Mass State Life Insurance updated 2025 with verified solutions | 2025
LATEST UPDATED
Which of the following describes a participating life insurance policy? - (answers)A participating
life policy is one in which the policyowner receives dividends deriving from the company's
divisible surplus
What type of reinsurance contract between two insurers involves an automatic sharing of the
risks assumed? - (answers)Under treaty reinsurance, each party automatically accepts specific
percentages of the insurer's business.
At what point must a life insurance applicant be informed of their rights that fall under the Fair
Credit Reporting Act? - (answers)Upon completion of the application
The State Guaranty Association guarantees - (answers)that a claim will be paid if an admitted
insurer becomes insolvent
Dividends from a mutual insurance company are paid to whom? - (answers)Policyholders
你是想要一篇“眼睛容易阅读的”
What is considered the accounting measurement of an insurance company's future obligations to
中文文章，还是一篇关于“眼睛”
its policyowners? - (answers)reserves
主题的中文文章？
A group-owned insurance company that is formed to assume and spread the liability risks of its
members is known as a - (answers)risk retention group
Which of the following is a syndicate established by a group of insurers to share underwriting
duties? - (answers)Lloyd's organization
An agent's authority to bind an insurer to an insurance contract may be granted in the -
(answers)agent's contract and the insurance company's appointment
Dividends from a stock insurance company are normally sent to - (answers)shareholders
,Law of Large numbers - (answers)-insurance is based on the sharing of risks among a large
group of people
-states that the larger the number of people, the more predictable the actual losses will be
-companies use this data to calculate rates
Speculative risk - (answers)-involves opportunity for either loss or gain
-not covered by insurance companies
pure risk - (answers)-a situation that can only result in a loss, there is no opportunity for financial
gain
-only type of risk that is insurable
treatment of risk through: avoidance - (answers)simply avoiding as many risks as possible
-effective but not always practical
treatment of risk through- reduction - (answers)since we cannot avoid risk entirely we often
attempt to lessen the possibility of a loss by taking acting to reduce the risk
你是想要一篇“眼睛容易阅读的”
- 中文文章，还是一篇关于“眼睛”
主题的中文文章？
treatment of risk through- sharing - (answers)when a group of individuals or businesses with
similar exposures share the losses that occur within that group
-reciprocal insurance exchange is a formal risk sharing arrangement
treatment of risk through- retention - (answers)also known as self-insurance: when individuals
have the financial ability to fund losses by themselves when they occur
treatment of risk through- transfer - (answers)the most effective way to handle risk
- risk is transferred to another party - insurance is the most common method of transferring risk
from an individual or group to an insurance company
,elements of insurable risk - (answers)-must be due to chance
-cannot be catastrophic
-must be randomly selected
• Loss exposure to be insured must be large - Insurance company must be able to predict
loss ( based on law of large numbers)
- Loss must be definite and measurable - Time, place, amount, and when payable
nature of insurance - (answers)-to provide financial protection against losses that may be
incurred due to a chance happening or event such as death, illness, or accident
-protection is provided through an insurance policy which is a simple device for accumulating
funds to meet these uncertain losses
ABC Company is attempting to minimize the severity of potential losses within its company. The
company is engaged in risk - (answers)Risk reduction can reduce the chance that a particular loss
will occur, or it can reduce the amount of a potential loss if it occurs.
How can an insurance company minimize exposure to loss? - (answers)Many insurers are able to
minimize exposure to loss by你是想要一篇“眼睛容易阅读的”
reinsuring risks.
中文文章，还是一篇关于“眼睛”
主题的中文文章？
For insurance purposes, similar objects which are exposed to the same group of perils are
referred to as - (answers)Similar objects of insurance that are exposed to the same group of perils
are called homogeneous exposure units.
Which of the following can be defined as "the potential for loss"? - (answers)risk
An insurer has a contractual agreement which transfers a portion of its risk exposure to another
insurer. What type of contractual arrangement is this? - (answers)Reinsurance contracts accept a
portion of the risk underwritten by another insurer who has contracted for the entire coverage
amount.
Which of the following can be defined as a cause of a loss? - (answers)peril
, What type of risk involves the potential for loss and the possibility for gain? -
(answers)speculative
Purchasing insurance is an example of risk - (answers)transference
A business becoming incorporated is an example of risk ____. - (answers)transfer
Which of the following is NOT an example of risk retention? - (answers)Not doing a business
deal after deciding it would be too risky
legal contract must have: offer and acceptance - (answers)-an offer is made when the applicant
submits an application for insurance to the insurance company
-the offer is accepted after it has been approved by the insurance company's underwriters
legal contract must have: consideration - (answers)something of value that each party gives to
the other
-on part of insured: payment of premium
你是想要一篇“眼睛容易阅读的”
-on part of insurance company: promise to pay in event of loss
中文文章，还是一篇关于“眼睛”
主题的中文文章？
legal contract must have: legal purpose - (answers)-must be legal and not against public policy
-has legal purpose if contract has a insurable interests and the insured has provided written
consent
legal contract must have: competent parties - (answers)-all parties must be of legal competence
-must be of legal age, mentally capable of understanding the terms, and not under the influence
of drugs or alcohol
specifal features of insurance contracts: aleatory - (answers)there is not an equal exchange of
value
LATEST UPDATED
Which of the following describes a participating life insurance policy? - (answers)A participating
life policy is one in which the policyowner receives dividends deriving from the company's
divisible surplus
What type of reinsurance contract between two insurers involves an automatic sharing of the
risks assumed? - (answers)Under treaty reinsurance, each party automatically accepts specific
percentages of the insurer's business.
