetitorseleavingetheemarket.
  6. Whatetermerefersetoetheeabilityeofeaneinsureretoemeeteitseobligationseasetheyebecomeedu e?:eSolvency
  7. Whicheofetheefollowingeiseaenon-admittedeasset?:eOfficeeequipment
  8. Whicheoneeofetheefollowingeisetheebestemeasureeofetheeamounteofeinsuranceeprovidedefo reaegiveneperiod.:eEarnedepremium
  9. Admittedeassetseareetypeseofepropertyethateregulatorsealloweinsurersetoeshoweaseasset seonetheirefinancialestatementsebecauseetheyeare:eEasilyeconvert-eedetoecash
  10. Expenseeratioeformula:eIncurredeunderwritingeexpensese/ewrittenepremiums
  11. Combinederatioeformula:eExpenseeratioe(incurredeunderwritingeexpensese/ewrit- etenepremiums)e+elosseratioe(incurredelossese/eearnedepremiums)
  1. Aseitecontinuesetoegrow,eAnchoyeInsuranceeiseexaminingeotheredistributionechannelsetoe moreeeffectivelyemarketeitseproducts.eThroughethiseexperience,ewhicheofeoneetheefollowinge willeAnchoyemostelikelyelearn?:eAnchoyecaneuseegroupemarketingetoetargetelargeenumberseofere centelocalecollegeegraduates.
  2. RenegadeeInsuranceeprideseitselfeoneitseupstandingereputationethroughe itsecommitme ntetoesmallecommunities'ehomeownersecoverageeneedseoveretheepaste 20 eyears.eWhicheoneo feRenegadeseactionseoverethisetimeewouldebesteillustrateeitsecontinuedecommitmentetoem aintainingeitsesolvency?:eRenegadeekeepseenoughecasheassetseonehandetoecovereclaimseonepol icieselongeaftereitecollectedetheepremiumefromecustomers.
  3. Aneinsurer'sefinancialestatementeshowseaelossereserveeandeaneunearnedepremiumer eserve.eTheseereserveseareeparteofetheeinsurer's:eTotaleliabilities
  4. Aneinsurer'sebalanceesheetecanebestebeedescribedeasea:eSnapshoteofeitsefinancialep osition.
  5. Mosteofetheeincomeeaneinsurerereceiveseiseeitherefromeunderwritingeor:eIn-evestments
  6. Aneinsurer'seincomeestatementecanebestebeedescribedeaseaefinancialestate- ementethateshowsethe:eRelationshipebetweenerevenues,eexpenses,eandeneteincome.
  7. Whicheoneeofetheefollowingetypeseofefinancialestatementseshowsetheefinan- ecialepositioneofeaneinsuranceecompanyeateanyeparticularepointeinetime?:eBalanceesheet
  8. ifeaneinsurerseadmittedeassetsestayedetheesameebuteitseliabilitiesedecreasedesignificantl y,eitsepolicyholdersesurplusewould:eDecrease
  9. Whicheoneeofetheefollowingeiseshowneonetheebalanceesheeteofeaneinsurer?- :eCasheandeshort-termeinvestments
  10. Aneinsurer'seincomeestatementeshowseamountseforealleofetheefollowing,eEXCEPT::eP olicyholders'esurplus
  11. Whicheoneeofetheefollowingebesteexplainsewhyeregulatorsedoenotepermiteinsurersetoe includeeassetseofetheirebalanceesheet?:eTheyecannotebeereadilyeconvertedetoecash.
  12. Alleofetheefollowingeappeareoneaneinsurer'sebalanceesheet,eEXCEPT::eNeteincome
  13. Alleofetheefollowingeareecategorieseofeliabilitiesefoundeoneaneinsurer'sebalanceesh eet,eEXCEPT::ePolicyholders'esurplus
  14. Whicheoneeofetheefollowingeiseparteofewrittenepremiums?:eUnearnedepremi-eums
  15. Clareeiseaecommercialelineseunderwriter.eSheealwaysetriesetoefolloweunder-

