Chapter 1- basic principles of insurance
A(n) insurer assumes risk from another insurance company
Reinsurance
Which of the following financial products creates an instant estate, no matter when the date of the death
Life insurance
Which of the following is syndicate established by a group of insurers to share underwriting duties?
Lloyd's organization
Dividends from a mutual insurance company are paid to whom?
Policyholders
Which of the following accurately describes a participating insurance policy?
Policyownwrs may be enttled to recieve dividends
Which of the following outlines the authority given to the producer on behalf of the insurer?
Producer contract
Which of the following is an unincorporated association of view members provide coverage for one another?
Reciprocal
Which of the following is NOT an objective of the national association of insurance commissioners?
Regulate state insurance commissioners
What is the accounting measure of an insurance company's future obligations to its policy owners?
Reserves
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
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
A STOCK insurance company is owned by its
shareholders
Dividends from a stock insurance company are normally sent to
shareholders
Insurance is NOT characterized as which of the following?
As the # of insured INCREASES the # of losses DECREASE
A reciprocal insurer typically has administrator who managers the premiums collected from the groups members. This administrator is called
Attorney in fact
A(n) agent is an insurance agent who represents only ONE insurance company
Captive
Which of the following types of insurers limits the exposure it writes of its owners?
Captive insurer
When a ceding insurer transfers a portion of its risk to an assuming insurer on a case by case basis, this process is referred to as
Facultative reinsurance
A(n) agent may represent several insurers
Independent
Who regulations and insurer's claim settlement practices?
State insurance departments
Which reinsurance contract between two insurers involves an automatic sharing of the risks assumed?
Treaty reinsurance
