Quiz____?
Which of the following describes a participating life insurance policy? -
Answer✓✓
A participating life policy is one in which the policyowner receives dividends deriving from
the company's divisible surplus
Quiz____?
What type of reinsurance contract between two insurers involves an automatic sharing of
the risks assumed? -
Answer✓✓
Under treaty reinsurance, each party automatically accepts specific percentages of the
insurer's business.
Quiz____?
At what point must a life insurance applicant be informed of their rights that fall under the
Fair Credit Reporting Act? -
Answer✓✓
Upon completion of the application
Quiz____?
1
, The State Guaranty Association guarantees -
Answer✓✓
that a claim will be paid if an admitted insurer becomes insolvent
Quiz____?
Dividends from a mutual insurance company are paid to whom? -
Answer✓✓
Policyholders
Quiz____?
What is considered the accounting measurement of an insurance company's future
obligations to its policyowners? -
Answer✓✓
reserves
Quiz____?
A group-owned insurance company that is formed to assume and spread the liability risks of
its members is known as a -
Answer✓✓
risk retention group
Quiz____?
Which of the following is a syndicate established by a group of insurers to share
underwriting duties? -
Answer✓✓
2
, Lloyd's organization
Quiz____?
An agent's authority to bind an insurer to an insurance contract may be granted in the -
Answer✓✓
agent's contract and the insurance company's appointment
Quiz____?
Dividends from a stock insurance company are normally sent to -
Answer✓✓
shareholders
Quiz____?
Law of Large numbers -
Answer✓✓
-insurance is based on the sharing of risks among a large group of people
-states that the larger the number of people, the more predictable the actual losses will be
-companies use this data to calculate rates
Quiz____?
Speculative risk -
Answer✓✓
-involves opportunity for either loss or gain
-not covered by insurance companies
3
, Quiz____?
pure risk -
Answer✓✓
-a situation that can only result in a loss, there is no opportunity for financial gain
-only type of risk that is insurable
Quiz____?
treatment of risk through: avoidance -
Answer✓✓
simply avoiding as many risks as possible
-effective but not always practical
Quiz____?
treatment of risk through- reduction -
Answer✓✓
since we cannot avoid risk entirely we often attempt to lessen the possibility of a loss by
taking acting to reduce the risk
-
Quiz____?
treatment of risk through- sharing -
Answer✓✓
when a group of individuals or businesses with similar exposures share the losses that occur
within that group
4
Which of the following describes a participating life insurance policy? -
Answer✓✓
A participating life policy is one in which the policyowner receives dividends deriving from
the company's divisible surplus
Quiz____?
What type of reinsurance contract between two insurers involves an automatic sharing of
the risks assumed? -
Answer✓✓
Under treaty reinsurance, each party automatically accepts specific percentages of the
insurer's business.
Quiz____?
At what point must a life insurance applicant be informed of their rights that fall under the
Fair Credit Reporting Act? -
Answer✓✓
Upon completion of the application
Quiz____?
1
, The State Guaranty Association guarantees -
Answer✓✓
that a claim will be paid if an admitted insurer becomes insolvent
Quiz____?
Dividends from a mutual insurance company are paid to whom? -
Answer✓✓
Policyholders
Quiz____?
What is considered the accounting measurement of an insurance company's future
obligations to its policyowners? -
Answer✓✓
reserves
Quiz____?
A group-owned insurance company that is formed to assume and spread the liability risks of
its members is known as a -
Answer✓✓
risk retention group
Quiz____?
Which of the following is a syndicate established by a group of insurers to share
underwriting duties? -
Answer✓✓
2
, Lloyd's organization
Quiz____?
An agent's authority to bind an insurer to an insurance contract may be granted in the -
Answer✓✓
agent's contract and the insurance company's appointment
Quiz____?
Dividends from a stock insurance company are normally sent to -
Answer✓✓
shareholders
Quiz____?
Law of Large numbers -
Answer✓✓
-insurance is based on the sharing of risks among a large group of people
-states that the larger the number of people, the more predictable the actual losses will be
-companies use this data to calculate rates
Quiz____?
Speculative risk -
Answer✓✓
-involves opportunity for either loss or gain
-not covered by insurance companies
3
, Quiz____?
pure risk -
Answer✓✓
-a situation that can only result in a loss, there is no opportunity for financial gain
-only type of risk that is insurable
Quiz____?
treatment of risk through: avoidance -
Answer✓✓
simply avoiding as many risks as possible
-effective but not always practical
Quiz____?
treatment of risk through- reduction -
Answer✓✓
since we cannot avoid risk entirely we often attempt to lessen the possibility of a loss by
taking acting to reduce the risk
-
Quiz____?
treatment of risk through- sharing -
Answer✓✓
when a group of individuals or businesses with similar exposures share the losses that occur
within that group
4
