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