Questions and Answers
An insurer's claim settlement practices are regulated by the?
State insurance departments
Which of the following is an insurer established by a parent company for the purpose of insuring the parent company's loss exposure?
Which of the following is a contract that involves one party which indemnifies another when a loss arises from an unknown event?
John has an insurance policy that gives him the right to share in the insurer's surplus. What kind of policy is this?
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Which of the following is NOT a benefit of insurance?
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What is a participating life insurance policy?
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What is considered to be the primary reason for buying life insurance?
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Which of the following is a type of insurance where an insurer transfers loss exposures from policies written for its insureds?
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A participating company is also referred to as which type of insurer?
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Study Notes
Claim Settlement Practices
- Insurer's claim settlement practices are regulated by state insurance departments.
Captive Insurer
- A captive insurer is specifically established by a parent company to insure its own loss exposures.
Insurance Policy
- An insurance policy is a contract that indemnifies one party against losses arising from unknown events.
Participating Policy
- A participating insurance policy allows the policyholder to share in the insurer's surplus.
Insurance Benefits
- One misconception is that insurance eliminates losses due to fraud; this is NOT a benefit of insurance.
Participating Life Insurance
- Participating life insurance policies enable policyowners to receive dividends, which represent a share of the company's surplus.
Purpose of Life Insurance
- The primary reason for purchasing life insurance is to provide death benefits to beneficiaries.
Reinsurance
- Reinsurance is a type of insurance where an insurer transfers loss exposures from policies issued to its insureds to another insurer.
Mutual Insurer
- A participating company is also known as a mutual insurer, emphasizing its structure where policyholders have a stake in the company.
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Description
Test your knowledge of basic insurance principles with these flashcards. Each card provides essential definitions and concepts related to insurance practices and regulations. Perfect for students and professionals alike looking to reinforce their understanding of the insurance industry.
