RM

IRM 3301: Chapter 5 & 6 Quiz

INSTRUCTIONS: Provide the # of each question with your answer directly within the body of an e-mail. Do not restate the question and - no attachments, please. You can use your book, notes, and any other study materials you developed throughout this course. This is your own work and should be completed exclusively by you.

1. A state requires prior approval of proposed rate changes only if they exceed 5 percent of existing rates. No prior approval is needed for proposed rate changes at 5 percent or less. This is an example of:

a) A use-and-file law

b) A file-and-use law

c) A flex-rating law

d) Open competition

2. In a certain insurance policy, although the insurer cannot terminate the policy during its annual term,

the insurer has the right to refuse to renew a contract and the right to alter policy provisions if the

contract is renewed. This type of renewable provision is referred to as _____________________ . 3. In a valued insurance contract the amount of recovery depends on

a. amount awarded by the courts

b. amount necessary to indemnify the policyholder

c. financial value of the contract

d. amount specified in the contract

4. You are an insurance agent working for an insurer that has not yet gained approval from the dept of

insurance where you will be selling insurance. Your company is known as

a. Alien insurer b. Unregistered party c. Unapproved firm d. Unauthorized entity

5. In an insurance policy, the principle of _______________ ensures that there is no gain from a loss,

rather the insured is made whole. Provide an example of how you’ve experienced this either through

business or personal insurance and risk management.