Florida Life Insurance Exam Guide Questions And Actual Answers 2024

Commercial Insurers - Answer Also known as "Private" Insurance, and they are in the business of selling for a profit. Sotck Companies - Answer Incorporated infer state laws for the purpose of making a profit for its stockholders (shareholders) They are nonparticipating insurers Multi-line insurer - Answer A company selling more the one line of insurance. Mutual Companies - Answer They are owned by their policyholders, They are a participating insurers Nonparticipating Insurers - Answer Policyholders do not participate in receiving dividends or electing the board of directors, unless they are also a stockholder of the company. Participating Company - Answer Policyholders PARTICIPATE in receiving dividends and electing the board of directors. Mixed Insurer - Answer When a company operates as bpth a participating and nonparticipating , dividends can NEVER be guaranteed regardless the type the company offering them. A pure assesment mutual company1 - Answer Operates based on loss-sharing by group members. No premium is payable in advance. Instead, each member is assessed an individual portion of losses that occur. An advance premium assessment mutual - Answer Charges a premium at the beginning of the policy period. If the original premiums exceed the operating expenses and losses, the surplus is returned to the policyholders as dividends. However, of total premiums are not enough to meet losses, additional assessments are levied against the members. Normally, the amount of assessment that may be levied is limited either by state law or simply as a provision in the insurer's by-laws.