Actuarial Science MCQ PDF

https://quizplus.com/study-set/239
27 Chapters
1397 Verified Questions
 Actuarial Science
MCQ PDF
Cou
Actuarial Science is a discipline that applies mathematical and statistical methods to

assess risk in industries such as insurance, finance, pensions, and investment. This

course introduces students to the foundational concepts of probability theory, financial

mathematics, life contingencies, and risk modeling, along with an overview of the

regulatory environment and professional standards governing the actuarial profession.

Emphasis is placed on developing quantitative analytical skills, problem-solving abilities,

and an understanding of real-world applications related to valuing future cash flows,

determining premiums, managing risk, and supporting effective decision-making in

uncertain financial contexts.

Recommended Textbook
Principles of Risk Management and Insurance 13th Edition by George E. Rejda

Available Study Resources on Quizplus

27 Chapters
1397 Verified Questions
1397 Flashcards
Source URL: https://quizplus.com/study-set/239

Page 2
 Chapter 1: Risk and Its Treatment
Available Study Resources on Quizplus for this Chatper
59 Verified Questions
59 Flashcards
Source URL: https://quizplus.com/quiz/3703

Sample Questions
Q1) Curt borrowed money from a bank to purchase a fishing boat. He purchased
property insurance on the boat. Curt had difficulty making loan payments because he
did not catch many fish, and fish prices were low. Curt intentionally sunk the boat,
collected from his insurer, and paid off the loan balance. This scenario illustrates the
problem of
A) adverse selection.
B) moral hazard.
C) nondiversifiable risk.
D) attitudinal hazard.
Answer: B

Q2) Which of the following is an example of consequential (indirect) loss?

A) the theft of a person's jewelry
B) the destruction of a firm's manufacturing plant by an earthquake
C) the cost of renting a substitute vehicle while a collision-damaged car is being
repaired
D) the vandalism of a person's automobile
Answer: C

To view all questions and flashcards with answers, click on the resource link above.

Page 3
 Chapter 2: Insurance and Risk
Available Study Resources on Quizplus for this Chatper
47 Verified Questions
47 Flashcards
Source URL: https://quizplus.com/quiz/3704

Sample Questions
Q1) According to the law of large numbers, what should happen as an insurance
company increases the number of loss exposures that it insures?
A) Fewer losses should be expected to occur.
B) The amount of premiums needed to cover losses should decrease.
C) The volatility of the insurance company's underwriting results should increase.
D) The difference between actual and expected results should decrease.
Answer: D

Q2) Methods by which insurers may minimize or avoid catastrophic losses include which
of the following?
I.The use of reinsurance
II.Concentrating coverage written in one geographic region
A) I only
B) II only
C) both I and II
D) neither I nor II

Answer: A

To view all questions and flashcards with answers, click on the resource link above.

Page 4
 Chapter 3: Introduction to Risk Management
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/3705

Sample Questions
Q1) ABC Insurance retains the first $1 million of each property damage loss and
purchases reinsurance for that part of any property loss that exceeds $1 million. The
insurance for property losses above $1 million is called
A) excess insurance.
B) liability insurance.
C) coinsurance.
D) primary insurance.
Answer: A

Q2) Which statement about a company's cost of risk is (are) true?

I.Cost of risk includes insurance premiums and retained losses.
II.Reducing the cost of risk increases profitability.
A) I only
B) II only
C) both I and II
D) neither I nor II

Answer: C

To view all questions and flashcards with answers, click on the resource link above.

Page 5
Chapter 4: Enterprise Risk Management and Related Topics
Available Study Resources on Quizplus for this Chatper
56 Verified Questions
56 Flashcards
Source URL: https://quizplus.com/quiz/3706

Sample Questions
Q1) RST Company has production facilities in Salt Lake City and Cleveland. The
probability that in any given year a fire will damage the production facility in Salt Lake
City is 5 percent. The probability that in any given year a fire will damage the Cleveland
production facility is 4 percent. What is the probability that AT LEAST ONE of the
production facilities will be damaged by fire in any given year?
A) 0.20 percent
B) 2.00 percent
C) 8.80 percent
D) 9.00 percent

Q2) Which statement is (are) true regarding property and liability insurance market
conditions?
I.Premiums are high when the insurance market is "hard."
II.Underwriting standards are tight when the insurance market is "soft."
A) I only
B) II only
C) both I and II
D) neither I nor II

To view all questions and flashcards with answers, click on the resource link above.

