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BUSFIN 3300 Exam 3 Questions with Correct Answers.
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BUSFIN 3300 Exam 3 Questions with Correct Answers.
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BUSFIN 3300 Exam 3 Questions with CorrectAnswers
Financial Modernization Act of 1999 (Gramm-Leach-Biley) Correct
Answer-What drove insurers to become much more diversified?
Mergers Correct Answer-Why has the number of life insurers, and in
particular mutual life insurers, declined significantly?
Financial Holding Company (FHC) Correct Answer-an umbrella
organization that can own subsidiaries involved in different parts of the
financial industry (similar to a bank holding company)
Repeal of Glass-Steagall Act (this act separated commercial and
investment banking by a single bank) Correct Answer-What allowed
banks, insurers, and securities firms to affiliate with each other and start
offering each other's products?
1. Products offered
2. Legal form of ownership
3. Method of distribution
4. Place of incorporation
5. Licensing status Correct Answer-What are the 5 ways to classify an
insurer?
Stock Insurer Correct Answer-a corporation owned by stockholders
,Earn profit for stockholders by increasing the value of the stock or
paying dividends Correct Answer-What is the objective of a stock
insurer?
Mutual Insurer Correct Answer-a corporation owned by the
policyholders
1. Advance Premium Mutual
2. Assessment Mutual
3. Fraternal Insurer Correct Answer-What are the three main types of
mutual insurers?
Advance Premium Mutual Correct Answer-A mutual insurer who is
owned by the policyowners; there are no stockholders, and the insurer
does not issue assessable policies
Assessment Mutual Correct Answer-A mutual insurer who has the right
to assess policyowners an additional amount if the insurer's financial
operations are unfavorable
Fraternal Insurer Correct Answer-a mutual insurer that provides life and
health insurance to members of a social or religious organization
1. Must operate through a lodge system
, 2. Only members can buy the insurance Correct Answer-What are the
two requirements to fraternal insurance?
Demutilization Correct Answer-the conversion of a mutual insurer into a
stock insurer.
Holding Company Correct Answer-a company whose primary business
is owning a controlling share of stock in other companies
Lloyd's of London Correct Answer-not an insurer, but a society of
members who underwrite insurance in syndicates
Reciprocal Exchange Correct Answer-An unincorporated organization
in which insurance is exchanged among the members (called
subscribers)
Blue Cross and Blue Shield Plans Correct Answer-nonprofit, community
oriented plans that cover hospital services, physicians' and surgeons'
fees, and other medical services
Anthem, Inc. Correct Answer-The largest provider of health insurance in
the U.S. and the largest for-profit organization within the Blue Cross
Blue Shield Association
Highmark Correct Answer-Not-for-profit Blue Cross Blue Shield health
care company that also operates several for-profit subsidiaries
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