Treaty reinsurance - Study guides, Class notes & Summaries

What type of reinsurance contract involves two companies automatically sharing their risk exposure? - Answer Treaty 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 - Answer reserves When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have - Answer insurable interest Statements made on an insurance application that are bel...

Dividends from a stock company are normally sent to: Beneficiaries Shareholders Policy holders Insureds Shareholders Which of the following financial products creates an instant estate, no matter when the date of death? Mutual funds Life insurance Certificate of deposit Deferred annuity Life insurance Which of the following outlines the authority given to the producer on behalf of the insurer? Rebating arrangement Commingling contract Controlled business clause Producer contrac...

CISR Agency Operations Self Quiz 50 Questions with Answers Which one of the following best describes actual authority? - CORRECT ANSWER When the agency is expressly given authority in the agency contract Which one of the following statements best describes the standard of care an insurance agency owes an insurance company? - CORRECT ANSWER Loyalty, good faith, reasonable care and contractual duties Which one of the following is not one of the four benefits of ethical behavior? - CORRE...

Dividends from a stock company are normally sent to: Beneficiaries Shareholders Policy holders Insureds - ANSWER -Shareholders Which of the following financial products creates an instant estate, no matter when the date of death? Mutual funds Life insurance Certificate of deposit Deferred annuity - ANSWER -Life insurance Which of the following outlines the authority given to the producer on behalf of the insurer? Rebating arrangement Commingling contract Controlled business c...

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 ...

Material Misrepresentation - - a false statement that changes the outcome of issuing a policy - generally with the health statement Surplus Lines - any type of insurance for which there is no available market within the state, and the coverage must be placed with a non admitted insurer Mutual Insurer - An insurer that is owned by its policyholders and formed as a corporation for the purpose of providing insurance to them.- Non Taxable dividends & Participating Polcies Insurance - Transfer ...

Massachusetts Life and Health Insurance Exam Already Passed Insurance Transfer of Risk Risk Uncertainty/ Possibility of Loss Exposure Risks for which the insurance company would be liable Peril Cause of Loss Hazard Something that causes an increase in the chance of loss Physical Hazard Hazard that can be seen Moral Hazard A belief that intentionally causing a loss is acceptable Morale Hazard Carelessness STARR Method of handling risk S- Method of handling risks Sha...

Life & Health Insurance Exam Latest Update Graded A+ Insurance transfer of risk Speculative risk has a possibility of both loss and gain Pure risk only has a possibility of loss (no gain) Exposure risks for which an insurance company would be liable expressed in units Peril cause of a loss Hazard an increase in the chance of loss Moral hazard arise from people's character (faking a loss) Morale hazard state of mind or careless attitude (accidentally leaving door un...

"IN REM" indicates Liens are against the - Answer Property rather than against the person. "MAJOR LINES " - Answer life health property casualty personal lines property surplus lines title insurance "MINOR LINES " - Answer bail bonds credit ticket group mort. cancel. mortgage guaranty legal insurance self-storage "Notice Of Settlement" is good for - Answer 45 days "Reinsurance treaty"/Treaties are usually - Answer neg...

Mass State Life Insurance Exam Questions and Answers Already Passed Which of the following describes a participating life insurance policy? A participating life policy is one in which the policyowner receives dividends deriving from the company's divisible surplus What type of reinsurance contract between two insurers involves an automatic sharing of the risks assumed? Under treaty reinsurance, each party automatically accepts specific percentages of the insurer's business. At wh...