TDI DISASTER EXAM VERIFIED

TDI DISASTER EXAM VERIFIED

QUESTIONS AND ANSWERS

ACTUAL TEST

GRADED A

Quiz 1

• If Lowest Cost Insurance Company chooses to

accept his application for insurance, the insurer is the risk?• Retaining (Correct Answer) • Reducing • Avoiding • Transferring

• If Lowest Cost Insurance Company declines his

application for insurance, the insurer is the risk?• Retaining • Reducing • Avoiding (Correct Answer) • Transferring

• Mr. Jones' heart attack is best described as his

?• Risk 1 / 4

• Exposure • Peril (Correct Answer) • Loss

• If Lowest Cost Insurance Company rates the policy

premium in order to accept the risk, the insurer is the risk?• Retaining • Reducing (Correct Answer) • Avoiding • Transferring 2 / 4

Quiz 2

• When Mr. Ames policy is issued, who would be

considered his ceding company or companies?• ABC Insurance Corp.

• AIG

• Allstate Insurance • ProActive Corp. (Correct Answer)

• All of the following Element of Insurable Risk are

required by an insurer in order to issue a policy

EXCEPT:

• The loss must be uncertain in order for an insurer to accept a proposed risk.• Loss must be certain (Correct Answer) • Economic Hardship • Large number of homogenous units Correct

• If Mr. Ames (the insured) dies, which insurer will

issue the check to his loved ones?• ProActive Insurer Corp. (Correct Answer) • ABC Insurance Corp.

• AIG

• Allstate Insurance

• There are different forms of Reinsuring Agreements

between Insurers. ABC Insurance Corp. routinely handles potential risk and reinsures losses as they are accepted by ProActive Insurer Corp. Which form below best describes the reinsuring agreement in effect with ABC Insurance Corp?• Facultative 3 / 4

• Treaty (Correct Answer) • Normal • Ceding

Quiz 3

• The allows the insurer

to predict their future losses in a particular group of policyholders.• Morbidity Table • Loss Ratio • Experience Rating • Law of Large Numbers (Correct Answer)

• Which of the following groups of people would be

considered the best definition of Adverse Selection'?• A group of farmers. (Correct Answer) • A group of young interns • A group of secretaries • A group of college students

• Which of the following private insurers are

considered 'PAR'?• Stock Companies • Mutual Companies (Correct Answer) • Non-Profit Service Organizations • Special Non-Profit Organizations

• Which of the following private insurers are

considered NON-PAR'?• Stock Companies (Correct Answer) • Mutual Companies • Non-Profit Service Organizations

• / 4