XCEL Chapter 1 Exam Review 2024 Questions and Answers

XCEL Chapter 1 Exam Review 2024 Questions and Answers Stock insurer - Correct Answer ️️ -A non-participating company is also called Insurance policy - Correct Answer ️️ -Contract that involves one party which indemnifies another when a loss arises from an unknown event Mutual - Correct Answer ️️ -A type of insurer that is owned by its policy owners is called Because dividends are considered to be a return of premium - Correct Answer ️️ -Why are dividends from a mutual insurer not subject to taxation? Participating life insurance policy - Correct Answer ️️ -Life insurance policy issued by a mutual insurer provides a return of divisible surplus Exist for profit - Correct Answer ️️ -Fraternal Benefit Society does NOT Reinsurance - Correct Answer ️️ -Type of insurance where an insurer transfers loss exposures from policies written for its insurers It is the distribution of excess of funds accumulated by the insurer on participating policies - Correct Answer ️️ -What is a true statement regarding a life insurance policy dividend? Mutual Insurer - Correct Answer ️️ -Insurer owned by its policyholders