Chapter Exam - Basic Principles

Which of the following is a syndicate established by a group of insurers to share underwriting duties?

Lloyd's organization

An agent's authority to bind an insurer to an insurance contract may be granted in the

agent's contract and the insurance company's appointment

Which of the following types of insurers limits the exposures it writes to those if it's owners?

captive insurer

Which of the following financial products creates an instant estate, no matter when the date of death?

life insurance

Dividends from a mutual insurance company are paid to whom?

policyholders

Which of the following accurately describes a participating insurance policy?

policyowners may be entitled to receive dividends

What is the accounting measurement of an insurance company's future obligations to it policyowners?

reserves

A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a

risk retention group

Dividends from a stock insurance company are normally sent to

shareholders

Which reinsurance contract between two insurers involves an automatic sharing of the risks assumed?

treaty reinsurance