BF22 – 1.04 Insurance Terms Quiz
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Questions and Answers

What is the main responsibility of an insurance carrier?

  • Assuming the risk covered in policies (correct)
  • Processing insurance claims
  • Selling insurance policies
  • Providing reinsurance

Which term refers to insurance that is purchased by an insurance company to pass on some of its insurance liabilities to another company?

  • Claims Adjuster
  • Exclusion
  • Standard Insurance
  • Reinsurance (correct)

What do exclusions do in an insurance policy?

  • Extend the scope of coverage
  • Eliminate coverage for certain risks (correct)
  • Provide additional coverage
  • Reduce premiums for the policyholder

A claims adjuster's main role involves:

<p>Investigating insurance claims to determine liability (C)</p> Signup and view all the answers

What is the primary focus of a claims processor's job?

<p>Analyze and process insurance claims (A)</p> Signup and view all the answers

Property/Casualty insurance primarily helps protect against:

<p>Property damage and liability exposure (A)</p> Signup and view all the answers

In the insurance industry, what does Standard Insurance refer to?

<p><strong>Insurance</strong> with standardized limitations and exceptions (B)</p> Signup and view all the answers

'Claims Processor' typically works in collaboration with:

<p><strong>Doctors' offices</strong> and <strong>insurance</strong> companies (D)</p> Signup and view all the answers

What is the primary function of reinsurance in the insurance industry?

<p>To help insurance carriers manage risk by passing on some of their liabilities to other companies (C)</p> Signup and view all the answers

How do independent claims adjusters differ from claims processors in the insurance industry?

<p>Independent claims adjusters are employed by insurance carriers, while claims processors are third-party service providers (A)</p> Signup and view all the answers

What distinguishes captive insurance companies from standard insurance companies?

<p>Captive insurance companies insure only their parent company's risks, while standard insurance companies offer policies to external clients (A)</p> Signup and view all the answers

What purpose do exclusions serve in an insurance policy?

<p>To limit the coverage provided by the policy (C)</p> Signup and view all the answers

Which statement best describes the role of claims adjusters in the insurance industry?

<p>Claims adjusters assess, investigate, and negotiate settlements for insurance claims (B)</p> Signup and view all the answers

In what way do excess insurance companies differ from standard insurance companies?

<p>Excess insurance companies provide coverage beyond the limits of standard policies (D)</p> Signup and view all the answers

Why do insurance carriers often rely on reinsurance in the industry?

<p>To reduce their claim payouts (D)</p> Signup and view all the answers

What distinguishes property/casualty insurance from life insurance in terms of coverage?

<p>Property/casualty insurance covers assets like homes and cars, whereas life insurance provides financial protection upon death (C)</p> Signup and view all the answers

What is a common disadvantage associated with standard insurance companies?

<p>The cost of premiums is typically higher than competitors (D)</p> Signup and view all the answers

What defines excess insurance companies in terms of coverage?

<p>They only cover risks up to the standard policy limits before kicking in as a second layer of protection (C)</p> Signup and view all the answers

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