Divisible surplus - Study guides, Class notes & Summaries

NJ Health Insurance Exam (XCEL Solutions) Questions and Answers Graded A+ Why are dividends from a mutual insurer not subject to taxation? - Correct Answer ️️ - because dividends are considered to be a return of premium ABC insurance company transfers part of their risk to XYZ insurance company. This situation is called - Correct Answer ️️ -reinsurance A nonparticipating company is sometimes called a(n) - Correct Answer ️️ -stock insurer What is considered to be the primary r...

Iowa Insurance Exam Graded A+ Reserve ️funds held by a company to help fulfill future claims. Minimum Reserves are usually set by the state Department of Insurance Multi-line Insurer ️an insurance company or independent agent that provides a one-stop shop for businesses or individuals seeking coverage for all their insurance needs stock companies ️insurance companies owned and controlled by a group of stockholders whose investment in the company provides the safety margin neces...

Mass State Life Insurance Exam Graded A+ Which of the following describes a participating life insurance policy? ️A participating life policy is one in which the policyowner receives dividends deriving from the company's divisible surplus What type of reinsurance contract between two insurers involves an automatic sharing of the risks assumed? ️Under treaty reinsurance, each party automatically accepts specific percentages of the insurer's business. At what point must a life insur...

Xcel Life and Health Insurance What is the primary purpose of a rating service company such as A.M Best? - correct answer Determine financial strength of an insurance company What is considered to be the primary reason for buying life insurance? - correct answer Provide death benefits Which of the following is NOT considered advertising? - correct answer A rating from a rating service company, such as A.M. Best A plan in which an employer pays insurance benefits from a fund derived fro...

XCEL Solutions Practice Exam Questions and Answers Reserve - Correct Answer ️️ -funds held by the company to help future claims. minimum reserves are usually set by the state Department of Insurance. Multi-line insurer - Correct Answer ️️ -an insurance company or independent agent that provides a one-stop shop for businesses or individuals seeking coverage for all their insurance needs. For example, many large insurers offer individual policies for automobile, homeowner, long-term ...

NJ Health Insurance Exam (XCEL Solutions) Questions and Answers Graded A+ Why are dividends from a mutual insurer not subject to taxation? - Correct Answer ️️ - because dividends are considered to be a return of premium ABC insurance company transfers part of their risk to XYZ insurance company. This situation is called - Correct Answer ️️ -reinsurance A nonparticipating company is sometimes called a(n) - Correct Answer ️️ -stock insurer What is considered to be the primary r...

Acturarial Departments - Answer calculated policy rates, reserves, and dividends Alien Insurer - Answer Main office is located outside the US Admitted Insurer - Answer Receives certificate of authority from state and is allowed to conduct insurance business in that state Broker - Answer Represents themselves and then insurer Captive Insurer - Answer established and owned by a parent firm for the purpose of insuring the parent firms loss exposure Certificate of Authority ...

Life and Health Insurance License (Maryland) All Answers Correct "Maximum benefits" refers to the ️upper limit of the total lifetime benefits the insurance company will pay 1033 Waiver ️a personal convicted of a felony may apply for a ____ to transact insurance business. A clause that allows an insurer the right to terminate coverage at any anniversary date is called a(n) ️optional renewability clause A disability elimination period is best described as a ️time deductible A di...

Life Insurance Exam Prep Questions and Answers Rated A+ Primary purpose for a rating service company such as A.M best? To determine financial strength of an insurance company Primary reason for buying life insurance? Provide death benefits What is described as an insurers ability to make unpredictable payouts to its policy owners? Liquidity What is described as a plan in which an employer pays insurance benefits from a fund derived from the employers current revenue? Self-Funded Plan Which p...

XCEL CHAPTER 1 EXAM REVIEW | QUESTIONS & ANSWERS (VERIFIED) | LATEST UPDATE | GRADEDA+ A non-participating company is also called Correct Answer: Stock insurer Contract that involves one party which indemnifies another when a loss arises from an unknown event Correct Answer: Insurance policy A type of insurer that is owned by its policy owners is called Correct Answer: Mutual Why are dividends from a mutual insurer not subject to taxation? Correct Answer: Because dividends are con...