Divisible surplus - Study guides, Class notes & Summaries

Reserves - ANSWER Funds held by the company to fullfull future claims. Funds are set by the state department of insurance. Multi-line Insurer - ANSWER An insurance company selling more than one line of insurance. (Ex. Home, auto, health, etc) Stock Companies - ANSWER Owned and controlled by stockholders, whose investment set the safety margin. Guaranteed fixed premiums. Nonparticipating policies. nonparticipating policy - ANSWER Insurance under which the insured is not entitled to share...

Under a traditional IRA, interest is taxed: Only if withdrawn prior to age 59 1/2 According to the capital gains rate Upon distribution During the accumulation phase - ANSWER-Upon distribution Which of these statements concerning Traditional IRAs is CORRECT? Earnings are not taxable when withdrawn Earnings are taxable when withdrawn Contribution are never tax deductible Contributions are always made by the employer - ANSWER-Earnings are taxable when withdrawn Wh...

PA Accident and Health Insurance Questions and Answers Graded A+ Why are dividends from a mutual insurer not subject to taxation? because dividends are considered to be a return of premium what kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus? participating life insurance policy A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called a self funded plan An insurer's clai...

Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Under the McCarran-Ferguson Act, what is the minimum penalty for this? - $10,000 or up to one year in jail A type of insurer that is owned by its policyowners is called - Mutual insurer What is considered to be the primary reason for buying life insurance? - Provide death benefits Fraternal Benefit Society has each of the following characteristics EXCEPT - Exist for profit (...

NJ Life Producer Exam with Complete Solutions Which of the following enables a life policy to be replaced with another life policy and results in the postponement of the tax consequences. - Answer-Section 1035 exchange An insurance company needs to obtain personal information from a third party concerning an applicant. Which law do all insurers and their producers need to comply with? - Answer-Fair Credit Reporting Act Which of the following is true concerning the proceeds of a life ins...

NJ Life Insurance Exam Questions with Correct Answers Which of the following will NOT be included in the buyer's guide? a) Explanation on how to choose the amount and type of insurance b) Basic information about life insurance policies c) Specific information about the policy d) Comparison of policy costs - Answer-c) Specific information about the policy All of the following statements about mutual insurance companies are correct EXCEPT a) Mutual companies issue policies referred to ...

Life & Health Insurance Exam With Complete Solutions Graded A+ Actuarial Department calculates policy rates, reserves, and dividends Alien Insurer is an insurer whose principal office and domiciled location is outside US Admitted Insurer an admitted or authorized insurer is an insurer who has received a certification of authority from a state's department of insurance authorizing them to conduct insurance business in that state broker a broker represents themselves and the i...

Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Under the McCarran-Ferguson Act, what is the minimum penalty for this? - $10,000 or up to one year in jail A type of insurer that is owned by its policyowners is called - Mutual insurer What is considered to be the primary reason for buying life insurance? - Provide death benefits Fraternal Benefit Society has each of the following characteristics EXCEPT - Exist for profit (...

Wisconsin Health & Accident Insurance ( Latest 2023/2024 ) Latest Questions With Complete Grade A Answers 1. Health Insurance Answer: A general way of describing insurance against loss through sickness or accidental bodily injury.This term applies to many different types of insurance, not just medical that pays for doctor and hospital visits. Examples: - Accident & Health - Accident & Sickness - Sickness & Accident - Disability insurance 2. Disability (Income) Insurance Answer: A...

Iowa Life Insurance Exam Questions and Answers Already Passed purpose of life insurance pay a death benefit to beneficiaries when the insured dies life insurance for personal use death benefit serves to replace the insured's future loss income and pay expenses that occur upon death, living benefits Group insurance vs. individual -covers many non-related people -less expensive per person group insurance eligibility -group cannot be formed for the express purpose of purchasing it -employers -l...