18 Questions
What is the main responsibility of an insurance carrier?
Assuming the risk covered in policies
Which term refers to insurance that is purchased by an insurance company to pass on some of its insurance liabilities to another company?
Reinsurance
What do exclusions do in an insurance policy?
Eliminate coverage for certain risks
A claims adjuster's main role involves:
Investigating insurance claims to determine liability
What is the primary focus of a claims processor's job?
Analyze and process insurance claims
Property/Casualty insurance primarily helps protect against:
Property damage and liability exposure
In the insurance industry, what does Standard Insurance refer to?
Insurance with standardized limitations and exceptions
'Claims Processor' typically works in collaboration with:
Doctors' offices and insurance companies
What is the primary function of reinsurance in the insurance industry?
To help insurance carriers manage risk by passing on some of their liabilities to other companies
How do independent claims adjusters differ from claims processors in the insurance industry?
Independent claims adjusters are employed by insurance carriers, while claims processors are third-party service providers
What distinguishes captive insurance companies from standard insurance companies?
Captive insurance companies insure only their parent company's risks, while standard insurance companies offer policies to external clients
What purpose do exclusions serve in an insurance policy?
To limit the coverage provided by the policy
Which statement best describes the role of claims adjusters in the insurance industry?
Claims adjusters assess, investigate, and negotiate settlements for insurance claims
In what way do excess insurance companies differ from standard insurance companies?
Excess insurance companies provide coverage beyond the limits of standard policies
Why do insurance carriers often rely on reinsurance in the industry?
To reduce their claim payouts
What distinguishes property/casualty insurance from life insurance in terms of coverage?
Property/casualty insurance covers assets like homes and cars, whereas life insurance provides financial protection upon death
What is a common disadvantage associated with standard insurance companies?
The cost of premiums is typically higher than competitors
What defines excess insurance companies in terms of coverage?
They only cover risks up to the standard policy limits before kicking in as a second layer of protection
Test your knowledge of insurance industry terms like Insurance Carrier, Reinsurance, and Exclusion. Understand the definitions and concepts related to insurance policies and coverage.
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