Which of the following describes a participating life insurance policy? -

1

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 / 4

2 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 / 4

3 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 / 4

4

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