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.
, Demutualization - ✔✔✔✔-the process of a mutual company
being converted into a stock company.
Lloyd's of London - ✔✔✔✔-An association formed to
underwrite and issue insurance like coverage on certain
items and areas that might otherwise be uninsurable.
Reinsurers - ✔✔✔✔-Are a specialized branch of the insurance
industry that insures other insurance company's risk. A
common reinsurance contract between two insurance
companies is called treaty reinsurance, which involves an
automatic sharing of the risks assumed.
Reserves - ✔✔✔✔-Are the accounting measurement of an
insurer's future obligations to its policyholders.
What are insurance companies call when the sell more than
one insurance? - ✔✔✔✔-Multi-line insurers
Liquidity - ✔✔✔✔-Indicates a company's ability to make
unpredictable payouts to policyowners.
Mutual Companies- Participating - ✔✔✔✔-vote for members of
the board of directors. By issuing participating polices that
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.
, Demutualization - ✔✔✔✔-the process of a mutual company
being converted into a stock company.
Lloyd's of London - ✔✔✔✔-An association formed to
underwrite and issue insurance like coverage on certain
items and areas that might otherwise be uninsurable.
Reinsurers - ✔✔✔✔-Are a specialized branch of the insurance
industry that insures other insurance company's risk. A
common reinsurance contract between two insurance
companies is called treaty reinsurance, which involves an
automatic sharing of the risks assumed.
Reserves - ✔✔✔✔-Are the accounting measurement of an
insurer's future obligations to its policyholders.
What are insurance companies call when the sell more than
one insurance? - ✔✔✔✔-Multi-line insurers
Liquidity - ✔✔✔✔-Indicates a company's ability to make
unpredictable payouts to policyowners.
Mutual Companies- Participating - ✔✔✔✔-vote for members of
the board of directors. By issuing participating polices that
