1. Identify the coverage that fills in the coverage gap that arises when the negligent party meets the financial responsibility law of the state, but the auto accident victim has losses in excess of the negligent driver’s liability limit.

Stacking coverage

Supplementary motorist coverage

Nonfortuitous coverage

Underinsured motorist coverage

Uninsured motorist coverage

2. In a population pyramid, a pyramid with a very large base would mean a large number of:

old people.

smokers.

young children.

working individuals.

females.

3. In addition to covering an insured’s liability due to bodily injury or property damage, the insurer promises to defend against suits claiming such injuries. The insurer’s obligation to defend against liability ends when:

the claims are filed after the retroactive date.

a number of exclusions are intended to standardize the risk and/or to limit duplicate coverage.

it has paid out its limits for any of the coverages in settlements or judgments.

the claims are filed after the extended reporting period.

the time lag between premium payments and loss payments is smaller.

4. These accounts allow employees to pay for specified benefits with before-tax dollars. In the absence of a these account, the employee would have purchased the same services with after-tax dollars. They can either add flexibility to a cafeteria plan or can accompany traditional benefit plans with little other employee choice. Identify these accounts.

Modular plus accounts

Premium conversion accounts

Core plus accounts

Modular conversion accounts

Flexibility spending accounts