ewritingeguidelines,eeffectivelyeevaluateelosseexposures,eandechargeeadequate

eunderwriters?:eReviseeunderwritingeguidelines

  1. Annaewasereviewingeaneall- linesesubmissioneforeSPeMarkets.eSPeMarketseownseandeoperatese 5 esmallegroceryestoresel ocatedeinetheesuburbseofeBoston.eTheestoresealleseemetoebeewellemaintainedeandeclean.eW hileetheeoverallelosseexperienceeonetheeaccounteisegooderelativeetoetheeindicatedepremiu m,etheelosserunseshoweaefrequencyeofesmallegeneraleliabilityeclaimsefromecustomer

slipseandefalls.eRatherethanerejectetheeapplicationeforeSPeMarkets,eAnnaewouldelikeetoesugge steaecoverageemodificationetoetheeproducerethatecouldemakeetheeapplicationeacceptableea ndepossiblyeaddevalueeforetheeinsured.eWhicheoneeofetheefollowingeiseaegoodecoverageemodi ficationeforeAnnaetoesuggest?:eProposeetheegeneraleliabilityecoverageeateaelowerepremiumelevel ,ebuteapplyeaesmalledeductible.

  1. Aseaneexperiencedeunderwriter,eRickehaselearnedetoemakeeeveryeeffortetoeavoideae mistakeethatecaneproduceeinsufficientepremiumetoecoverelosses,eorepricingethateisn'tec ompetitive.eWhicheoneeofetheefollowingeunderwritingemistakesecaneoftenecauseetheseei ssues?:eMisclassifyingeexposures
  2. Produce,esucheaseappleseoregrapes,emayebeepricedebyetheeuniteorebyetheepound.eInein surance,etheseemeasureseareesimilareto:eExposureeunits
  3. Bobeiseshoppingeforeautoeinsurance.eInsuranceeCompanyeA'seratingesystemedetermineset hateBobeshouldebeechargee$800epereauto.eIfeBobeiselookingetoeinsureefoureautos,ewhatepremi umewilleheebeechargedebyeInsuranceeCompanyeA?:e$3,
  4. Theesizeeofeaneemployer'selosseexposureeforeworkersecompensationeinsur- eanceeisebasedeon:eTheeamounteofeitsepayroll
  5. Johanneiseaneinsuranceecompanyeemployeeewhoeinvestigatesetheesceneeofeaelosseandem eetsewitheinsureds,eclaimants,elawyers,eJohanneisemosteaccuratelyecalled:eAefieldeclaimserep resentative
  6. StephanieeworkseforeWaynesgoodeInsurance.eSheeappreciatesetheehelpesheereceivedefr omeClemeinetheecompany'seclaimsedepartmentewhoeprovideseherewitherecentestatisticsean decommentseoneWaynsgood'secustomeresatisfactionelevels.eStephanieeworkseinewhicheonee ofetheefollowingedepartments?:eMarketing
  7. JeromeeWildereiseaeclaimserepresentativeewitheHermanieInsurance.eWhichegroupeofea ctivitieselistedebelowewouldebesteexemplifyeJerome'seactions.eInetheeorderetheyeareegiven ,easeheesystematicallyehandleseaenewelosseinehiserole:eAcknowledgingetheeclaime- eidentifyingetheepolicye-econtactingetheeinsured
