Florida Health and Life Chapter 1 Review Questions and Correct Answers

Florida Health and Life Chapter 1 Review Questions and Correct Answers Reserve funds held by the company to help fulfill future claims Multi-lane insurer an insurance company/independent agent that provides a one-stop shop for businesses or individuals seeking coverage for all their insurance needs. Stock Companies insurance companies owned and controlled by a group of stockholders whose investment in the company provides the safety margin necessary in issuance of guaranteed, fixed premium, nonparticipating policies Nonparticipating plan Insurance under which the insured is not entitled to share in the divisible surplus of the company. Mutual Companies Owned by the policy owners and issue participating policies. Participating plan a plan under which the policy owner receives shares (commonly called dividends) of the divisible surplus of the company. Reinsurer a company that provides financial protection to insurance companies. Handle risks that are too large Fraternal Benefit Societies nonprofit benevolent organization that provide insurance to its members. Producers or agents who only sell within their society, do not receive commission, and stay under a specific premium threshold often have less stringent licensing requirements. Fair Credit Reporting Act requires an individual to be informed if she is being investigated by an inspection company. It also outlines the sharing and impact of such information and requires individuals to be notified prior to being investigated. Buyer's Guide A booklet that describes insurance policies and concepts, and provides general information to help an applicant make an informed decision. Policy Summary a summary of the terms of an insurance policy, including the conditions, coverage limitations, and premiums. Policy summaries are often used with life insurance, long-term care insurance, and annuities. National association of insurance commissioners (NAIC) Organization made up of individual state insurance commissioners whose purpose is to promote uniformity in regulation by drafting model laws and regulations