Nature of insurance, risk, perils, and hazards

A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a

A) treaty insurer
B) risk assumption group
C) risk retention group
D) captive insurer

Which of these statements regarding insurance is false?

A) pure risk can be insured
B) one way insurers deal with catastrophic loss is through reinsurance
C) speculative risk cannot be insured
D) as the number of insured units increases, the number of losses decrease

Which of the following is NOT an objective of the National Association of Insurance Commissioners?

A) protect the interest of policyowners and consumers
B) promote efficiency in the administration of insurance laws
C) regulate state insurance commissioners
D) encourage uniformity in state insurance laws

A(n)___ agent can represent several insurers.

A) captive
B) independent
C) career
D) free

Dividends from a stock insurance company are normally sent to

A) policyowners
B) shareholders
C) beneficiaries
D) insureds

For insurance purposes, similar objects which are exposed to the same group of perils are referred to as

A) homogeneous exposure units
B) similar exposure units
C) common hazards
D) homogenous perils

Who regulates an insurer's claim settlement practices?

A) national association of insurance commissioners
B) state insurance departments
C) national association of claims adjusters
D) state attorney general