Page 16 - CFPA-SCR-CII-W01-Corrigé des Quizz

A. coinsurance.
B. dual insurance.
C. reinsurance.
D. self-insurance.

7. In financial terms, why is insurance, as a means of risk transfer, attractive to a policyholder?

A. The administrative cost of handling claims is borne entirely by the insurer.
B. The policyholder is able to swap an unknown future loss with a specified cost now.
C. The policyholder’s premium is always less than potential future claims.
D. The policyholder’s cash flow is improved by upfront payment of the premium.

8. Dual insurance exists when:

A. more than one insurer underwrites the same policy.
B. more than one policy covers the same risk.
C. part of the risk is carried by a reinsurer.
D. part of the risk is carried by the insured.

9. A factory owner needs to take out employers’ liability insurance because it is a:

A. common law requirement.
B. health and safety requirement.
C. statutory requirement.
D. trade union requirement.

10. Helen works for an insurer providing financial and statistical theories to management, including
suggested premium rating and the calculation of the company’s financial status. Helen is most likely
to be a member of the:

A. British Insurance Brokers Association.
B. Chartered Institute of Loss Adjusters.
C. Institute and Faculty of Actuaries.
D. International Underwriting Association of London.

11. Direct insurance companies operate via the telephone or mail directly to:

A. advisers.
B. agents.
C. brokers.
D. consumers.

12. After investigating a liability claim for injury, from whom does the loss adjuster usually receive
payment of fees?