Chapter Exam - Basic Principles
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
Which of the following types of insurers limits the exposures it writes to those if it's owners?
captive insurer
Which of the following financial products creates an instant estate, no matter when the date of death?
life insurance
Dividends from a mutual insurance company are paid to whom?
policyholders
Which of the following accurately describes a participating insurance policy?
policyowners may be entitled to receive dividends
What is the accounting measurement of an insurance company's future obligations to it 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
shareholders
Which reinsurance contract between two insurers involves an automatic sharing of the risks assumed?
treaty reinsurance