Page 6
 Chapter 5: Types of Insurers and Marketing Systems
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/3707

Sample Questions
Q1) Sarah owns a property and liability insurance agency. She is authorized to represent
several insurance companies and she is compensated by commissions. Sarah's agency
owns the expiration rights to the business she sells. Sarah is a(n)
A) independent agent.
B) exclusive agent.
C) direct writer.
D) insurance broker.

Q2) A reciprocal exchange is managed by a corporation that is authorized to collect

premiums, pay losses, invest funds, seek new members, and perform other functions.
This corporate manager is called a(n)
A) holding company.
B) attorney-in-fact.
C) resident agent.
D) captive manager.

Q3) Which of the following statements about stock insurers is true?

A) They issue assessable policies.
B) They are not permitted to write property and liability insurance.
C) Stockholders bear any losses and share in any profits.
D) They are owned by their policyholders.

To view all questions and flashcards with answers, click on the resource link above.

Page 7
 Chapter 6: Insurance Company Operations
Available Study Resources on Quizplus for this Chatper
52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/3708

Sample Questions
Q1) Which of the following statements is (are) true about life insurance company
investments?
I.The majority of life insurance company general account assets are invested in bonds.
II.The majority of life insurance company separate account assets are invested in stocks.
A) I only
B) II only
C) both I and II
D) neither I nor II

Q2) One source of life and health insurance underwriting information is an organization
that life and health insurance companies can join. As a member, life and health
insurance companies report health impairments of applicants, and this information is
shared with member companies. Although the information is shared, the underwriting
decision of the member company is not disclosed. What is this organization called?
A) Fair Isaac Corporation (FICO)
B) Medical Information Bureau (MIB)
C) National Association of Insurance Commissioners (NAIC)
D) National Association of Mutual Insurance Companies (NAMIC)

To view all questions and flashcards with answers, click on the resource link above.

Page 8
 Chapter 7: Financial Operations of Insurers
Available Study Resources on Quizplus for this Chatper
48 Verified Questions
48 Flashcards
Source URL: https://quizplus.com/quiz/3709

Sample Questions
Q1) The unit of measurement used in property and casualty insurance pricing is called
the
A) unit rate.
B) premium.
C) exposure unit.
D) experience unit.

Q2) Under one type of merit rating, the class or manual rate is adjusted upward or
downward based on past loss history. This type of merit rating is called
A) schedule rating.
B) judgment rating.
C) experience rating.
D) retrospective rating.

Q3) Which of the following statements about judgment rating is true?

A) It involves the manual rating of exposures.
B) It is used when the loss exposures are so diverse that a class rate cannot be
calculated.
C) It is a form of experience rating.
D) It is only used when credible loss statistics are available.

To view all questions and flashcards with answers, click on the resource link above.

Page 9
 Chapter 8: Government Regulation of Insurance
Available Study Resources on Quizplus for this Chatper
51 Verified Questions
51 Flashcards
Source URL: https://quizplus.com/quiz/3710

Sample Questions
Q1) Which of the following statements about the licensing of insurance companies is
(are) true?
I.A new capital stock insurer must meet minimum capital and surplus requirements,
which vary by state and line of insurance.
II.The licensing requirements for insurance companies are less stringent than those
imposed on most other types of firms.
A) I only
B) II only
C) both I and II
D) neither I nor II

Q2) An insurance company chartered in another country has been licensed to operate
in your state. In your state, the insurer would be considered a(n)
A) nonadmitted insurer.
B) foreign insurer.
C) alien insurer.
D) reciprocal insurer.

To view all questions and flashcards with answers, click on the resource link above.

Page 10
 Chapter 9: Fundamental Legal Principles
Available Study Resources on Quizplus for this Chatper
57 Verified Questions
57 Flashcards
Source URL: https://quizplus.com/quiz/3711

Sample Questions
Q1) Which of the following statements about offer and acceptance for insurance
contracts is true?
A) In property and liability insurance, agents typically do not have the authority to bind
coverage.
B) In life insurance, the agent can usually accept an offer by immediately binding
coverage.
C) In property insurance, the offer and acceptance are usually in writing but may be oral.
D) In life insurance, completing the application and paying the first premium constitute
acceptance of the offer from the insurer.

