Rhode Island insurance exam
the role of insurance is to - *answers * transfer the risk of financial loss from an individual or
business to an insurance company
organized and incorporated under state law owned by stockholders who get a paid share of the
company's profit through dividends. also referred to as a nonparticipating or non-par bc policy
holder do not participate in paid dividends - *answers * stock insurance company
organized and incorporated under state law. but they have no stockholders. instead, the
policyholders own the company. owners get paid a share of the companies profits through
dividends. participating or par companies bc policy owners do not participate in paid dividends -
*answers * mutual insurer companies
process of a stock company being converted into a mutual company - *answers * mutualization
process of a mutual company being converted into a stock company - *answers *
demutualization
an association formed to underwrite and issue insurance like coverage on certain items and
areas that might otherwise be uninsurable - *answers * Lloyds of London
are a specialized branch of the insurance industry that insurers other insurance company's risk.
*is an arrangement by which an insurance company transfers or sells a portion of the risk to a
reinsurance company - *answers * reinsurers
the insurance company transferring the risk - *answers * ceding company
industrial insurance sold by home service or debit insurance companies - *answers * home
service insurers
, Rhode Island insurance exam
when 3rd party ownership is involved, applicants who also happen to be the stated primary
beneficiary are required to have - *answers * insurable interest in the proposed insured
which is considered a statement that is assured to be true in every respect - *answers *
warranty
which best describes a warranty - *answers * statement guaranteed to be true
which of these is not considered to be an element of an insurance contract - *answers *
negotiating
a life insurance policy would be considered contract without? - *answers * insurable interest
all of the following (bilateral unilateral aleatory adhesion) are considered to be typical
characteristics describing the nature of an insurance contract except - *answers * bilateral
in an insurance contract the insurer is the only party who makes a legally enforceable promise
what kind of contract is this - *answers * unilateral
Taking receipt of premiums and holding them for the insurance company is an example of -
*answers * fiduciary responsibility
a policy of adhesion can only be modified by whom - *answers * the insurance company
In regards to representations or warranties, which of these statements is TRUE? - *answers * if
material to the risk, false representation will void a policy
the role of insurance is to - *answers * transfer the risk of financial loss from an individual or
business to an insurance company
organized and incorporated under state law owned by stockholders who get a paid share of the
company's profit through dividends. also referred to as a nonparticipating or non-par bc policy
holder do not participate in paid dividends - *answers * stock insurance company
organized and incorporated under state law. but they have no stockholders. instead, the
policyholders own the company. owners get paid a share of the companies profits through
dividends. participating or par companies bc policy owners do not participate in paid dividends -
*answers * mutual insurer companies
process of a stock company being converted into a mutual company - *answers * mutualization
process of a mutual company being converted into a stock company - *answers *
demutualization
an association formed to underwrite and issue insurance like coverage on certain items and
areas that might otherwise be uninsurable - *answers * Lloyds of London
are a specialized branch of the insurance industry that insurers other insurance company's risk.
*is an arrangement by which an insurance company transfers or sells a portion of the risk to a
reinsurance company - *answers * reinsurers
the insurance company transferring the risk - *answers * ceding company
industrial insurance sold by home service or debit insurance companies - *answers * home
service insurers
, Rhode Island insurance exam
when 3rd party ownership is involved, applicants who also happen to be the stated primary
beneficiary are required to have - *answers * insurable interest in the proposed insured
which is considered a statement that is assured to be true in every respect - *answers *
warranty
which best describes a warranty - *answers * statement guaranteed to be true
which of these is not considered to be an element of an insurance contract - *answers *
negotiating
a life insurance policy would be considered contract without? - *answers * insurable interest
all of the following (bilateral unilateral aleatory adhesion) are considered to be typical
characteristics describing the nature of an insurance contract except - *answers * bilateral
in an insurance contract the insurer is the only party who makes a legally enforceable promise
what kind of contract is this - *answers * unilateral
Taking receipt of premiums and holding them for the insurance company is an example of -
*answers * fiduciary responsibility
a policy of adhesion can only be modified by whom - *answers * the insurance company
In regards to representations or warranties, which of these statements is TRUE? - *answers * if
material to the risk, false representation will void a policy
