XCEL Chapter 1 Exam Review Questions
And Answers Rated A+.
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
Reinsurer - correct answer. A life insurance company has transferred some of its risk
to another insurer. The insurer assuming the risk is called the
Marketing - correct answer. One important function of an insurance company is to
identify and sell to potential customers. Which of these BEST describes this function?
Participating policy - correct answer. John owns an insurance policy that gives him the
right to share in the insurer's surplus. What kind of policy is this?
Non-participating policy - correct answer. Does not participate in paying dividends
Participating life insurance policy - correct answer. Contract that allows the policy
owner to receive a share of surplus in the form of policy dividends
And Answers Rated A+.
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
Reinsurer - correct answer. A life insurance company has transferred some of its risk
to another insurer. The insurer assuming the risk is called the
Marketing - correct answer. One important function of an insurance company is to
identify and sell to potential customers. Which of these BEST describes this function?
Participating policy - correct answer. John owns an insurance policy that gives him the
right to share in the insurer's surplus. What kind of policy is this?
Non-participating policy - correct answer. Does not participate in paying dividends
Participating life insurance policy - correct answer. Contract that allows the policy
owner to receive a share of surplus in the form of policy dividends
