Basic Concepts

Question 1

Name the 3 types of private insurance____,___,___

Answer 1

Commercial , stock, and mutural insurance

Question 2

In the ____ the shareholders make a profit and they are non participating.

Answer 2

Stockholders

Question 3

In the ___ companies theyare owned by the policyholders

Answer 3

Mutual

Question 4

___ are never guaranteed.

Answer 4

Dividends

Question 5

Nonprofit religous,ethnic, provides sole to their members_______

Answer 5

fraternal benefit societies

Question 6

When other isurance companies transfer a portion of their risk to another company_____

Answer 6

Reinsures

Question 7

The company transferring the risk is the ___

Answer 7

Ceding company

Question 8

The company assuming the risk is the

Answer 8

reinsurer

Question 9

Government insurance is paid for by __

Answer 9

taxes

Question 10

An example of government insurance is

Answer 10

sss, service, veterans tri- care, medicare, medicare

Question 11

__ is not a nin insurance company they underwrite insurance like coverage

Answer 11

Lloyds of London

Question 12

____ represents a number of insurance companies under separate contractual agreements

Answer 12

Independent Agency

Question 13

____ law states that the federal govt has the authority but they would not exercise the right

Answer 13

1945 Mc Carren vs.Fegerson act

Question 14

___ is the grade that he the financial strength and the stability of the company

Answer 14

Indpendent rating servises

Question 15

A contract is __,__,__

Answer 15

unilateral, aleatory, and adhesion

Question 16

A policy of adhesion can only be modified by the ___.

Answer 16

insurance company

Question 17

When a 3rd policy ownership is involved applications, who also happens to be the stated primary the stated promary is called to have__

Answer 17

insurable interst in the proposed

Question 18

___ statement quantifies to be true consideration to promise to be true.

Answer 18

warrenty

Question 19

When must a insurance exit fora life insurance contract to be valid____

Answer 19

inception fo the contact

Question 20

Insuance contracts are known as ___b/c certaiin conditional or act must occur before any claim can be paid

Answer 20

conditional

Question 21

A contract where one part accepts of rejects the terms is ___

Answer 21

adhesion

Question 22

Allows one to bypass interest laws__

Answer 22

investor orginal life- inusrance

Question 23

Insurable interst only need to exsist at the _____ of the applicatin NOT at death.

Answer 23

time

Question 24

Warrienties are_____

Answer 24

guaranteed to be true

Question 25

STOLI violates___ of the contract.

Answer 25

the leagal purpose which is interest requirment