XCEL Ch. 1 Keywords Exam Questions and
Answers with Verified Solutions | Latest
Updated 2026
Actuarial Department Calculates policy rates, reserves, and
dividends.
Alien Insurer an insurer whose principal office and
domiciled
location is outside the country.
Broker Represents themselves and the insured
(i.e., the
client or customer).
Captive Insurer An issuer established and owned by a
parent firm
for the purpose of insuring the parent firm's
loss
exposure.
Certificate of Authority A license issued to an insurer by a
department of
insurance (or equivalent state agency),
which
authorizes that company to conduct
insurance
business in that particular state.
, Claims Department Is responsible for processing,
investigating, and
paying claims.
Divisible Surplus The amount of earnings paid to
policyowners as
dividends after the insurance company
sets aside
funds required to cover reserves, operating
expenses, and general business purposes.
Domestic Insurer An insurer with its principal or home office
in a
state where it is authorized.
Foreign Insurer An insurer with its principal office or
domicile
location in a state different from the state it
is
transacting insurance business.
Fraternal Benefit Society Nonprofit benevolent organizations that
provide
insurance to its members.
Answers with Verified Solutions | Latest
Updated 2026
Actuarial Department Calculates policy rates, reserves, and
dividends.
Alien Insurer an insurer whose principal office and
domiciled
location is outside the country.
Broker Represents themselves and the insured
(i.e., the
client or customer).
Captive Insurer An issuer established and owned by a
parent firm
for the purpose of insuring the parent firm's
loss
exposure.
Certificate of Authority A license issued to an insurer by a
department of
insurance (or equivalent state agency),
which
authorizes that company to conduct
insurance
business in that particular state.
, Claims Department Is responsible for processing,
investigating, and
paying claims.
Divisible Surplus The amount of earnings paid to
policyowners as
dividends after the insurance company
sets aside
funds required to cover reserves, operating
expenses, and general business purposes.
Domestic Insurer An insurer with its principal or home office
in a
state where it is authorized.
Foreign Insurer An insurer with its principal office or
domicile
location in a state different from the state it
is
transacting insurance business.
Fraternal Benefit Society Nonprofit benevolent organizations that
provide
insurance to its members.
