What is reinsurance - Study guides, Class notes & Summaries

Kentucky Life Insurance State Exam Practice Questions and Answers 2023 Solved The premiums paid by an employer for his employee's group life insurance are usually considered to be Tax-deductible to the employer Which of these is NOT considered to be a cost connected with an individual's death? Business expenses These are all accurate statements regarding universal life insurance EXCEPT Policy loans are not permitted Which of these is NOT relevant when determining the amount of persona...

Insurance level 1 Alberta exam Questions with Verified Solutions The philosophy behind insurance is to a) provide a vehicle through which wealthy individuals and corporations may protect their property against catastrophic loss b)allow insurers to grow larger and more stable, thus creating jobs and supporting the economy c) spread the losses of the few amongst the premiums of the many d) spread the losses of the many amongst the premiums of the few spread the losses of the few amongst ...

What type of reinsurance contract involves two companies automatically sharing their risk exposure? treaty A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a risk retention group Brainpower Read More What is the name of the law that requires insurers to disclose information gathering practices and where the information was obtained? Fair Credit Reporting Act The stated amount or percent of liquid assets that ...

From a risk management viewpoint, insurance is used to A. Prevent the cost of losses B. Reduce the cost of losses C. Transfer the cost of losses D. Isolate the cost of losses. - ANSWER ☑☑C. Transfer the cost of losses. A loss exposure is: A. Any condition that presents the possibility of a loss. B. Any condition that precludes the chance of loss. C. The same thing as a peril. D. The same thing as a hazard. - ANSWER ☑☑A. Any condition that present the possibility of a loss. ...

NJ Life Producer Exam Correct answers latest update Which of the following amounts must decrease in a decreasing term? Death benefit In life insurance, insurable interest must exist at the time the.. Producer writes an on a proposed insured An applicant makes an offer to the insurer when they pay an initial premium with the application Which of the following makes Universal Life insurance different from other forms of permanent insurance? Premium Schedule An insurer that...

An insured owns a term policy with a guaranteed renewable option. When the end of the policy draws near, the insured answers medical questions in order to prove insurability and qualifies for a discounted premium rate. Which option best describes this scenario? 1) preferred premium reduction 2) contract review 3) revision of consideration 4) re-entry - ️️4) re-entry What method do insurers use to protect themselves against catastrophic losses? 1) pro rata liability 2) risk manageme...

C16 THE BUSINESS OF INSURANCE EXAM QUESTIONS AND CORRECT ANSWERS 2024/2025 GRADED A+. 2 / 24 1. List the two fundamental principles of insurance.: 1.The premiums of themany are used to pay the losses of the few. 2. The premiums shall be commensurate with the risk. -Insurance fulfils a societal need -Provides consumers with financial security for particular types of accidental losses.Also underpins the economy facilitating economic growth and societal development -Insurance is the prom...

WFG Final Exam Questions and Answers 100% Correct John owns an insurance policy that gives him the right to share in the insurer's surplus. What kind of policy is this? -Non-participating -Contributory -Participating -Surplus - Correct Answer ️️ -"Participating". Participating policies give the policyowner the right to share in the insurer's surplus. Which of the following is NOT a benefit of insurance? -Reduces the uncertainty of loss exposures -Losses due to fraud are elimi...

WebCE Quizzes: General Insurance & Life Insurance with Complete Solutions WebCE Quizzes: General Insurance & Life Insurance with Complete Solutions WebCE Quizzes: General Insurance & Life Insurance with Complete Solutions Buying life or health insurance is an example of which risk management technique? risk avoidance risk reduction risk retention risk transfer - ANSWER-risk transfer What is the mathematical concept of probability that helps insurers estimate the s...

Name four examples of alternative capital - Answer-Pension Plan Endowments Hedge Funds Alt. Asset Manager what is it called when a reinsurer transfers risk to another reinsurer? - Answer-Retrocession who is the reinsurer who the additional risk is ceded to? - Answer-Retrocessionaire Who is the primary or reinsurer who transfers the risk? - Answer-cedent Where are the top insurance markets? - Answer-US China Japan What is the US insurance market driven by? - Answer-property and casualty...