FLORIDA LIFE AND HEALTH 2-15 FINAL EXAM ACTUAL 100%

FLORIDA LIFE AND HEALTH 2-15 FINAL EXAM ACTUAL 100% Mutualization - -The process of a stock company being to converted into a mutual company. Insurance - -1.Spreads the costs of the unexpected financial loss to many individuals or a large numbe of people, Life Insurance - -Guarantees a specific sum of money when someone dies. Health Insurance - -provides funds to cover medical bills due to sickness or injury and to also cover the loss of money because of a disability. Annuities - -Provide a stream of income by making a series of payments over a certain period of time. The Role of Insurance - -Is to transfer the risk of financial loss from an individual or business to an insurance company. What to different insurance companies are available? - -is available from both private companies and the government. Private companies - -are also known as commercial insurance companies. They are funded through premiums and sell insurance for a profit. Government Companies - -are funded with taxes and serve national and state social purposes. What are two commercial insurer companies? - -Stock companies and Mutual Companies Stock Insurance Company - --Is organized and incorporated under state law. -Stock insurance companies are owned by the stockholders, who get paid a share of the company's profit through dividends. -They are also referred to as a nonparticipating or non-par. Mutual Insurers - --Companies are also organized and incorporated under state laws. -Have no stockholders, instead the policyholders own the company. -Owners get paid a share of the company's profits through dividends . -Referred to as participating or par companies because the policy owners do participate in being paid dividends.