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XCEL Chapter 1 Exam Review Practice
Questions and Answers
Stock insurer - Answer✔️✔️-A non-participating company is also called
Insurance policy - Answer✔️✔️-Contract that involves one party which
indemnifies another when a loss arises from an unknown event
Mutual - Answer✔️✔️-A type of insurer that is owned by its policy owners is
called
Because dividends are considered to be a return of premium - Answer✔️✔️-
Why are dividends from a mutual insurer not subject to taxation?
Participating life insurance policy - Answer✔️✔️-Life insurance policy
issued by a mutual insurer provides a return of divisible surplus
Exist for profit - Answer✔️✔️-Fraternal Benefit Society does NOT
Reinsurance - Answer✔️✔️-Type of insurance where an insurer transfers
loss exposures from policies written for its insurers
It is the distribution of excess of funds accumulated by the insurer on
participating policies - Answer✔️✔️-What is a true statement regarding a life
insurance policy dividend?
Mutual Insurer - Answer✔️✔️-Insurer owned by its policyholders
1
XCEL Chapter 1 Exam Review Practice
Questions and Answers
Stock insurer - Answer✔️✔️-A non-participating company is also called
Insurance policy - Answer✔️✔️-Contract that involves one party which
indemnifies another when a loss arises from an unknown event
Mutual - Answer✔️✔️-A type of insurer that is owned by its policy owners is
called
Because dividends are considered to be a return of premium - Answer✔️✔️-
Why are dividends from a mutual insurer not subject to taxation?
Participating life insurance policy - Answer✔️✔️-Life insurance policy
issued by a mutual insurer provides a return of divisible surplus
Exist for profit - Answer✔️✔️-Fraternal Benefit Society does NOT
Reinsurance - Answer✔️✔️-Type of insurance where an insurer transfers
loss exposures from policies written for its insurers
It is the distribution of excess of funds accumulated by the insurer on
participating policies - Answer✔️✔️-What is a true statement regarding a life
insurance policy dividend?
Mutual Insurer - Answer✔️✔️-Insurer owned by its policyholders
1
