CA LIFE EXAM - PSI QUESTIONS WITH COMPLETE SOLUTIONS

A participating company is also referred to as which type of insurer? - ANSWER-Mutual insurer An insurer owned by its policyholders, is called a - ANSWER-Mutual insurer What is a participating life insurance policy? - ANSWER-Contract that allows the policyowner to receive a share of surplus in the form of policy dividends An insurer enter into a contract with a third-party to ensure itself against losses from insurance policies it issues. What is this agreement called? - ANSWER-Reinsurance John owns an insurance company that gives him the right to share and then sure surplus. What kind of policy is this? - ANSWER-Participating Which of the following is not a characteristic of reinsurance? - ANSWER-Increases the unearned premium reserved Which of the following is not a benefit of insurance? - ANSWER-Losses due to fraud are eliminated When a mutual insurer becomes a stock company, the process is called - ANSWER-Demutualization Which of the following is a contract that involves one party which indemnifies another one a loss arises from an unknown event? - ANSWER-Insurance policy Which of the following is an insurer established by a parent company's loss exposure's? - ANSWER-Captive insurers