XCEL Chapter 1 Exam Review Graded A+
Stock insurer
️ A non-participating company is also called a stock insurer.
Insurance policy
️ A contract that involves one party indemnifying another when a loss results from an unknown
event.
Mutual
️ A type of insurer that is owned b...
✔️ A non-participating company is also called a stock insurer.
Insurance policy
✔️ A contract that involves one party indemnifying another when a loss results from an unknown
event.
Mutual
✔️ A type of insurer that is owned by its policyholders is called a mutual insurer.
Why are dividends from a mutual insurer not subject to taxation?
✔️ Because dividends are considered a return of premium.
Participating life insurance policy
✔️ A life insurance policy issued by a mutual insurer that provides a return of divisible surplus.
Exist for profit
✔️ A Fraternal Benefit Society does NOT exist for profit.
Reinsurance
✔️ A type of insurance where an insurer transfers loss exposures from policies written for its insureds.
What is a true statement regarding a life insurance policy dividend?
✔️ It is the distribution of excess funds accumulated by the insurer on participating policies.
Mutual Insurer
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