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

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Yuette

3 months ago

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

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Luann

3 months ago

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

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Truman

2 months 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.

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Ashlee

2 months 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.

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Emogene

2 months ago

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

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Samira

3 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.

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Gaston

3 months ago

I disagree, I believe the answer is False.

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Samira

3 months ago

I think the answer is True.

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Dona

3 months ago

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

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Stanton

3 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?

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Alishia

2 months ago

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

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Shaunna

2 months ago

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

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Marya

2 months ago

B) False

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Stefany

2 months ago

A) True

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Shaun

3 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.

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Lyla

2 months ago

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

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Chi

2 months ago

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

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Adrianna

2 months ago

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

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Suzan

3 months ago

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

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Viola

2 months ago

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

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Jannette

3 months ago

B) False

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Sabra

3 months ago

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

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Tammy

3 months ago

B) False

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Sanda

3 months ago

A) True

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Mammie

3 months ago

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

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Marisha

3 months ago

A) True

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