CT Health Insurance Exam Questions
And Answers {100% Correct} Latest
Update!!!
Actuarial Department CORRECT ANSWERS calculates policy rates, reserves, and
dividends.
Alien Insurer CORRECT ANSWERS in the United States is an insurer whose principal
office and domiciled location is outside the country.
Broker CORRECT ANSWERS represents themselves and the insured (i.e. the client or
customer)
Captive Insurer CORRECT ANSWERS an insurer established and owned by a parent
firm for the purpose of insuring the parent firm's loss exposure. Agents who are this,
represent only one insurance company.
Certificate Insurer CORRECT ANSWERS an insurer established and owned by a parent
firm for the purpose of insuring the parent firm's loss exposure.
Certificate of Authority CORRECT ANSWERS a license issued to an insurer by a
department of insurance (or equivalent state agency), which authorized that company to
conduct insurance business in that particular state.
Claims Department CORRECT ANSWERS A department which is responsible for
processing, investigating and paying claims
Divisible surplus CORRECT ANSWERS the amount of earnings paid to policy owners
as dividends after the insurance company sets aside funds required to cover reserves,
operating expenses, and general business purposes.
Domestic Insurer CORRECT ANSWERS an insurer with its principal or home office in a
state where it is authorized.
Foreign Insurer CORRECT ANSWERS an insurer with its principal office or domicile
location in a state different from the state it is transacting insurance business.
Fraternal Benefit Society CORRECT ANSWERS nonprofit benevolent organizations
that provide insurance to its members.
Industrial Insurer CORRECT ANSWERS makes up a specialized branch of the industry,
primarily providing policies with small face amounts with weekly premiums. Other
names for industrial insurers include home service or debit insurers.
,Insurance CORRECT ANSWERS The transfer of risk through the pooling or
accumulation of funds.
Insured CORRECT ANSWERS the customer receiving insurance protection under an
insurance policy
Lloyds of London CORRECT ANSWERS not an insurer, but a group of individuals and
companies that underwrite unusual insurance.
Multi-line insurer CORRECT ANSWERS an insurance company or independent agent
that provides a one-stop-shop for businesses or individuals seeking coverage for all
their insurance needs. For example, many large insurers offer individual policies for
automobile, homeowner, long-term care, life, and health insurance needs.
Mutual Insurance Company CORRECT ANSWERS insurance companies characterized
by having no capital stock, being owned by its policy owners, and usually issue
participating insurance.
Non-admitted Insurer CORRECT ANSWERS an insurer who has not received a
certificate of authority from a state's department of insurance authorizing them to
conduct insurance business in that state.
Nonparticipating policy CORRECT ANSWERS typically issued by stock companies, do
not allow policy-owners to participate in dividends or electing the board of directors.
Participating Plan CORRECT ANSWERS an insurance policy under which the policy
owners share the company's earnings through receipt of dividends and also elect the
company's board of directors.
Private (Commercial) Insurer CORRECT ANSWERS companies owned by private
citizens or groups that offer one or more insurance lines. Commercial insurers are NOT
government-owned.
Reciprocal Insurer CORRECT ANSWERS an unincorporated organization in which all
members insure one another.
Reinsurance CORRECT ANSWERS the acceptance by one or more insurers, called
reinsurers, of a portion of the risk underwritten by another insurer who has contracted
for the entire coverage
Reinsurer CORRECT ANSWERS a company that provides financial protection to
insurance companies. Reinsurers handle risks that are too large for insurance
companies to handle on their own and make it possible for insurers to obtain more
business than they would otherwise be able to.
,Risk Retention Group CORRECT ANSWERS a group-owned liability insurer which
assumes and spreads product liability and other forms of commercial liability risks
among its members.
Self-Insurers CORRECT ANSWERS establishes a self-funded plan to cover losses
instead of transferring the risk to an insurance company.
Stock Insurance Company CORRECT ANSWERS an insurance company owned and
controlled by a group of stockholders (or shareholders) whose investment in the
compnay provides the saftey margin necessary in the insurance of guaranteed, fixed
premium, nonparticipating policies.
Surplus Lines Insurance CORRECT ANSWERS is nontraditional insurance only
available from a surplus lines insurer. They offer coverage for substandard or unusual
risks not available through private or commercial carriers.
Underwriting Department CORRECT ANSWERS the department within an insurance
company responsible for reviewing applications, approving or deciding applications, and
assigning risk classifications.
Admitted Insurer CORRECT ANSWERS is an insurer who has received a certificate of
authority from a state's department.
Assessment Mutual Companies CORRECT ANSWERS Classified by the way in which
they charge premiums
Advance Premium Assessment Mutual CORRECT ANSWERS charges a premium in
advance at the beginning of the policy period.
Risk Retention Groups (RRG) and Risk Purchasing Groups (RPG) CORRECT
ANSWERS are group-owned liability that assume and spread product liability and other
forms of insurance to its members. This type of group is formed for the primary purpose
of retaining or pooling risks.
