1. ___________ is similar to a bond but the repayment of principal usually must be approved by state insurance regulators.

a. A surplus note

b. A reciprocal insurer

c. none of the answers is correct.

d. A mutual insurer

e. Pro-rate reinsurance

2. Value at risk:

a. means that a business or individual retains the obligation to pay for part or all of the losses.

b. refers to the maximum loss that can reasonably expected to occur in a given period with a relatively high level of confidence and this value is well-known in financial risk management.

c. is about damage to productive assets.

d. is sometimes defined as risk where the random outcome can only result in loss and there is no possible outcome involving a financial gain.

e. none of the answers is correct.