Wisconsin Life Insurance Exam Prep 2024/2025
already passed
1). Stock insurer
Ans: - Owned by stockholders/shareholders
- Pays taxable dividends to shareholders if a profit is
made
-Issues nonparticipating policies (non-PAR)
2). Mutual insurer
Ans: - An insurer that is owned by its policyholders
- If company is profitable, excess premiums are returned as non-taxable dividend
-Issues participating (Par) policies
3). Fraternal benefit societies
Ans: -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
4). Reciprocal insurers
Ans: -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
5). Risk retention group
Ans: -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
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, 6). Lloyd's associations
Ans: -Insurance provided by individual underwriters not companies
- Commonly insures things such as hole-in-one contests, celebrity body parts, etc.
7). Self-insurance
Ans: -A special form of planned retention by which part or all of a given loss exposure
is retained by the firm
8). Federal insurer
Ans: -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
9). State level government insurance
Ans: Examples: Workers Compensation, disability insurance, & medical insurance for
the needy
10). Domestic insurer
Ans: An insurance company that conducts business in the state of incorporation.
11). Foriegn insurer
Ans: Any state other than the state where incorporated
12). Alien insurer
Ans: An insurance company that is incorporated outside the United States.
13). Certificate of authority
Ans: state license for an insurance company
14). Surplus lines insurer
Ans: -Specific agreement for producer to write business by a nonadmitted insurer when
coverage is otherwise unavailable in that jurisdiction. Must be approved by state
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already passed
1). Stock insurer
Ans: - Owned by stockholders/shareholders
- Pays taxable dividends to shareholders if a profit is
made
-Issues nonparticipating policies (non-PAR)
2). Mutual insurer
Ans: - An insurer that is owned by its policyholders
- If company is profitable, excess premiums are returned as non-taxable dividend
-Issues participating (Par) policies
3). Fraternal benefit societies
Ans: -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
4). Reciprocal insurers
Ans: -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
5). Risk retention group
Ans: -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
PaperStoc.com Page 1 of 5
, 6). Lloyd's associations
Ans: -Insurance provided by individual underwriters not companies
- Commonly insures things such as hole-in-one contests, celebrity body parts, etc.
7). Self-insurance
Ans: -A special form of planned retention by which part or all of a given loss exposure
is retained by the firm
8). Federal insurer
Ans: -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
9). State level government insurance
Ans: Examples: Workers Compensation, disability insurance, & medical insurance for
the needy
10). Domestic insurer
Ans: An insurance company that conducts business in the state of incorporation.
11). Foriegn insurer
Ans: Any state other than the state where incorporated
12). Alien insurer
Ans: An insurance company that is incorporated outside the United States.
13). Certificate of authority
Ans: state license for an insurance company
14). Surplus lines insurer
Ans: -Specific agreement for producer to write business by a nonadmitted insurer when
coverage is otherwise unavailable in that jurisdiction. Must be approved by state
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