Final Chapter 1 Exam
Which of the following financial products creates an instant estate, no matter when the date of death?
Life insurance
Which of the following financial products creates an instant estate, no matter when the date of death? Mutual Funds Life insurance Certificate of deposit Deferred annuity
Life insurance
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 agent's license and insurance company's certificate of authority buyer's guide and policy summary state guaranty association
Agent's contract and the insurance company's appointment
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 group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a treaty insurer risk retention group risk assumption group captive insurer
Risk Retention Group
Dividends from a stock insurance company are normally sent to beneficiaries shareholders policyowners insureds
Shareholders
Which of the following types of insurers limits the exposures it writes to those of its owners? Restricted insurer Limited insurer Confined insurer Captive insurer
Captive Insurer
A reciprocal insurer typically has an administrator who manages the premiums collected from the group's members. This administrator is called a(n) reciprocal commissioner attorney general attorney-in-fact reciprocal director
Attorney in Fact
Which of the following is a syndicate established by a group of insurers to share underwriting duties? Reinsurer Lloyd's organization NAIC Multi-line insurers
Lloyds organization
Dividends from a mutual insurance company are paid to whom? Policyholders Beneficiaries Preferred stockholders Stockholders
Policy holders
Which of the following describes a participating insurance policy? Policyowners are entitled to receive dividends Policyowners pay assessments for company losses Stock companies allow their policyowners to share in any company earnings Policyowners are not entitled to vote for members of the board of directors
Policyowners are entitled to receive dividends
Which of the following outlines the authority given to the Producer on behalf of the insurer? Rebating arrangement Commingling contract Controlled business clause Producer contract
Producer Contract
What is considered the accounting measurement of an insurance company's future obligations to its policyowners? credits reserves surplus account retention fund
Reserves
Who regulates an insurer's claim settlement practices? National Association of Claim Adjusters State attorney general National Association of Insurance Commissioners State insurance departments
State Insurance Departments
Which group is the Do Not Call Registry designed to protect against? Telemarketers Charities Political organizations Relatives
Telemarketers
What type of reinsurance contract between two insurers involves an automatic sharing of the risks assumed? Arbitrage reinsurance Facultative reinsurance Excess reinsurance Treaty reinsurance
Treaty Reinsurance
An agent's authority to bind an insurer to an insurance contract may be granted in the
agents contract and insurance company's appointment