CA LIFE EXAM - PSI - Questions and Answers Latest 2024

A participating company is also referred to as which type of insurer? - CORRECT ANSWER-Mutual insurer An insurer owned by its policyholders, is called a - CORRECT ANSWER-Mutual insurer What is a participating life insurance policy? - CORRECT ANSWER-Contract that allows the policyowner to receive a share of surplus in the form of policy dividends An insurer enter into a contract with a third-party to ensure itself against losses from insurance policies it issues. What is this agreement called? - CORRECT ANSWER-Reinsurance John owns an insurance company that gives him the right to share and then sure surplus. What kind of policy is this? - CORRECT ANSWER-Participating Which of the following is not a characteristic of reinsurance? - CORRECT ANSWER-Increases the unearned premium reserved Which of the following is not a benefit of insurance? - CORRECT ANSWER-Losses due to fraud are eliminated When a mutual insurer becomes a stock company, the process is called - CORRECT ANSWER-Demutualization Which of the following is a contract that involves one party which indemnifies another one a loss arises from an unknown event? - CORRECT ANSWER-Insurance policy Which of the following is an insurer established by a parent company's loss exposure's? - CORRECT ANSWER-Captive insurers Which of the following is not considered to be a definition for the term "loss"? - CORRECT ANSWER