Property Casualty Final Exam Questions with 100%
correct Answers 2024
The reinsurer accepts the transfer according to an agreement called
A Treaty
Stock insurer
-Owned by stockholders
-Dividend is not guaranteed
-Dividend is paid to stockholder
-Dividend is taxable to stockholders
-Issues non-participating policies
Mutual insurer
-owned by policyholders (customers)
-dividend is not guaranteed
,-dividend is paid to policyholder
-dividend is not taxable; considered refund of premium
-issues participating policies
Fraternal insurer
provides insurance and other benefits
must be a member of the society to get the benefits
Reciprocal insurer
-unincorporated
-members are required to pay an assessed amount if a loss to any member of
the group occurs
-run by an attorney-in-fact
Lloyd's association
insurance provided by individual underwriters, not companies
Insures unusual risks
Hole-in-one contest
, Athlete's arm
Celebrity's hair
Risk Retention Group
Liability insurance company created for policyholders from the same industry
Risk purchasing group
a group of businesses from the same industry joining together to buy liability
insurance from an insurance company.
The risk purchasing group is not the insurance company.
Self-insurance
-A business that pays its own claims
-Reserves funds to cover losses
-Retains risk rather than transfers
Federal Government provides residual market insurance
insurance from the state or federal government
Admitted or authorized
correct Answers 2024
The reinsurer accepts the transfer according to an agreement called
A Treaty
Stock insurer
-Owned by stockholders
-Dividend is not guaranteed
-Dividend is paid to stockholder
-Dividend is taxable to stockholders
-Issues non-participating policies
Mutual insurer
-owned by policyholders (customers)
-dividend is not guaranteed
,-dividend is paid to policyholder
-dividend is not taxable; considered refund of premium
-issues participating policies
Fraternal insurer
provides insurance and other benefits
must be a member of the society to get the benefits
Reciprocal insurer
-unincorporated
-members are required to pay an assessed amount if a loss to any member of
the group occurs
-run by an attorney-in-fact
Lloyd's association
insurance provided by individual underwriters, not companies
Insures unusual risks
Hole-in-one contest
, Athlete's arm
Celebrity's hair
Risk Retention Group
Liability insurance company created for policyholders from the same industry
Risk purchasing group
a group of businesses from the same industry joining together to buy liability
insurance from an insurance company.
The risk purchasing group is not the insurance company.
Self-insurance
-A business that pays its own claims
-Reserves funds to cover losses
-Retains risk rather than transfers
Federal Government provides residual market insurance
insurance from the state or federal government
Admitted or authorized
