Questions and Answers
What type of reinsurance contract involves two companies automatically sharing their risk exposure?
At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act?
Upon completion of the application
An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the
Fair Credit Reporting Act
Who elects the governing body of a mutual insurance company?
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The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future obligations to its policyholders is called
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Study Notes
Reinsurance
- A treaty is a type of reinsurance contract where two companies automatically share risk exposure.
Fair Credit Reporting Act
- Life insurance applicants must be informed of their rights under this act upon completing the application.
- Applicants must also be made aware of any investigations into their reputation and character as stipulated by the Fair Credit Reporting Act.
Mutual Insurance Companies
- Policyholders are responsible for electing the governing body of a mutual insurance company.
Insurer Reserves
- Reserves refer to the required amount or percentage of liquid assets that insurers must maintain to meet future obligations to policyholders.
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Description
Test your knowledge on the basic principles of life and health insurance and annuities with this chapter 1 quiz. You'll find key concepts such as reinsurance contracts and applicant rights under the Fair Credit Reporting Act. Perfect for anyone looking to deepen their understanding of insurance fundamentals.
