1. It may be correctly claimed that insurers usually do not pay for losses because:

a) it is the insured's money that is used to pay the claims

b) most insurers do not pay claims until the insured sues them

c) almost all claims are caused by fraud

d) insurers estimate claims actuarially in advance in order to avoid payments

2. which of the following is a true statement?

a) insurers are significant intermediaries in the U.S. economy

b) property insurers are prohibited from insuring commercial real estate

c) the insurance companies in the U.S. are estimated to be very profitable

d) Both A and C are true statements

3. smoking cigarettes is an example of;

a) moral hazard

b) peril

c) speculate risk

d) none of the above

4. the norris and manhart cases resulted in which of the following outcomes?

a) made insurance intrastate commerce

b) made it illegal to charge men and women different life insurance premiums

c) made it illigal to use gender as an underwritting factor in any type of insurance

5. from the viewpoint of an insurer, the prerequisites of an ideally insurable risk include all the following except:

a) the loss must be capable of being determines and measured

b) there must be a large, homogeneous group of exposure units

c) the loss should not be subject to catastrophic hazard

d) the peril should be such that the probability of loss is high: