XCEL Chapter 1 Exam Review
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1. Stock insurer A non-participating company is also called
2. Insurance policy Contract that involves one party which indemnifies another when a
loss arises from an unknown event
3. Mutual A type of insurer that is owned by its policy owners is called
4. Because dividends are con- Why are dividends from a mutual insurer not subject to taxation?
sidered to be a return of
premium
5. Participating life insurance Life insurance policy issued by a mutual insurer provides a return of
policy divisible surplus
6. Exist for profit Fraternal Benefit Society does NOT
7. Reinsurance Type of insurance where an insurer transfers loss exposures from
policies written for its insurers
8. It is the distribution of ex- What is a true statement regarding a life insurance policy dividend?
cess of funds accumulated
by the insurer on partici-
pating policies
9. Mutual Insurer Insurer owned by its policyholders
10. Reinsurer A life insurance company has transferred some of its risk to another
insurer. The insurer assuming the risk is called the
11. Marketing One important function of an insurance company is to identify and
sell to potential customers. Which of these BEST describes this
function?
12. Participating policy
1/3
Study online at https://quizlet.com/_530o5f
1. Stock insurer A non-participating company is also called
2. Insurance policy Contract that involves one party which indemnifies another when a
loss arises from an unknown event
3. Mutual A type of insurer that is owned by its policy owners is called
4. Because dividends are con- Why are dividends from a mutual insurer not subject to taxation?
sidered to be a return of
premium
5. Participating life insurance Life insurance policy issued by a mutual insurer provides a return of
policy divisible surplus
6. Exist for profit Fraternal Benefit Society does NOT
7. Reinsurance Type of insurance where an insurer transfers loss exposures from
policies written for its insurers
8. It is the distribution of ex- What is a true statement regarding a life insurance policy dividend?
cess of funds accumulated
by the insurer on partici-
pating policies
9. Mutual Insurer Insurer owned by its policyholders
10. Reinsurer A life insurance company has transferred some of its risk to another
insurer. The insurer assuming the risk is called the
11. Marketing One important function of an insurance company is to identify and
sell to potential customers. Which of these BEST describes this
function?
12. Participating policy
1/3
