WISCONSIN LIFE INSURANCE EXAM PREP
STUDY GUIDE PRACTICE QUESTIONS AND
ACCURATE SOLUTIONS
●● Mutual Insurer.
Answer: - An insurer that is owned by its policyholders
- If company is profitable, excess premiums are returned as non-taxable
dividend
-Issues participating (Par) policies
●● Fraternal Benefit Societies.
Answer: -Life or health insurance companies formed to provide
insurance for members of an affiliated lodge, religious organization, or
fraternal organization with a representative form of government.
- Members are certificate holders
- Members can acquire additional charges if premiums are not sufficient
enough to meet claims
●● Reciprocal Insurers.
Answer: -Unincorporated groups of people that provide insurance for
one another through individual indemnity agreements
- Ran by an attorney-in-fact
, - Members are assessed the amount they have to pay if loss occurs to
any member of the group
●● Risk Retention Group.
Answer: -A liability insurance company owned by its members, which
are exposed to similar liability risks by virtue of being in the same
business or industry. e.g. car dealers or butchers
●● Lloyd's Associations.
Answer: -Insurance provided by individual underwriters not companies
- Commonly insures things such as hole-in-one contests, celebrity body
parts, etc.
●● Self-insurance.
Answer: -A special form of planned retention by which part or all of a
given loss exposure is retained by the firm
●● Federal Insurer.
Answer: -Examples: Social security benefits, military life insurance,
federal employee benefits and retirement benefits.
-Also funds programs to cover catastrophic risk such as; war risks,
flooding, and crop loss
●● State level government insurance.
STUDY GUIDE PRACTICE QUESTIONS AND
ACCURATE SOLUTIONS
●● Mutual Insurer.
Answer: - An insurer that is owned by its policyholders
- If company is profitable, excess premiums are returned as non-taxable
dividend
-Issues participating (Par) policies
●● Fraternal Benefit Societies.
Answer: -Life or health insurance companies formed to provide
insurance for members of an affiliated lodge, religious organization, or
fraternal organization with a representative form of government.
- Members are certificate holders
- Members can acquire additional charges if premiums are not sufficient
enough to meet claims
●● Reciprocal Insurers.
Answer: -Unincorporated groups of people that provide insurance for
one another through individual indemnity agreements
- Ran by an attorney-in-fact
, - Members are assessed the amount they have to pay if loss occurs to
any member of the group
●● Risk Retention Group.
Answer: -A liability insurance company owned by its members, which
are exposed to similar liability risks by virtue of being in the same
business or industry. e.g. car dealers or butchers
●● Lloyd's Associations.
Answer: -Insurance provided by individual underwriters not companies
- Commonly insures things such as hole-in-one contests, celebrity body
parts, etc.
●● Self-insurance.
Answer: -A special form of planned retention by which part or all of a
given loss exposure is retained by the firm
●● Federal Insurer.
Answer: -Examples: Social security benefits, military life insurance,
federal employee benefits and retirement benefits.
-Also funds programs to cover catastrophic risk such as; war risks,
flooding, and crop loss
●● State level government insurance.
