Life Insurance (Arkansas Statutes, Rules, and Regs For Life And Health Insurance) Exam Questions & Answers

_Solicitation -Negotiations -Sale -Advising an individual concerning coverage or claims - ANSWER-The Term Insurance Transaction includes what? Insurer (principal) - ANSWER-The ______ is the company or organization that issues a policy of insurance Domestic - ANSWER-A _________ insurer is an insurance company that is incorporated in this state. -The company's home office is in the state in which it was formed. Foreign - ANSWER-A ________ insurer is an insurance company that is incorporated in another state or territorial possession Alien - ANSWER-A ______ insurer is an insurance company that is incorporated outside the United States. Stock Companies Non Participating - ANSWER-Companies owned by the stockholders who provide the capital necessary to establish and operate the insurance company and who share in any profits or losses. -Issue ___________ policies Mutual Companies Non taxable - ANSWER-are owned by the policy owners and issue participating policies -A return of excess premiums and are therefore ________ Fraternal Benefit Society - ANSWER-Is an organized formed to provide insurance benefits for members of an affiliated lodge, religious organization, or fraternal organization with a representative form of government. Certificate of Authority - ANSWER-Before insurers may transact business in a specific state, they must apply for and be granted a license or _________ from the state department of insurance and meet any financial requirements set by the state. Authorized or Admitted - ANSWER-Insurers who meet the states financial requirements and are approved to transact business in the state are considered _____________ into the state as a legal insurer.