Basic principles of life and health insurance

___ insurer assumes risk from another insurance company.

Reinsurance

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

Treaty reinsurance

Insurance is not characterized as which of the following?

As the number of insureds increase the number of losses decrease

___ 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

___ 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 the following accurately describes a participating insurance policy?

Policyowners may be entitled to receive dividends

Which of the following is not an objective of the National Association of Insurance Commissioners?

Regulate state insurance commissioners

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

Reserves

A stock insurance company is owned by its

Shareholders

Dividends from a stock insurance company are normally sent to

Shareholders

An agents authority to bind an insurer to an insurance contract may be granted in the

Agents contract and the insurance company's appointment

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

Attorney-in-fact

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

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

Lloyd's organization

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

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

Who regulates an insurers claim settlement practices?

State insurance departments