1. Basic Principles of Life and Health Insurance and Annuities

Question 1

Actuarial Department

Answer 1

The Actuarial Department calculates policy rates, reserves, and dividends.e

Question 2

Alien Insurer

Answer 2

An Alien Insurer in the United States is an insurer whose principal office and domiciled location is outside the country.

Question 3

Admitted Insurer

Answer 3

An admitted or authorized insurer is an insurer who has received a certificate of authority from the state’s department of insurance authorizing them to conduct insurance business in that state.

Question 4

Broker

Answer 4

A Broker represents themselves and the insured (i.e., the client or customer)

Question 5

Captive Insurer

Answer 5

A Captive Insurer is an issuer established and owned by a parent firm for the purpose of insuring the parent firm’s loss exposure.