Q2) Which distinct legal characteristic of insurance contracts states that only the
insurer's promise to perform is legally enforceable?
A) contracts of adhesion
B) unilateral contracts
C) aleatory contracts
D) personal contracts

To view all questions and flashcards with answers, click on the resource link above.

Page 11
 Chapter 10: Analysis of Insurance Contracts
Available Study Resources on Quizplus for this Chatper
49 Verified Questions
49 Flashcards
Source URL: https://quizplus.com/quiz/3712

Sample Questions
Q1) The purpose of a coordination-of-benefits provision in group health insurance plans
is to
A) determine which plan pays first if more than one plan covers a loss.
B) determine which health care provider an insured may use for his or her care.
C) determine if the calendar-year deductible has been satisfied by the insured.
D) determine if the employee is eligible for coverage under the group health plan.

Q2) Mark reviewed his homeowners policy. He learned that his personal property was
insured on an actual cash value basis. He would like replacement cost coverage on his
personal property. He contacted his agent who said, "I'll simply add an amendment to
your contract that changes the basis of recovery to replacement cost." The written
provision the agent was referring to is called a(n)
A) endorsement.
B) coinsurance clause.
C) binder.
D) deductible.

To view all questions and flashcards with answers, click on the resource link above.

Page 12
 Chapter 11: Life Insurance
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/3713

Sample Questions
Q1) The net amount at risk for an ordinary life insurance policy is the difference between
the
A) present value of future benefits and the present value of future premiums.
B) face amount of the policy and the total premiums that have been paid.
C) face amount of the policy and the legal reserve.
D) annual premium and the annual policyholder dividend.

Q2) Which of the following statements about policies sold to preferred risks is (are) true?
I.Preferred risks are people whose mortality experience (deaths per thousand at a given
age) is expected to be more favorable than average.
II.Insurers require preferred risks to purchase at least a minimum amount of life
insurance, such as $250,000.
A) I only
B) II only
C) both I and II
D) neither I nor II

To view all questions and flashcards with answers, click on the resource link above.

Page 13
 Chapter 12: Life Insurance Contractual Provisions
Available Study Resources on Quizplus for this Chatper
60 Verified Questions
60 Flashcards
Source URL: https://quizplus.com/quiz/3714

Sample Questions
Q1) Which of the following statements about life insurance policy loans is (are) true?
I.Interest is not required on a life insurance policy loan, as the policyholder is borrowing
his or her own money.
II.If there is an outstanding loan when the insured dies, payment to the beneficiary is
reduced by the amount of the loan.
A) I only
B) II only
C) both I and II
D) neither I nor II

Q2) All of the following are requirements that must be satisfied before premiums are
waived under a waiver-of-premium provision EXCEPT
A) The insured must furnish proof of disability to the insurer.
B) The insured must be disabled before some specified age, such as age 60 or 65.
C) The insured must satisfy the definition of disability.
D) The insured must satisfy a 2-year waiting period.

To view all questions and flashcards with answers, click on the resource link above.

Page 14
 Chapter 13: Buying Life Insurance
Available Study Resources on Quizplus for this Chatper
48 Verified Questions
48 Flashcards
Source URL: https://quizplus.com/quiz/3715

Sample Questions
Q1) Each of the following helps to reduce federal estate taxes EXCEPT
A) the marital deduction.
B) the applicable unified tax credit amount.
C) life insurance policies in which the deceased had an incidents of ownership at the
time of death.
D) expenses such as the cost of the funeral, estate settlement costs, and probate costs.

Q2) Carl and Carol Williams, a married couple, are doing some estate planning. Upon his
death, Carl plans to leave $1,000,000 in property to his wife. This amount will reduce the
value of Carl's gross estate and will be taxed later when Carol dies. This reduction of the
gross estate is called the
A) unified tax credit.
B) taxable estate.
C) capital gains deduction.
D) marital deduction.

To view all questions and flashcards with answers, click on the resource link above.

Page 15
 Chapter 14: Annuities and Individual Retirement Accounts
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/3716

Sample Questions
Q1) James is concerned that if he purchases a fixed immediate annuity his funds will be
tied-up and not accessible if an emergency arises. His insurance agent said that a rider
could be attached to his annuity to address this concern. The rider is a(n)
A) partial cash withdrawal rider.
B) return of premium rider.
C) guaranteed purchase option rider.
D) waiver-of-premium rider.

