ASIS Exam PSP Topic 3 Question 99 Discussion

Actual exam question for ASIS's PSP exam

Question #: 99
Topic #: 3

Insurance carriers provide coverage on the basis that the estimated value of loss is always greater than the total of the premiums paid.

ATrue

BFalse

Show Suggested Answer

Suggested Answer: B

by Kanisha at Sep 18, 2024, 05:21 PM

Limited Time Offer

25%

Off

Get Premium PSP Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Yuette

1 months ago

This question is as clear as mud. Maybe the insurers just have a really good crystal ball to predict the future.

upvoted 0 times

...

Luann

1 months ago

Insurance is all about spreading the risk, not just making a quick buck. I think the answer has to be B) False.

upvoted 0 times

Truman

19 days ago

That makes sense. It wouldn't be fair if insurance companies always made a profit without providing coverage. B) False seems like the right choice.

upvoted 0 times

...

Ashlee

23 days ago

I think you're right. Insurance companies wouldn't stay in business if they always paid out less than they collected in premiums. B) False is the correct answer.

upvoted 0 times

...

Emogene

30 days ago

I agree, insurance is about spreading the risk. So, the answer is definitely B) False.

upvoted 0 times

...

Samira

1 months ago

But insurance carriers need to make a profit, so it makes sense that the estimated value of loss is greater than premiums paid.

upvoted 0 times

...

Gaston

1 months ago

I disagree, I believe the answer is False.

upvoted 0 times

...

Samira

1 months ago

I think the answer is True.

upvoted 0 times

...

Dona

2 months ago

This question is a piece of cake! Of course, the insurers are in it for the money, not to lose it.

upvoted 0 times

...

Stanton

2 months ago

Hmm, I'm not so sure about that. Insurers do make a profit, so the premiums can't always be less than the estimated loss, right?

upvoted 0 times

Alishia

9 days ago

But wouldn't that mean the premiums are always less than the estimated loss? I'm not sure.

upvoted 0 times

...

Shaunna

19 days ago

I think it's true because insurance companies need to make a profit to stay in business.

upvoted 0 times

...

Marya

24 days ago

B) False

upvoted 0 times

...

Stefany

28 days ago

A) True

upvoted 0 times

...

Shaun

2 months ago

I think the estimated value of loss being greater than the total premiums is a key principle of insurance, so I'll go with A) True.

upvoted 0 times

Lyla

20 days ago

Yes, it makes sense that the estimated value of loss would be higher than the premiums paid.

upvoted 0 times

...

Chi

29 days ago

I also think it's true, insurance companies need to make sure they can cover the cost of claims.

upvoted 0 times

...

Adrianna

1 months ago

I agree, insurance is all about protecting against potential losses.

upvoted 0 times

...

Suzan

2 months ago

The question seems straightforward, but I'm not sure if the answer is as simple as it appears.

upvoted 0 times

Viola

27 days ago

I'm not sure, but it does make sense that they would need to cover the cost of potential losses.

upvoted 0 times

...

Jannette

1 months ago

B) False

upvoted 0 times

...

Sabra

1 months ago

I think it's true because insurance companies need to make a profit.

upvoted 0 times

...

Tammy

1 months ago

B) False

upvoted 0 times

...

Sanda

2 months ago

A) True

upvoted 0 times

...

Mammie

2 months ago

I think it's true because insurance companies need to make a profit.

upvoted 0 times

...

Marisha

2 months ago

A) True

upvoted 0 times

...