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Colorado Life & Health Insurance Exam | Guide with
Questions and Verified Answers | 100% Correct
(Latest )
Actuarial Department - (answers)calculates policy rates, reserves, and dividends
Alien Insurer - (answers)An insurer domiciled in a country other than the United
States.
Admitted Insurer - (answers)An insurer to which a state insurance department
has granted a license to do business within that state.
Broker - (answers)represents themselves and the insured
Captive Insurer - (answers)an insurer owned by a parent firm for the purpose of
insuring the parent firm's loss exposures
Certificate Authority - (answers)A license issued to an insurer by a department of
insurance (or equivalent state agency), which authorizes that company to conduct
insurance business in that particular state.
Claims Department - (answers)responsible for processing, investigating, and
paying claims
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Divisible Surplus - (answers)the amount of earnings paid to policyowners as
dividends after the insurance company sets aside funds required to cover
reserves, operating expenses, and general business purposes
Domestic Insurer - (answers)an insurer with its principal or home office in a state
where it is authorized
Foreign Insurer - (answers)insurer with its principal office or domicile location in a
state different from the state it is transacting insurance business
Fraternal Benefit Society - (answers)nonprofit benevolent organizations that
provide insurance to its members
Industrial Insurer - (answers)make up a specialized branch of the industry,
primarily providing policies with small face amounts with weekly premiums. Other
names for industrial insurers include home service or debit insurers.
insurance - (answers)The transfer of risk through the pooling or accumulation of
funds.
insured - (answers)the customer receiving insurance protection under an
insurance policy
insurer - (answers)insurance company
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Lloyd's of London - (answers)NOT an insurer, but a group of individuals and
companies that underwrite unusual insurance
Multi-line insurer - (answers)an insurance company or independent agent that
provides a one-stop shop for businesses or individuals seeking coverage for all
their insurance needs. For example, many large insurers offer individual policies
for automobile, homeowner, long-term care, life and health insurance needs.
Mutual Insurance Company - (answers)insurance companies characterized by
having no capital stock, being owned by its policy owners, and usually issue
participating insurance
Non-admitted Insurer - (answers)an insurer not licensed to do business in the
state
nonparticipating policy - (answers)typically issued by stock companies, do not
allow policyowners to participate in dividends or electing the board of directors
participating plan - (answers)an insurance policy under which the policy owners
share in the company's earnings through receipt of dividends and also elect the
company's board of directors
Private (Commercial) Insurer - (answers)Private or commercial insurance
companies are companies owned by private citizens or groups that offer one or
more insurance lines. Commercial insurers are NOT government-owned.
Colorado Life & Health Insurance Exam | Guide with
Questions and Verified Answers | 100% Correct
(Latest )
Actuarial Department - (answers)calculates policy rates, reserves, and dividends
Alien Insurer - (answers)An insurer domiciled in a country other than the United
States.
Admitted Insurer - (answers)An insurer to which a state insurance department
has granted a license to do business within that state.
Broker - (answers)represents themselves and the insured
Captive Insurer - (answers)an insurer owned by a parent firm for the purpose of
insuring the parent firm's loss exposures
Certificate Authority - (answers)A license issued to an insurer by a department of
insurance (or equivalent state agency), which authorizes that company to conduct
insurance business in that particular state.
Claims Department - (answers)responsible for processing, investigating, and
paying claims
,2|Page
Divisible Surplus - (answers)the amount of earnings paid to policyowners as
dividends after the insurance company sets aside funds required to cover
reserves, operating expenses, and general business purposes
Domestic Insurer - (answers)an insurer with its principal or home office in a state
where it is authorized
Foreign Insurer - (answers)insurer with its principal office or domicile location in a
state different from the state it is transacting insurance business
Fraternal Benefit Society - (answers)nonprofit benevolent organizations that
provide insurance to its members
Industrial Insurer - (answers)make up a specialized branch of the industry,
primarily providing policies with small face amounts with weekly premiums. Other
names for industrial insurers include home service or debit insurers.
insurance - (answers)The transfer of risk through the pooling or accumulation of
funds.
insured - (answers)the customer receiving insurance protection under an
insurance policy
insurer - (answers)insurance company
, 3|Page
Lloyd's of London - (answers)NOT an insurer, but a group of individuals and
companies that underwrite unusual insurance
Multi-line insurer - (answers)an insurance company or independent agent that
provides a one-stop shop for businesses or individuals seeking coverage for all
their insurance needs. For example, many large insurers offer individual policies
for automobile, homeowner, long-term care, life and health insurance needs.
Mutual Insurance Company - (answers)insurance companies characterized by
having no capital stock, being owned by its policy owners, and usually issue
participating insurance
Non-admitted Insurer - (answers)an insurer not licensed to do business in the
state
nonparticipating policy - (answers)typically issued by stock companies, do not
allow policyowners to participate in dividends or electing the board of directors
participating plan - (answers)an insurance policy under which the policy owners
share in the company's earnings through receipt of dividends and also elect the
company's board of directors
Private (Commercial) Insurer - (answers)Private or commercial insurance
companies are companies owned by private citizens or groups that offer one or
more insurance lines. Commercial insurers are NOT government-owned.
