BASIC PRINCIPLES OF LIFE AND HEALTH
INSURANCE CHAP EXAM REVIEW 1 WITH
CORRECT ANSWERS.
What is a participating life insurance policy? - CorreCt Answers -Contract
that allows the policyowner to receive a share of surplus in the form of
policy dividends
Which of the following is a contract that involves one party which
indemnifies another when a loss arises from an unknown event? - CorreCt
Answers -Insurance policy
Which of the following statements regarding a life insurance policy
dividend is TRUE? - CorreCt Answers -It is the distribution of excess of
funds accumulated by the insurer on participating policies
A type of insurer that is owned by its policyowners is called - CorreCt
Answers -mutual
Which of the following is an insurer established by a parent company for
the purpose of insuring the parent company's loss exposures? - CorreCt
Answers -Captive insurer
Why are dividends from a mutual insurer not subject to taxation? - CorreCt
Answers -Because dividends are considered to be a return of premium
INSURANCE CHAP EXAM REVIEW 1 WITH
CORRECT ANSWERS.
What is a participating life insurance policy? - CorreCt Answers -Contract
that allows the policyowner to receive a share of surplus in the form of
policy dividends
Which of the following is a contract that involves one party which
indemnifies another when a loss arises from an unknown event? - CorreCt
Answers -Insurance policy
Which of the following statements regarding a life insurance policy
dividend is TRUE? - CorreCt Answers -It is the distribution of excess of
funds accumulated by the insurer on participating policies
A type of insurer that is owned by its policyowners is called - CorreCt
Answers -mutual
Which of the following is an insurer established by a parent company for
the purpose of insuring the parent company's loss exposures? - CorreCt
Answers -Captive insurer
Why are dividends from a mutual insurer not subject to taxation? - CorreCt
Answers -Because dividends are considered to be a return of premium