Q2) Life annuity payments are made up of all of the following EXCEPT
A) return of premiums.
B) interest earnings.
C) unliquidated principal of annuitants who live too long.
D) unliquidated principal of annuitants who die early.

Q3) Under an equity-indexed annuity, what name is given to the percentage increase in
the stock index that is credited to the contract?
A) the expense rate
B) the exclusion ratio
C) the indexing method
D) the participation rate

To view all questions and flashcards with answers, click on the resource link above.

Page 16
 Chapter 15: Health-Care Reform; Individual Health

Insurance Coverages
Available Study Resources on Quizplus for this Chatper
47 Verified Questions
47 Flashcards
Source URL: https://quizplus.com/quiz/3717

Sample Questions
Q1) Beth's disability income insurance policy provides benefits for accidental death,
dismemberment, and loss of sight. The maximum amount payable under this benefit is
known as the
A) face value.
B) cash value.
C) principal sum.
D) monthly benefit.

Q2) Which of the following statements about high deductible health insurance plans is
(are) true?
I.Coverage under a high deductible health plan is necessary to establish a qualified
health savings account (HSA).
II.High deductible health plans provide a maximum limit on annual out-of-pocket
expenses.
A) I only
B) II only
C) both I and II
D) neither I nor II

To view all questions and flashcards with answers, click on the resource link above.

Page 17
 Chapter 16: Employee Benefits: Group Life and Health

Insurance
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/3718

Sample Questions
Q1) Under many cafeteria plans, employees make premium contributions with pre-tax
dollars and a salary reduction that are used to purchase group health insurance or
dental insurance. This type of cafeteria plan is called a
A) health reimbursement arrangement plan.
B) premium conversion plan.
C) full-choice plan.
D) flexible spending account plan.

Q2) Med Profs is a group of 18 doctors. These doctors work out of their own offices and
treat patients on a fee-for-service basis. In addition, Med Profs doctors also agree to
treat HMO members at reduced fees. The type of HMO that uses organizations like Med
Profs is called a(n)
A) group model plan.
B) closed panel plan.
C) individual practice association plan.
D) network model plan.

To view all questions and flashcards with answers, click on the resource link above.

Page 18
 Chapter 17: Employee Benefits: Retirement Plans
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/3719

Sample Questions
Q1) All the following statements concerning a Roth 401(k) plan are true EXCEPT
A) After-tax dollars are used to fund the plan.
B) Investment earnings accumulate on a tax-free basis.
C) Employees at all income levels may contribute to the plan, but annual contributions
are limited.
D) Qualified distributions at retirement are fully taxable.

Q2) Which of the following statements about retirement benefits under pension plans is
true?
A) Under a flat percentage of annual earnings defined benefit formula, each employee
receives the same dollar benefit.
B) A benefit using final pay is usually based on an employee's earnings during the last
month of plan participation.
C) A unit-benefit formula considers both earnings and years of service.
D) Past service benefits are the result of bonuses and overtime pay during the period an
employee participated in the plan.

To view all questions and flashcards with answers, click on the resource link above.

Page 19
 Chapter 18: Social Insurance
Available Study Resources on Quizplus for this Chatper
59 Verified Questions
59 Flashcards
Source URL: https://quizplus.com/quiz/3720

Sample Questions
Q1) One insured status under Social Security requires you to have earned at least six
credits during the last 13 calendar quarters ending with the quarter of death, disability, or
entitlement to retirement benefits. This insured status is
A) disability insured.
B) temporarily insured.
C) fully insured.
D) currently insured.

Q2) Which of the following statements about taxation of Social Security retirement
benefits under federal law is (are) true?
I.Social Security retirement benefits are never considered taxable income.
II.Up to 85 percent of Social Security retirement benefits may be considered taxable
income, depending on the amount of other income received by the beneficiary.
A) I only
B) II only
C) both I and II
D) neither I nor II

To view all questions and flashcards with answers, click on the resource link above.

Page 20
 Chapter 19: The Liability Risk
Available Study Resources on Quizplus for this Chatper
56 Verified Questions
56 Flashcards
Source URL: https://quizplus.com/quiz/3721

Sample Questions
Q1) Heather sued Robert for injuries suffered in an automobile accident. Based on the
facts presented, the jury concluded that Heather was 40 percent at fault in the accident
and Robert was 60 percent at fault. Under the common law doctrine of contributory
negligence, the jury should award Heather
A) nothing.
B) 40 percent of her actual damages.
C) 60 percent of her actual damages.
D) 100 percent of her actual damages.

