Chapter 1

Question 1

Who elects the governing body of a mutual insurance company

Answer 1

Policyholders

Question 2

What year was the McCarran-Ferguson Act enabled

Answer 2

1945

Question 3

A group owned insurance company that is formed to assume and spread the liability risks of its members is know as a:

Answer 3

risk retention group

Question 4

what is the name of the law that requires insurers to disclose information gathering practices and where the information was obtained

Answer 4

fair credit reporting act

Question 5

The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future obligations to its policyholders is called

Answer 5

reserves

Question 5

which of these describe a participating insurance policy

Answer 5

policyowners are entitles to receive dividends

Question 5

A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of its members is known as

Answer 5

a fraternal benefit society