  8. Understandingetheestepseinetheeclaimsehandlingeprocesseiseimportantetoeneweclaimser eps.eWhicheoneeofetheefollowingestepsegenerallyecomeseaftereinvestigatingeandedocumenti ngetheeclaimseandebeforeeconcludingetheeclaim?- :eDeterminingecauseeofelosseandelosseamount.
  1. Reggie,eHarper,eKimmie,eandeStefaneworkeinetheeclaimsedepartmenteofeNortheInsurancee Companye(NIC).eWhicheoneeofetheefollowingeisetrueeregardingetheevariousetypeseofeclaimsep ersonneleemployedeateNIC?:eStefan,eaeclaimesupervisor,ereviewefileseandehelpsedetermineestaff edevelopmentestrategies.
  2. Willis,eaeclaimserepresentative,eisecollaboratingewithehisecolleagueeSuzannaefromehiseins uranceecompany'seriskecontroledepartment.eHowewilleSuzannaehelpeWillis?:eProvideelaborat oryeanalysisewheneWilliseiseinvestigatingeaeclaim.
  3. HenryeiseaeneweclaimserepresentativeewitheAbleeInsurers.eWhicheoneeofe theefollowinge willeHenryefindeisetrueeaseheegainsemoreeexperienceewithehisecompany'seclaimsehandlingepr ocess?:eHenryewilledetermineetheetypeeofelosse-esucheasepropertyedamageeoreliabilitye- eforeeacheclaimeheehandles.
  4. WorkeoneaeneweclaimebeginseforeclaimserepresentativeeAnitaeuponereceipteofeaeclaimen otice.eAnitaegatherseinitialeinformationeandeverifiesecoverage.eFrometheelisteofeactivitiesebelo w,etheenextestepeAnitaewouldetakeeinetheeprocesseis:eSeteaelossereserve
  5. Aepersoneoreentityethatewouldesuffereaefinancialelosseifepropertyewereedamagedeh as:eAneinsurableeinterest.
  6. Bill'sethreeeyeareoldestereoewasecompletelyedestroyedeineaecoveredeloss.eItseexpectedeu sefulelifeewase 10 eyears.eitsereplacementecosteise$600.eItseactualecashevaluee(ACV)eis:e$
  7. Compensatoryedamageserepresent:eActualeharmesuffered
  8. AftereMarvin'secarewasestolen,eandeheewasereimbursedeforetheelossebyeGreatsoneInsura nce,etheepoliceefoundeandereturnedetheevehicle,ewhichewasedentedeandespray- painted,ebutestillehadepartsethatecouldebeeusable.eGreatson'serightsetoerecovereandeselleoreot herwiseedisposeeofeinsuredepropertyeonewhicheitehasepaideaetotalelosseareecalled:eSalvageeri ghts
  9. Wayne,eaneinsured,esubmitseaeclaimeforeaesever-year- olderefrigeratorethatewasedamagededueetoelightening.eClaimserepresentativeeGuillaumeewille probablyefactoreineaneallowanceeforeweareandetear.eThiseisecalled:eDepreciation
  10. Damageseforepaineandesufferingeareeaeformeof:eGeneraledamages
  11. AdjustereTonieiseevaluatingedamageseineaebodilyeinjuryeliabilityeclaimewhereesheehasedete rminedethatetheeinsuredeisecompletelyeatefaulteforetheeaccident.eTheeclaimantesufferedeaespr aineandestraineinjuryetoehiseneck.eHisespecialedamagesetotale$1,500.eHeewaseouteofeworkefor