At what point must a life insurance applicant be informed of their rights that fall under the Fair
Credit Reporting Act? - (answers)Upon completion of the application
The State Guaranty Association guarantees - (answers)that a claim will be paid if an admitted
insurer becomes insolvent
Dividends from a mutual insurance company are paid to whom? - (answers)Policyholders
你是想要一篇“眼睛容易阅读的”
What is considered the accounting measurement of an insurance company's future obligations to
中文文章，还是一篇关于“眼睛”
its policyowners? - (answers)reserves
主题的中文文章？
A group-owned insurance company that is formed to assume and spread the liability risks of its
members is known as a - (answers)risk retention group
Which of the following is a syndicate established by a group of insurers to share underwriting
duties? - (answers)Lloyd's organization
An agent's authority to bind an insurer to an insurance contract may be granted in the -
(answers)agent's contract and the insurance company's appointment
Dividends from a stock insurance company are normally sent to - (answers)shareholders
,Law of Large numbers - (answers)-insurance is based on the sharing of risks among a large
group of people
-states that the larger the number of people, the more predictable the actual losses will be
-companies use this data to calculate rates
Speculative risk - (answers)-involves opportunity for either loss or gain
-not covered by insurance companies
pure risk - (answers)-a situation that can only result in a loss, there is no opportunity for financial
gain
-only type of risk that is insurable
treatment of risk through: avoidance - (answers)simply avoiding as many risks as possible
-effective but not always practical
treatment of risk through- reduction - (answers)since we cannot avoid risk entirely we often
attempt to lessen the possibility of a loss by taking acting to reduce the risk
你是想要一篇“眼睛容易阅读的”
- 中文文章，还是一篇关于“眼睛”
主题的中文文章？
treatment of risk through- sharing - (answers)when a group of individuals or businesses with
similar exposures share the losses that occur within that group
-reciprocal insurance exchange is a formal risk sharing arrangement
treatment of risk through- retention - (answers)also known as self-insurance: when individuals
have the financial ability to fund losses by themselves when they occur
treatment of risk through- transfer - (answers)the most effective way to handle risk
- risk is transferred to another party - insurance is the most common method of transferring risk
from an individual or group to an insurance company
,elements of insurable risk - (answers)-must be due to chance
-cannot be catastrophic
-must be randomly selected
• Loss exposure to be insured must be large - Insurance company must be able to predict
loss ( based on law of large numbers)
- Loss must be definite and measurable - Time, place, amount, and when payable
nature of insurance - (answers)-to provide financial protection against losses that may be
incurred due to a chance happening or event such as death, illness, or accident
-protection is provided through an insurance policy which is a simple device for accumulating
funds to meet these uncertain losses
ABC Company is attempting to minimize the severity of potential losses within its company. The
company is engaged in risk - (answers)Risk reduction can reduce the chance that a particular loss
will occur, or it can reduce the amount of a potential loss if it occurs.
How can an insurance company minimize exposure to loss? - (answers)Many insurers are able to
minimize exposure to loss by你是想要一篇“眼睛容易阅读的”
reinsuring risks.
中文文章，还是一篇关于“眼睛”
主题的中文文章？
For insurance purposes, similar objects which are exposed to the same group of perils are
referred to as - (answers)Similar objects of insurance that are exposed to the same group of perils
are called homogeneous exposure units.
Which of the following can be defined as "the potential for loss"? - (answers)risk
An insurer has a contractual agreement which transfers a portion of its risk exposure to another
insurer. What type of contractual arrangement is this? - (answers)Reinsurance contracts accept a
portion of the risk underwritten by another insurer who has contracted for the entire coverage
amount.
Which of the following can be defined as a cause of a loss? - (answers)peril
, What type of risk involves the potential for loss and the possibility for gain? -
(answers)speculative
Purchasing insurance is an example of risk - (answers)transference
A business becoming incorporated is an example of risk ____. - (answers)transfer
Which of the following is NOT an example of risk retention? - (answers)Not doing a business
deal after deciding it would be too risky
legal contract must have: offer and acceptance - (answers)-an offer is made when the applicant
submits an application for insurance to the insurance company
-the offer is accepted after it has been approved by the insurance company's underwriters
legal contract must have: consideration - (answers)something of value that each party gives to
the other
-on part of insured: payment of premium
你是想要一篇“眼睛容易阅读的”
-on part of insurance company: promise to pay in event of loss
中文文章，还是一篇关于“眼睛”
主题的中文文章？
legal contract must have: legal purpose - (answers)-must be legal and not against public policy
-has legal purpose if contract has a insurable interests and the insured has provided written
consent
legal contract must have: competent parties - (answers)-all parties must be of legal competence
-must be of legal age, mentally capable of understanding the terms, and not under the influence
of drugs or alcohol
specifal features of insurance contracts: aleatory - (answers)there is not an equal exchange of
value
