Colorado Life and Health Insurance Exam|Questions With
Correct Answers|Verified
Actuarial Department - ✔calculates policy rates, reserves, and dividends
Alien Insurer - ✔An insurer domiciled in a country other than the United States.
Admitted Insurer - ✔An insurer to which a state insurance department has granted a
license to do business within that state.
Broker - ✔represents themselves and the insured
Captive Insurer - ✔an insurer owned by a parent firm for the purpose of insuring the
parent firm's loss exposures
Certificate Authority - ✔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 - ✔responsible for processing, investigating, and paying claims
Divisible Surplus - ✔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 - ✔an insurer with its principal or home office in a state where it is
authorized
, Foreign Insurer - ✔insurer with its principal office or domicile location in a state different
from the state it is transacting insurance business
Fraternal Benefit Society - ✔nonprofit benevolent organizations that provide insurance
to its members
Industrial Insurer - ✔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 - ✔The transfer of risk through the pooling or accumulation of funds.
insured - ✔the customer receiving insurance protection under an insurance policy
insurer - ✔insurance company
Lloyd's of London - ✔NOT an insurer, but a group of individuals and companies that
underwrite unusual insurance
Multi-line insurer - ✔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 - ✔insurance companies characterized by having no capital
stock, being owned by its policy owners, and usually issue participating insurance
Non-admitted Insurer - ✔an insurer not licensed to do business in the state
Correct Answers|Verified
Actuarial Department - ✔calculates policy rates, reserves, and dividends
Alien Insurer - ✔An insurer domiciled in a country other than the United States.
Admitted Insurer - ✔An insurer to which a state insurance department has granted a
license to do business within that state.
Broker - ✔represents themselves and the insured
Captive Insurer - ✔an insurer owned by a parent firm for the purpose of insuring the
parent firm's loss exposures
Certificate Authority - ✔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 - ✔responsible for processing, investigating, and paying claims
Divisible Surplus - ✔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 - ✔an insurer with its principal or home office in a state where it is
authorized
, Foreign Insurer - ✔insurer with its principal office or domicile location in a state different
from the state it is transacting insurance business
Fraternal Benefit Society - ✔nonprofit benevolent organizations that provide insurance
to its members
Industrial Insurer - ✔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 - ✔The transfer of risk through the pooling or accumulation of funds.
insured - ✔the customer receiving insurance protection under an insurance policy
insurer - ✔insurance company
Lloyd's of London - ✔NOT an insurer, but a group of individuals and companies that
underwrite unusual insurance
Multi-line insurer - ✔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 - ✔insurance companies characterized by having no capital
stock, being owned by its policy owners, and usually issue participating insurance
Non-admitted Insurer - ✔an insurer not licensed to do business in the state