eaeweek,ewasedisabledeandepreventedefromeperformingesomeeregulareactivitieseforeaemont h,eandeattendedephysicaletherapyeforesixeweeks.eIneassessingegeneraledamages,eTonieshoul d:eUseepastecasesewhicheareesimilareaseaeguide.

  1. Whicheoneeofetheefollowingelistseprovidesetheeoptimumeordereoferesponsi- ebilitiesethateaeproduceremayeengageewitheanyecustomereoneaecontinualebasis?-
  1. Robert,eaeproducerefromeGrantleyeInsurance,eisealwaysealertetoechangeseinehereclien tselosseexposures.eWhyeisethisesoeimportant?:eImplementederiskemanagementetechnique semayeproveetoebeeineffectiveeorebecomeeobsolete.
  2. ProducereJosheneveretireseineencouragingeinsuredsetoeadopteandesustaineaerobusteandem easurableeriskemanagementeprogram.eAseparteofethiseeffort,ewhich

oneofetheefollowingewilleJoshefindeisetrue?:eRiskemanagementegoalseshouldebeeattainableetoeth eeorganization,ebutetheyeshouldealsoeposeeaechallenge.

  1. Insuranceedealseprimarilyewithelosseexposuresethateareefortuitous.eWhicheoneeofetheef ollowingestatementsebestecharacterizesefortuitouselosses?:eFortu- eitouselosseseareebeyondethateinsured'secontrol.
  2. ClaimsesupervisoreCharlotteeisereviewingetheeincomingeclaimseforetheedayetoedecideew hicheonesetoeassignetoevariouseclaimsereps.eOfethoseeclaims,ewhicheoneeofetheefollowingede scriptionsewilleCharlotteefindeiseaneexampleeofeaefortuitouseloss?:eAneunknownevandalespray
  • paintsegraffitieonetheeinsured'segarage.
  1. Aneinsurerehasedecidedetoetakeeaneextremelyenarroweinterpretationeofeaepropertyeinsur anceepolicyeprovisionetoelimitetheenumbereofelossepaymentseitewilleneedetoemake.eIterealize sethateitseinterpretationeiseprobablyewrong,ebuteiteknowsethateindividualeinsured'selosseamo untsewillebeesmall,esuchethatemosteinsuredsewillenotetakeetheetroubleetoefileelawsuitseagain steit.eTheeinsureremayebeeviolatingetheeprincipleethateaneinsuranceepolicyeis:eAecontracteofeut mostegoodefaith.
  2. Aneinsurerewillemakeeaelossepaymenteifeaneinsuredelosseoccurseandeifetheeinsuredeperf ormsecertaineduties.eThiseillustratesethateaneinsuranceepolicyeisea:eConditionalecontract
  3. Whenepreprintedeformsedoenoteprovideetheetermseofecoverageeneededebyeaeparticul areinsuredeoresmallegroupeofeinsureds,etheeinsureremay:eDrafteaemanuscripteformetoemeete theecustomer'seneeds.
  4. NewehomeownereandesmallebusinesseownereSallieelearnsethateaneinsuranceepolicyemaye containeotheredocumentsethaneitseinsuranceeforms.eAccordingly,ewhicheoneeofetheefollowi ngewilleSallieefindeisetrueeregardingehereneweinsuranceepurchases?:eSallie'seapplicationemaye containeendorsementsewhichemodifyetheebasicepolicyeform.
  5. Whicheoneeofetheefollowingemosteaccuratelyedescribeseoneeofetheepolicyeprovisionsei neaneinsuranceepolicy?:eTheeexclusionseareeineplaceetoereduceedupli-ecateecoverage.
  6. Theebigedifferenceebetweenepropertyeandeliabilityepolicieseareefoundeinetheir:eInsur ingeagreements.
  7. Ideallyeinsurableelosseexposureseareesubjectetoelossesethat:eAreedefiniteeinetime,ecause ,eandelocation.
  8. Adheringetoetheecharacteristicseofeaneideallyeinsurableelosseexposureeinesellingeinsur
  1. Insuranceepolicieseareewritteneinesucheaewayethatetheepartiesehaveetoeperformeo nlyeunderecertaineconditions,ebecauseeaneinsuranceecontracteisea:eConditionalecontra ct
  2. Lingehasenoticedethatehereneighborehaserecoveredemoneyeforetwoehome- eownersepropertyeclaimseandeaneautoedamageeclaimeheehasefiledeinerecenteyears.eLingehasebe enepayingeinsuranceepremiumseforemanyeyearseandehaseneveresufferedeaelosseoremadeeaecl aim.eSheefeelsethatehereinsuranceecontractseoveretheeyearsehaveebeeneworthlessetoeher.eW hateLingedoesenoteunderstandeisethatesheehasebeenepayingepremiumseineexchangeeforecontr act:eOfeunequaleamounts
  3. TheeInsuranceeServiceseOffice,eInce(ISO)ecommercialepackageepolicyeiseaneexampleeofe a:eModularepolicy
  4. Privateeinsurerseareereluctantetoeprovideewindstormeinsuranceeonecoastaleproperties.e Thiseisebecauseetheelosseexposuresefailetoemeetetheecriterionethateideallyeinsurableeexposu resemustebe:eIndependenteandenotecatastrophic
  5. Aneinsuranceepolicyeiseconsideredeaecontracteofeadhesionewheneiteisedraftedebye the:eInsurer