XCEL Chapter 1 Exam Review QUESTIONS WITH CORRECT ANSWERS

Stock insurer CORRECT ANS A non-participating company is also called Insurance policy CORRECT ANS Contract that involves one party which indemnifies another when a loss arises from an unknown event Mutual CORRECT ANS A type of insurer that is owned by its policy owners is called Because dividends are considered to be a return of premium CORRECT ANS Why are dividends from a mutual insurer not subject to taxation? Participating life insurance policy CORRECT ANS Life insurance policy issued by a mutual insurer provides a return of divisible surplus Exist for profit CORRECT ANS Fraternal Benefit Society does NOT Reinsurance CORRECT ANS Type of insurance where an insurer transfers loss exposures from policies written for its insurers It is the distribution of excess of funds accumulated by the insurer on participating policies CORRECT ANS What is a true statement regarding a life insurance policy dividend? Mutual Insurer CORRECT ANS Insurer owned by its policyholders Reinsurer CORRECT ANS A life insurance company has transferred some of its risk to another insurer. The insurer assuming the risk is called the