Chapter 2 (part 5) Flashcards
1
Q
What are the 2 types of insurance companies?
A
- Property insurance
2. Life insurance and casualty insurance
2
Q
What are the 4 ways life insurance companies get their funds?
A
- Whole life, term and group insurance policies.
- Annuities, pensions, group medical and dental care programs.
- policy loans and mortgage interest.
- Interest on securities and mortgages already owned.
3
Q
What are 7 products Life insurance companies provide?
A
- Insurance against loss of life
- Livelihood or health
- Disability insurance
- Term or whole life insurance
- Pension plans
- Registered retirement plans
- Annuities
4
Q
What are products Property and casualty insurance companies provide?
A
Loss of property, including home, auto and commercial business insurance.
5
Q
What is “underwriting” entail for an insurance company?
A
Underwriting is the business of evaluating risk an insurance company is willing to take from a client in return for insurance premiums.
6
Q
What act regulates insurance companies?
A
The insurance company act.
The act was established June 1, 1992.
7
Q
Through legislation what are insurance companies aloud to own?
A
Trust and loan companies and Schedule I banks.