Q2) All of the following are proposed solutions to the medical malpractice problem
EXCEPT
A) shortening the statute of limitations for filing lawsuits.
B) eliminating arbitration panels to resolve disputes.
C) placing limitations on contingent fees charged by attorneys.
D) placing limitations on damage awards.

Q3) Compensatory damages include

A) general damages and special damages.
B) special damages and punitive damages.
C) punitive damages and general damages.
D) general damages, special damages, and punitive damages.

To view all questions and flashcards with answers, click on the resource link above.

Page 21
 Chapter 20: Auto Insurance
Available Study Resources on Quizplus for this Chatper
55 Verified Questions
55 Flashcards
Source URL: https://quizplus.com/quiz/3722

Sample Questions
Q1) All of the following losses are excluded under Part D (coverage for damage to your
auto) of an unendorsed PAP EXCEPT
A) vandals damaged a portable cell phone kept in the car.
B) theft of a compact disc player which was permanently installed in the auto.
C) damage caused to a car's engine because the named insured never changed the oil.
D) destruction of a radar detector which overheated and caught on fire.

Q2) Which of the following situations would be covered by the liability section of an
unendorsed PAP if the insured is legally liable?
A) The insured injures a pedestrian while operating a friend's new motorcycle.
B) The insured backs into and damages the garage door of his rented house.
C) The insured intentionally runs into another motorist's car after the driver cut in front of
him.
D) The insured damages a parked car while driving a dump truck for his employer.

Q3) A vehicle is considered a constructive total loss when

A) it cannot be repaired.
B) the repair cost exceeds the actual cash value.
C) it can be repaired, but the insured prefers a cash settlement.
D) it can be repaired, but the insurer prefers a cash settlement.

To view all questions and flashcards with answers, click on the resource link above.

Page 22
 Chapter 21: Auto Insurance (continued)
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/3723

Sample Questions
Q1) All of the following are arguments for no-fault automobile insurance laws EXCEPT
A) No-fault is unnecessary as it's easy to determine which driver was negligent when a
multiple-vehicle accident occurs.
B) A large portion of each premium dollar is used for purposes other than compensating
accident victims for their losses.
C) There are delays in compensating accident victims under the tort system.
D) Seriously injured accident victims tend to be overcompensated, while those with
small economic losses are inadequately indemnified.

Q2) In Maryland, drivers who are unable to obtain auto insurance in the voluntary market
are insured through a(n)
A) state fund.
B) reinsurance facility.
C) joint underwriting association
D) automobile insurance plan.

To view all questions and flashcards with answers, click on the resource link above.

Page 23
 Chapter 22: Homeowners Insurance, Section I
Available Study Resources on Quizplus for this Chatper
58 Verified Questions
58 Flashcards
Source URL: https://quizplus.com/quiz/3724

Sample Questions
Q1) Ellen believes the value of the loss to her home is $30,000. The insurer has offered
$18,000 to settle the loss. If Ellen and the insurer cannot agree on the value of the loss,
which homeowners policy provision specifies how this dispute will be settled?
A) insurer's option
B) appraisal clause
C) loss payment clause
D) mortgage clause

Q2) Which of the following statements about the personal property coverage (Coverage
C) of the Homeowners 3 policy is (are) true?
I. There are special limits of liability that apply to certain types of personal property.
II. The full amount of coverage applies only if the property is permanently located at any
residence of the insured.
A) I only
B) II only
C) both I and II
D) neither I nor II

To view all questions and flashcards with answers, click on the resource link above.

Page 24
 Chapter 23: Homeowners Insurance, Section II
Available Study Resources on Quizplus for this Chatper
48 Verified Questions
48 Flashcards
Source URL: https://quizplus.com/quiz/3725

Sample Questions
Q1) Which of the following statements about the additional coverage for damage to
property of others in Section II of the homeowners policy is true?
A) The maximum amount of coverage is $25,000 per occurrence.
B) Payments are made on the basis of the replacement cost of the damaged property.
C) There is coverage for property damage arising out of a business engaged in on a
full-time basis by an insured.
D) There is coverage for intentional property damage by any insured who is a teenager.