Service Providers CORRECT ANSWERS offer benefits to subscribers in return for the
payment of a premium. These services are packaged into various plans, and those who
purchase the plans are known as subscribers. Examples of this are Health Maintenance
Organizations (HMO) and Preferred Provider Organizations (PPO).
Examples of government insurers CORRECT ANSWERS National Flood Insurance
Program, Social Security, Medicare, Medicaid
Insurer Classification According to Domicile CORRECT ANSWERS A domestic insurer
has its principle or home office in a state where it is authorized
, Examples of Alien Insurers CORRECT ANSWERS Nippon Life of Tokyo, Japan, or Sun
Financial Services of Toronto, Canada
Insurer Classification According to Authorization CORRECT ANSWERS An insurer that
is allowed or authorized to conduct insurance business in a particular state is refered to
as an authorized or admitted insurer
Marketing or Sales Division CORRECT ANSWERS responsible for increasing the
number of prospective applicants, thereby increasing the number of insureds, through
various advertising mediums and 1-1 appointments with prospective buyers.
Career Agency System CORRECT ANSWERS Branches of major stock and mutual
insurance companies that are contracted to represent an insurer in a specific area.
Personal Producing General Agency System CORRECT ANSWERS Independent
agents (American Agency Systems) represent any number of insurance companies
through contractural agreements.
Other Methods of Selling Insurance CORRECT ANSWERS Direct selling, mass
marketing, internet, newspaper.
1968 Paul v. Virginia CORRECT ANSWERS Decided by the Supreme Court, involved
one state's attempt to regulate an insurance company domiciled in another state. The
supreme court sided against the insurance company, ruling that the sale and insurance
of insurance is not interstate commerce, thus upholding states' right to regulate
insurance.
1933 Glass-Stegall Act (Baking Act of 1933) CORRECT ANSWERS Separated
commerical and investment banking by barring common ownership of banks, insurance
companies, and securities firms.
Erected a regulatory wall between banks and non-financial companies
1944-United States v. Southeast Underwriters Association (SEUA) CORRECT
ANSWERS Decided by the Supreme Court again.In the SEUA case, the Supreme Court
ruled that the insurance industry is a form of interstate commerce. As such, the industry
is subject to a series of federal laws, many of which conflicted with existing state laws.It
did not affect state' power to regulate insurance, but it did nullify state laws and
conflicted with federal legislation.The decision shifted the balance of regulatory control
to the federal government
1945 McCarran-Ferguson Act CORRECT ANSWERS -Enacted by Congress, Public
Law 15.
-This law made is clear that the states' continued regulation of insurance was in the
public's best interest.
-It also made possible the application of federal antitrust laws to the extent that [the
insurance business] is not regulated by state law.
And Answers {100% Correct} Latest
Update!!!
Actuarial Department CORRECT ANSWERS calculates policy rates, reserves, and
dividends.
Alien Insurer CORRECT ANSWERS in the United States is an insurer whose principal
office and domiciled location is outside the country.
Broker CORRECT ANSWERS represents themselves and the insured (i.e. the client or
customer)
Captive Insurer CORRECT ANSWERS an insurer established and owned by a parent
firm for the purpose of insuring the parent firm's loss exposure. Agents who are this,
represent only one insurance company.
Certificate Insurer CORRECT ANSWERS an insurer established and owned by a parent
firm for the purpose of insuring the parent firm's loss exposure.
Certificate of Authority CORRECT ANSWERS a license issued to an insurer by a
department of insurance (or equivalent state agency), which authorized that company to
conduct insurance business in that particular state.
Claims Department CORRECT ANSWERS A department which is responsible for
processing, investigating and paying claims
Divisible surplus CORRECT ANSWERS the amount of earnings paid to policy owners
as dividends after the insurance company sets aside funds required to cover reserves,
operating expenses, and general business purposes.
Domestic Insurer CORRECT ANSWERS an insurer with its principal or home office in a
state where it is authorized.
Foreign Insurer CORRECT ANSWERS an insurer with its principal office or domicile
location in a state different from the state it is transacting insurance business.
Fraternal Benefit Society CORRECT ANSWERS nonprofit benevolent organizations
that provide insurance to its members.
Industrial Insurer CORRECT ANSWERS makes up a specialized branch of the industry,
primarily providing policies with small face amounts with weekly premiums. Other
names for industrial insurers include home service or debit insurers.
,Insurance CORRECT ANSWERS The transfer of risk through the pooling or
accumulation of funds.
Insured CORRECT ANSWERS the customer receiving insurance protection under an
insurance policy
Lloyds of London CORRECT ANSWERS not an insurer, but a group of individuals and
companies that underwrite unusual insurance.
Multi-line insurer CORRECT ANSWERS an insurance company or independent agent
that provides a one-stop-shop for businesses or individuals seeking coverage for all
their insurance needs. For example, many large insurers offer individual policies for
automobile, homeowner, long-term care, life, and health insurance needs.
Mutual Insurance Company CORRECT ANSWERS insurance companies characterized
by having no capital stock, being owned by its policy owners, and usually issue
participating insurance.
Non-admitted Insurer CORRECT ANSWERS an insurer who has not received a
certificate of authority from a state's department of insurance authorizing them to
conduct insurance business in that state.
