NC Life Insurance Exam Prep Chapter I Questions With 100% Correct Answers 2024

NC Life Insurance Exam Prep Chapter I Questions With 100% Correct Answers 2024 Liquidity - answerindicates a company's ability to make unpredictable payouts to policy owners Insurance - answerevolved to produce a practical solution to economic uncertainties and losses Reserves - answerthe accounting measurement of an insurer's future obligations to its policyholders. They are classified as liabilities on the insurance company's accounting statements since they must be settled at a future date. Annuities - answerprovide income by making a series of payments to the annuitant for a specific period of time or for life Health Insurance - answerevolved from scientific principles to provide funds for medical expenses due to sickness or injury and to cover loss of income during a disability. multi-line insurers. - answerCompanies that sell more than one line of insurance Stock insurance company - answera private organization, organized and incorporated under state laws for the purpose of making a profit for its stockholders A stock company - answerreferred to as a nonparticipating company because policyholders do not participate in dividends resulting from stock ownership. policy dividends - answerrepresent a "refund" of the portion of premium that remains after the company has set aside the necessary reserves and has made deductions for claims and expenses and can also include a share in the company's investment, mortality, and operating profits.