General Insurance
What do independent rating services report about an insurer?
Answer and explanation
Answer: C. Independent rating services assess an insurer's financial condition and its capacity to pay claims. Form approval and producer licensing are regulatory matters, and rate competitiveness is a market question rather than a rating.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, financial status and rating services
More general insurance questions
- A firm raises the deductible on its cover and keeps the first layer of loss itself. Which method of handling risk is that?
- A homeowner stores petrol in an attached garage. In risk terms, what is the petrol?
- A life insurance policyowner may stop paying premiums at any time without legal penalty, but the insurer is legally bound to pay the death benefit if the insured dies while the policy is in force. This situation best illustrates which legal characteristic of an insurance contract?
- A New York producer collects an application and the first premium. What does the producer owe the applicant?
- A producer collects a premium with an application and holds it for three weeks before remitting it. What duty has been breached?
- An application stipulates that coverage will not begin until the policy is delivered, accepted, and the first premium is paid. If the policy is delivered but the initial premium remains unpaid, why is the insurer not liable for a claim?
621 New York questions like this one.
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