Chapter Two: Other Insurers
Which of the following best describes an insurer that is a charitable organization providing insurance only to its members?
Fraternal benefit society Fraternals are religious, ethnic or charitable organizations that provide insurance to their members.
Fraternal benefit societies are described by all of the following, EXCEPT:
They include stock and mutual companies. Fraternals are religious, ethnic or charitable organizations that provide insurance to their members.
DEF insurer is nonadmitted. All of the following are possible explanations for why DEF insurer cannot sell insurance in a state EXCEPT:
DEF sells excess and surplus lines insurance. Excess and surplus lines insurers are unauthorized, or nonadmitted, but are still permitted to sell excess and surplus lines insurance.
A reciprocal exchange is characterized by which of the following?
It consists of an unincorporated group of individuals. Reciprocal exchanges are very similar to mutual insurers, except they are unincorporated and each insurer acts as both the insurer and the insured.
A market where individuals and groups of people gather to exchange insurance is a:
Lloyd's association A Lloyd's association is best described as an insurance marketplace. Lloyd's of London is the most prominent Lloyd's association.
Which of the following is best described as an insurance marketplace where people gather to exchange insurance?
Lloyd's association A Lloyd's association is best described as an insurance marketplace. Lloyd's of London is the most prominent Lloyd's association.
All of the following are OASDI benefits, EXCEPT:
Medicaid OASDI stands for Old Age, Survivors and Disability Insurance. It is government insurance that is commonly referred to as Social Security. Medicaid is a separate dual state-federal program that provides welfare assistance.
All of the following are OASDI benefits EXCEPT:
Medicaid OASDI stands for Old Age, Survivors and Disability insurance. It is government insurance that is commonly referred to as Social Security. Medicaid is a separate dual state-federal program that provides welfare assistance.
Which of the following is a group of companies that collectively assumes and spreads its own risk?
Risk retention group Risk retention groups are companies which jointly self-insure their risks as a group in order to spread their own risk.
Which of the following is another term for reciprocal exchange?
Insurance exchange Reciprocal exchanges, also referred to as interinsurance exchanges or simply reciprocals, are unincorporated groups of individuals. Each individual member, called a subscriber, provides insurance for other members through indemnity contracts. Each subscriber acts as both the insurer and the insured.