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CPCU 520 Questions And Answers With Verified Solutions 100% Correct!!!
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CPCU 520 Questions And Answers With Verified Solutions 100% Correct!!!
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CPCU 520 Questions And Answers WithVerified Solutions 100% Correct!!!
Cost Leadership - ANSWER✔✔ A business-level strategy through which a
company seeks cost efficiencies in all operational areas.
Underwriting - ANSWER✔✔ The process of selecting insureds, pricing coverage,
Determining insurance policy terms and conditions, and then monitoring the
underwriting decisions made.
Loss ratio - ANSWER✔✔ A ratio that measures losses and loss adjustment
expenses against earned premiums and that reflects the percentage of premiums
being consumed by losses.
Premium Audit - ANSWER✔✔ Methodical examination of a policyholder's
operations, records, and books of account to determine the actual exposure units
and premium for insurance coverages already provided.
National Association of Insurance Commissioners (NAIC) - ANSWER✔✔ An
association of insurance commissioners from the 50 U.S. states, the District of
Columbia, and the five U.S. territories and possessions, whose purpose is to
coordinate insurance regulation activities among the various state insurance
departments.
Model Law - ANSWER✔✔ A document drafted by the NAIC, in a style similar to a
state statute, that reflects the NAIC's proposed solution to a given problem or
issue and provides a common basis to the states for drafting laws that affect the
insurance industry. Any state may choose to adopt the model bill or adopt it with
modifications.
, Model Regulation - ANSWER✔✔ A draft regulation that may be implemented by a
state insurance department if the model law is passed.
Insolvency - ANSWER✔✔ A situation in which an entity's current liabilities (as
opposed to its total liabilities) exceed its current assets.
Indemnify - ANSWER✔✔ To restore a party who has sustained a loss to the same
financial position that party held before the loss occurred.
Third Party Administrator (TPA) - ANSWER✔✔ An organization that provides
administrative services associated with risk financing and insurance.
Loss adjustment expense (LAE) - ANSWER✔✔ The expense that an insurer incurs
to investigate, defend, and settle claims according to the terms specified in the
insurance policy.
Big Data - ANSWER✔✔ Sets of data that are too large to be gathered and
analyzed by traditional methods.
Internet of Things (IoT) - ANSWER✔✔ A network of objects that transmit data to
each other and to central hubs through the internet.
Telematics - ANSWER✔✔ The use of technological devices to transmit data via
wireless communication and GPS tracking.
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