The percentage change in demand per a percentage change in advertising would be called the

What is the practical effect of an insurance contract being a contract of adhesion?

Granite Insurance Company entered into a treaty reinsurance agreement with Rock Solid Reinsurance (RSR). Granite’s retention limit is $400,000 and RSR agreed to provide reinsurance for up to $2.0 million. If Granite writes an $800,000 policy, RSR is responsible for 50 percent of the losses. If Granite insures a $1.6 million risk, RSR is responsible for 25 percent of any losses. What type of reinsurance arrangement did Granite enter into with RSR?

Which of the following statements about personal producing general agents is (are) true?I.They often have the option of recruiting and training sub-agents. II.They are independent agents who produce substantial amounts of life insurance with one insurer.

Which of the following statements about the use of risk-based capital requirements is (are) true?I.Insurers must have a certain amount of capital depending on the riskiness of their investments and insurance operations.II.Insurers may be required to take certain actions depending on how much capital they have relative to their risk-based capital requirements.

The voluntary relinquishment of a legal right is called

The leaders of a religious group decided to start a life insurance organization to insure members of the religious group. The insurer will operate as a nonprofit organization, thus receiving favorable tax treatment. The insurer formed will be a

Which of the following is a method used to help ensure the solvency of insurers?

Which of the following statements about an insurable interest in life insurance is (are) true?I.It is required of any person named as beneficiary.II.It may result from a pecuniary (financial) interest.

Which of the following statements is (are) true with respect to catastrophe bonds?I.The bonds are issued by the U.S. Government.II.The bonds have relatively high interest (coupon) rates.