Chapter 1: Basic Principles

reserves

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

Treaty reinsurance

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

Telemarketers

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

Policyowners are entitled to receive dividends

Which of the following describes a participating insurance policy?

Life insurance

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

Lloyd's organization

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

Producer contract

Which of the following outlines the authority given to the Producer on behalf of the insurer?

Captive insurer

Which of the following types of insurers limits the exposures it writes to those of its owners?

State insurance departments

Who regulates an insurer's claim settlement practices?

attorney-in-fact

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

risk retention group

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

agent's contract and the insurance company's appointment

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

Policyholders

Dividends from a mutual insurance company are paid to whom?

shareholders

Dividends from a stock insurance company are normally sent to