MICHIGAN LIFE INSURANCE ACTUAL
QUESTIONS AND CORRECT ANSWERS
STUDY GUIDE
●● Adjuster
Answer: This is the person who investigates claims and arranges for
them to be settled or denied
●● Alien insurer
Answer: In the United States, this is an insurer, whose principal office
and domicile location is outside this country
●● Admitted insurer
Answer: This is an insurer who has received a certificate of authority
from a state department of insurance which authorizes them to conduct
insurance business in that state
●● Agent
Answer: This is an individual or organization that's authorized to solicit,
cell, and transact (bind) coverage for specific insurance providers under
the terms of one or more agent contracts
●● Authorized insurer
,Answer: This is an admitted insurer
●● Broker
Answer: This is a person who represents himself and the insured (I.e. the
client or customer) a broker cannot bind coverage on behalf of an
insurance carrier because a broker is not appointed as an agent
●● Captive insurer
Answer: This is an insurer that's established and owned by a parent firm
for the purpose of ensuring the parent firms loss exposure
●● Certificate of authority
Answer: This is a licensed that's issued to an insurer by an insurance
department (or equivalent state agency) that authorizes that company to
conduct insurance business in that particular state
●● Claims department
Answer: This is the department that's responsible for processing,
investigating, and paying claims
●● Divisible surplus
Answer: This is the amount of earnings that are paid to policy owners as
dividends after the insurance company sets. Aside funds required to
cover reserves, operating expenses, and general business purposes.
,●● Domestic insurer
Answer: This is an insurer with its principal or home office in the state
in which its authorized
●● Foreign insurer
Answer: This is the insurer whose principal office or domicile location is
an estate that's different from the state in which it's transacting insurance
business
●● Insurance
Answer: This is the transfer of risks through the pooling or accumulation
of funds
●● Insured
Answer: This is the customer who receives insurance protection under
an insurance policy
●● Insurer
Answer: This is an insurance company
●● Lloyds of London
Answer: This is not an insurer, but a group of individuals and companies
that underwrite unusual insurance policies
, ●● Marketing division
Answer: This is the division responsible for acquiring applicants through
various advertising media
●● Monoline insurance
Answer: This is an insurance care that only sells one line of insurance
●● Multi line insurer
Answer: This is an insurance company or independent agent that
provides a "one stop shop" for businesses or individuals who are seeking
coverage for all of their insurance needs. For example, Minnie, large
insurer, offer individual policies for automobile, homeowner, long-term
care, life, and health insurance needs.
●● Mutual insurance company
Answer: This is an insurance company this characterized by having no
Stock, being owned by their policy owners, and typically issuing
participating insurance
●● Non-admitted (unauthorized) insurer
Answer: This is a policy that's typically issued by stock companies. This
type of policy doesn't allow policy owners to participate in dividends or
to elect the board of directors.
QUESTIONS AND CORRECT ANSWERS
STUDY GUIDE
●● Adjuster
Answer: This is the person who investigates claims and arranges for
them to be settled or denied
●● Alien insurer
Answer: In the United States, this is an insurer, whose principal office
and domicile location is outside this country
●● Admitted insurer
Answer: This is an insurer who has received a certificate of authority
from a state department of insurance which authorizes them to conduct
insurance business in that state
●● Agent
Answer: This is an individual or organization that's authorized to solicit,
cell, and transact (bind) coverage for specific insurance providers under
the terms of one or more agent contracts
●● Authorized insurer
,Answer: This is an admitted insurer
●● Broker
Answer: This is a person who represents himself and the insured (I.e. the
client or customer) a broker cannot bind coverage on behalf of an
insurance carrier because a broker is not appointed as an agent
●● Captive insurer
Answer: This is an insurer that's established and owned by a parent firm
for the purpose of ensuring the parent firms loss exposure
●● Certificate of authority
Answer: This is a licensed that's issued to an insurer by an insurance
department (or equivalent state agency) that authorizes that company to
conduct insurance business in that particular state
●● Claims department
Answer: This is the department that's responsible for processing,
investigating, and paying claims
●● Divisible surplus
Answer: This is the amount of earnings that are paid to policy owners as
dividends after the insurance company sets. Aside funds required to
cover reserves, operating expenses, and general business purposes.
,●● Domestic insurer
Answer: This is an insurer with its principal or home office in the state
in which its authorized
●● Foreign insurer
Answer: This is the insurer whose principal office or domicile location is
an estate that's different from the state in which it's transacting insurance
business
●● Insurance
Answer: This is the transfer of risks through the pooling or accumulation
of funds
●● Insured
Answer: This is the customer who receives insurance protection under
an insurance policy
●● Insurer
Answer: This is an insurance company
●● Lloyds of London
Answer: This is not an insurer, but a group of individuals and companies
that underwrite unusual insurance policies
, ●● Marketing division
Answer: This is the division responsible for acquiring applicants through
various advertising media
●● Monoline insurance
Answer: This is an insurance care that only sells one line of insurance
●● Multi line insurer
Answer: This is an insurance company or independent agent that
provides a "one stop shop" for businesses or individuals who are seeking
coverage for all of their insurance needs. For example, Minnie, large
insurer, offer individual policies for automobile, homeowner, long-term
care, life, and health insurance needs.
●● Mutual insurance company
Answer: This is an insurance company this characterized by having no
Stock, being owned by their policy owners, and typically issuing
participating insurance
●● Non-admitted (unauthorized) insurer
Answer: This is a policy that's typically issued by stock companies. This
type of policy doesn't allow policy owners to participate in dividends or
to elect the board of directors.
