While driving, Ben was struck by another driver, Roxanne. Ben then filed a claim with Roxanne's insurer.

In

essence, what was Ben doing when he filed this

claim?

Alerting Roxanne's insurer of his intent to take the

case to court

Submitting a formal request to settle the damages

with Roxanne's insurer

Ordering Roxanne's insurer to pay for his damages

within 15 days

Admitting he was actually "at fault"

2. Mark incurred $8,000 damage to his car in an acciSubmitting a formal request to settle the damages

with Roxanne's insurer

the principle of indent. He received $8,000 from his insurance company demnity

and

$4,000 from the other driver. By receiving a profit from

the loss, Mark could be in violation of:

the principle of financial status.

the principle of financial restoration.

the principle of profit and loss.

the principle of indemnity.

3. What is a reserve, in insurance terms?

The amount of revenue that the insurer sets aside to

pay employee salaries

A group of policyholders who pay into the same pool

of premiums

A pool of collected premiums that the insurer sets

aside to pay claims

A set of rules governing how the insurance industry

should work

4. The purpose of the principle of indemnity is:

to prevent an insured from making a profit on a loss.

to transfer the risk of financial loss from one party to

another.

to transfer the right to collect a debt from one party

A pool of collected

premiums that the

insurer sets aside

to pay claims

to prevent an insured from making