Mass State Life Insurance updated 2024 with verified solutions

Which of the following describes a participating life insurance policy? - Ans: A participating life policy is one in which the policyowner receives dividends deriving from the company's divisible surplus What type of reinsurance contract between two insurers involves an automatic sharing of the risks assumed? - Ans: Under treaty reinsurance, each party automatically accepts specific percentages of the insurer's business. At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? - Ans: Upon completion of the application The State Guaranty Association guarantees - Ans: that a claim will be paid if an admitted insurer becomes insolvent Dividends from a mutual insurance company are paid to whom? - Ans: Policyholders What is considered the accounting measurement of an insurance company's future obligations to its policyowners? - Ans: reserves A survivorship life insurance policy usually covers how many lives? - Ans: 2 At what point are death proceeds paid in a joint life insurance policy? - Ans: When the first insured dies Which of these statements accurately portrays an adjustable life insurance policy? - Ans: Policy can alternate between forms of term and whole life insurance What kind of life insurance policy allows a policyowner the choice of investments along with flexible premium payments? - Ans: variable universal life