Q2) All of the following situations are excluded from coverage under Section II of the
homeowners policy EXCEPT
A) the rental of a spare bedroom which is used by the tenant as an office.
B) the use of a rented airplane to take a vacation.
C) the ownership of a ten-unit apartment house as an investment.
D) the performance of professional services by the insured at the residence premises.

To view all questions and flashcards with answers, click on the resource link above.

Page 25
 Chapter 24: Other Property and Liability Insurance

Coverages
Available Study Resources on Quizplus for this Chatper
47 Verified Questions
47 Flashcards
Source URL: https://quizplus.com/quiz/3726

Sample Questions
Q1) William would like to insure his home. He does not want theft or personal liability
coverage; however, he would like "open perils" (all-risks) coverage on the dwelling.
William should purchase a
A) Homeowners 3 Policy.
B) Dwelling Property 1 Form.
C) Dwelling Property 2 Form.
D) Dwelling Property 3 Form.

Q2) Which of the following statements about the eligibility requirements for insuring
mobile homes by endorsing a homeowners policy is (are) true?
I.The mobile home must be designed for year-round living.
II.The mobile home must be located in a fenced area with security guards.
A) I only
B) II only
C) both I and II
D) neither I nor II

To view all questions and flashcards with answers, click on the resource link above.

Page 26
 Chapter 25: Commercial Property Insurance
Available Study Resources on Quizplus for this Chatper
47 Verified Questions
47 Flashcards
Source URL: https://quizplus.com/quiz/3727

Sample Questions
Q1) All of the following statements about inland marine forms are true EXCEPT
A) A mail coverage form covers securities in transit by first-class mail, registered or
certified mail, or express mail.
B) A commercial articles coverage form is used to insure photographic equipment and
musical instruments.
C) A jewelers block coverage form is used by individuals to insure jewelry limited in
coverage by the homeowners form.
D) The signs coverage form covers neon, mechanical, and electrical signs.

Q2) The exterior walls, the roof, and the plumbing, heating and air conditioning systems
of a residential condominium can be insured through the purchase of which of the
following forms?
I.Condominium association coverage form
II.Condominium commercial unit-owners coverage form
A) I only
B) II only
C) both I and II
D) neither I nor II

To view all questions and flashcards with answers, click on the resource link above.

Page 27
 Chapter 26: Commercial Liability Insurance
Available Study Resources on Quizplus for this Chatper
46 Verified Questions
46 Flashcards
Source URL: https://quizplus.com/quiz/3728

Sample Questions
Q1) Jenkins Company purchased a commercial umbrella policy with a $10 million limit
and a $100,000 self-insured retention. The insurer required Jenkins Company to carry a
$1 million per-occurrence limit on its general liability policy and a $1 million
per-occurrence limit on its business auto policy. Jenkins purchased these required limits.
A Jenkins driver was negligent while operating a company vehicle and killed another
motorist. The court ruled that Jenkins must pay $5 million. How much of this amount will
be paid by the umbrella policy?
A) $1.0 million
B) $3.9 million
C) $4.0 million
D) $5.0 million

Q2) One type of liability insurance covers damages arising from the failure of a data
holder to protect private information from being accessed by an unauthorized party.
This type of liability coverage is called
A) errors and omissions insurance.
B) cyber liability insurance.
C) terrorism insurance.
D) employment-related practices liability insurance.

To view all questions and flashcards with answers, click on the resource link above.

Page 28
 Chapter 27: Crime Insurance and Surety Bonds
Available Study Resources on Quizplus for this Chatper
42 Verified Questions
42 Flashcards
Source URL: https://quizplus.com/quiz/3729

Sample Questions
Q1) Which of the following statements is (are) true with regard to the ISO commercial
crime coverage forms?
I.The discovery version only covers losses which occur during the policy period.
II.The loss-sustained version covers losses which occur during the policy period and the
loss is discovered during the policy period or within one year after the policy expires.
A) I only
B) II only
C) both I and II
D) neither I nor II

Q2) XYZ Insurance Company markets a wide range of coverages. One type of coverage
provides monetary compensation if a bonded party fails to perform certain acts. This
coverage is called
A) property insurance.
B) liability insurance.
C) a fidelity bond.
D) a surety bond.

To view all questions and flashcards with answers, click on the resource link above.

Page 29