chapter 1-basic principles of life and health insurance

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

insurance is NOT characterized as which of the following?

as the # of insureds increase the # of losses decrease

a reciprocal insurer typically has an administrator who manages the premiums collected from the group's members. This administrator is called a(n):

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 exposures it writes to those 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

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

life insurance

which of following accurately describes a participating insurance policy?

policy owners may be entitled to receive dividends

dividends from a mutual insurance company are paid to whom?

policyholders

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 whose 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

a(n)_____ insurer assumes risk from another insurance company

reinsurance

What is the accounting measurement of an insurance company's future obligations to its 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:

share holders

a stock insurance company is owned by its:

shareholders

who regulates an insurer's claim settlement practices?

state insurance departments

Which group is the Do Not Call Registry designed to protect against?

telemarketers

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

treaty reinsurance