Review for the First Exam Describe Exam Review Major Topics Provide Study Tips and Exam Strategies Sample Exam

First Exam When and Where? Tuesday, February 22, :30-9:50 am 141 Commerce West

First Exam 20 Questions in Total Exam is Worth 30 Points. Some True/False or Multiple Choice Others Short Answer or Calculations Exam is Open Book, Open Note Bring Calculator (that you are familiar with using) and Auto and Homeowners Policies

Sample Questions 1. Management of mutual insurers are immune to a hostile takeover by a new owner. T F 2. The pure premium is the total of expected claims and expenses on an insurance policy. T F

Sample Questions 3. Preferred Risk Insurance Company wrote auto insurance for teetotalers. What marketing strategy for competitive positioning is this company following? A. Market leader B. Market challenger C. Market follower D. Market nicher E. Market pricer

Sample Questions 4.Calculate the gross premium using the pure premium method based on the following information: Loss frequency10% Loss severity$900 Fixed expenses$100 Variable expenses50%

Topics the Exam Covers Overview of Insurance Operations Marketing and Distribution Systems Underwriting – Including Guest Speaker Claims Adjusting – Including Guest Speakers Ratemaking Loss Reserving Personal Lines Policies

Study Tips Review Homework Assignments 1-2 If you have not been doing well on the assignments, then you probably need to read the texts (on reserve in Undergrad Library) Review Class Assignments 1-5 Do not memorize material, but know where it is located, if you need to look it up Have organized notes

Exam Strategies Answer all the questions you can answer without using your book and detailed notes first. Then, if you have time, use your book and detailed notes to help you answer the remaining questions. Do not get bogged down on a particular question. Skip it and come back, if you have time left.