Nonparticipating policy CORRECT ANSWERS typically issued by stock companies, do
not allow policy-owners to participate in dividends or electing the board of directors.
Participating Plan CORRECT ANSWERS an insurance policy under which the policy
owners share the company's earnings through receipt of dividends and also elect the
company's board of directors.
Private (Commercial) Insurer CORRECT ANSWERS companies owned by private
citizens or groups that offer one or more insurance lines. Commercial insurers are NOT
government-owned.
Reciprocal Insurer CORRECT ANSWERS an unincorporated organization in which all
members insure one another.
Reinsurance CORRECT ANSWERS the acceptance by one or more insurers, called
reinsurers, of a portion of the risk underwritten by another insurer who has contracted
for the entire coverage
Reinsurer CORRECT ANSWERS a company that provides financial protection to
insurance companies. Reinsurers handle risks that are too large for insurance
companies to handle on their own and make it possible for insurers to obtain more
business than they would otherwise be able to.
,Risk Retention Group CORRECT ANSWERS a group-owned liability insurer which
assumes and spreads product liability and other forms of commercial liability risks
among its members.
Self-Insurers CORRECT ANSWERS establishes a self-funded plan to cover losses
instead of transferring the risk to an insurance company.
Stock Insurance Company CORRECT ANSWERS an insurance company owned and
controlled by a group of stockholders (or shareholders) whose investment in the
compnay provides the saftey margin necessary in the insurance of guaranteed, fixed
premium, nonparticipating policies.
Surplus Lines Insurance CORRECT ANSWERS is nontraditional insurance only
available from a surplus lines insurer. They offer coverage for substandard or unusual
risks not available through private or commercial carriers.
Underwriting Department CORRECT ANSWERS the department within an insurance
company responsible for reviewing applications, approving or deciding applications, and
assigning risk classifications.
Admitted Insurer CORRECT ANSWERS is an insurer who has received a certificate of
authority from a state's department.
Assessment Mutual Companies CORRECT ANSWERS Classified by the way in which
they charge premiums
Advance Premium Assessment Mutual CORRECT ANSWERS charges a premium in
advance at the beginning of the policy period.
Risk Retention Groups (RRG) and Risk Purchasing Groups (RPG) CORRECT
ANSWERS are group-owned liability that assume and spread product liability and other
forms of insurance to its members. This type of group is formed for the primary purpose
of retaining or pooling risks.
Service Providers CORRECT ANSWERS offer benefits to subscribers in return for the
payment of a premium. These services are packaged into various plans, and those who
purchase the plans are known as subscribers. Examples of this are Health Maintenance
Organizations (HMO) and Preferred Provider Organizations (PPO).
Examples of government insurers CORRECT ANSWERS National Flood Insurance
Program, Social Security, Medicare, Medicaid
Insurer Classification According to Domicile CORRECT ANSWERS A domestic insurer
has its principle or home office in a state where it is authorized
, Examples of Alien Insurers CORRECT ANSWERS Nippon Life of Tokyo, Japan, or Sun
Financial Services of Toronto, Canada
Insurer Classification According to Authorization CORRECT ANSWERS An insurer that
is allowed or authorized to conduct insurance business in a particular state is refered to
as an authorized or admitted insurer
Marketing or Sales Division CORRECT ANSWERS responsible for increasing the
number of prospective applicants, thereby increasing the number of insureds, through
various advertising mediums and 1-1 appointments with prospective buyers.
Career Agency System CORRECT ANSWERS Branches of major stock and mutual
insurance companies that are contracted to represent an insurer in a specific area.
Personal Producing General Agency System CORRECT ANSWERS Independent
agents (American Agency Systems) represent any number of insurance companies
through contractural agreements.
Other Methods of Selling Insurance CORRECT ANSWERS Direct selling, mass
marketing, internet, newspaper.
1968 Paul v. Virginia CORRECT ANSWERS Decided by the Supreme Court, involved
one state's attempt to regulate an insurance company domiciled in another state. The
supreme court sided against the insurance company, ruling that the sale and insurance
of insurance is not interstate commerce, thus upholding states' right to regulate
insurance.
1933 Glass-Stegall Act (Baking Act of 1933) CORRECT ANSWERS Separated
commerical and investment banking by barring common ownership of banks, insurance
companies, and securities firms.
Erected a regulatory wall between banks and non-financial companies
1944-United States v. Southeast Underwriters Association (SEUA) CORRECT
ANSWERS Decided by the Supreme Court again.In the SEUA case, the Supreme Court
ruled that the insurance industry is a form of interstate commerce. As such, the industry
is subject to a series of federal laws, many of which conflicted with existing state laws.It
did not affect state' power to regulate insurance, but it did nullify state laws and
conflicted with federal legislation.The decision shifted the balance of regulatory control
to the federal government
1945 McCarran-Ferguson Act CORRECT ANSWERS -Enacted by Congress, Public
Law 15.
-This law made is clear that the states' continued regulation of insurance was in the
public's best interest.
-It also made possible the application of federal antitrust laws to the extent that [the
insurance business] is not regulated by state law.
