Rhode Island Insurance Exam Spring with Complete Solution

Rhode Island Insurance Exam Spring with Complete Solution the role of insurance is to transfer the risk of financial loss from an individual or business to an insurance company organized and incorporated under state law owned by stockholders who get a paid share of the company's profit through dividends. also referred to as a nonparticipating or non-par bc policy holder do not participate in paid dividends stock insurance company organized and incorporated under state law. but they have no stockholders. instead, the policyholders own the company. owners get paid a share of the companies profits through dividends. participating or par companies bc policy owners do not participate in paid dividends mutual insurer companies process of a stock company being converted into a mutual company mutualization process of a mutual company being converted into a stock company demutualization an association formed to underwrite and issue insurance like coverage on certain items and areas that might otherwise be uninsurable Lloyds of London are a specialized branch of the insurance industry that insurers other insurance company's risk. *is an arrangement by which an insurance company transfers or sells a portion of the risk to a reinsurance company reinsurers the insurance company transferring the risk ceding company industrial insurance sold by home service or debit insurance companies home service insurers when 3rd party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have insurable interest in the proposed insured which is considered a statement that is assured to be true in every respect warranty which best describes a warranty statement guaranteed to be true which of these is not considered to be an element of an insurance contract negotiating a life insurance policy would be considered contract without? insurable interest all of the following (bilateral unilateral aleatory adhesion) are considered to be typical characteristics describing the nature of an insurance contract except bilateral in an insurance contract the insurer is the only party who makes a legally enforceable promise what kind of contract is this unilateral Taking receipt of premiums and holding them for the insurance company is an example of fiduciary responsibility a policy of adhesion can only be modified by whom the insurance company In regards to representations or warranties, which of these statements is TRUE? if material to the risk, false representation will void a policy Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called representations life and health insurance policies are unilateral contracts