The Insurance Company

Question 1

What provinces are government insurers?

Answer 1

British Columbia, Manitoba, Saskatchewan, and Quebec

Question 2

3 groups of insurance companies

Answer 2

Organizations, co-operative organizations, government organizations

Question 3

A number of individuals subscribe and pay capital to form a legal entity known as a corporation

Answer 3

Stock Company

Question 4

Subscriber to sock companies

Answer 4

Shareholders

Question 5

Monetary interest in the assets and hope to realize a reasonable profit on their investment

Answer 5

Stock Company

Question 6

Premium reserves (3)

Answer 6

Unearned premium
Outstanding loss
Incurred but not reported (IBNR)

Question 7

The portion of premium which has not been earned

Answer 7

Unearned Premium

Question 8

Funds set aside to pay for losses which have been incurred (happened) but not yet paid

Answer 8

Outstanding loss reserve

Question 9

refers to losses which occurred but have not been reported or recorded by the insurer

Answer 9

Incurred but not yet reported (IBNR)

Question 10

How do insurance companies make money?

Answer 10

They invest the funds

Question 11

How do stock companies make money

Answer 11

underwriting gains and investents

Question 12

Insurance market

Answer 12

Lloyd’s

Question 13

Insurance companies owned by their policyholders

Answer 13

Mutuals

Question 14

Profits earned are:

Answer 14

Retained by the company
Given back as dividends
Used to reduce premium

Question 15

Government insurers

Answer 15

British Columbia
Manitoba
Saskatchewan
Quebec

Question 16

Refers to a class of risk or in other words a subject of insurane

Answer 16

Line

Question 17

Insuring a number of automobiles for one owner

Answer 17

fleet

Question 18

A chance of loss

Answer 18

Risk

Question 19

a request for insurance, it could be oral or written

Answer 19

Application

Question 20

The damage of a loss particularly fire, arising from what happens to another risk close by

Answer 20

Exposure

Question 21

The amount an insurer retains for its own account not including reinsurance

Answer 21

Retention

Question 22

The process whereby an insurer may share its risk with another insurer by paying to this insurer a portion of the premium it receives for the risk

Answer 22

Reinsurance

Question 23

people who deal with claims settlements

Answer 23

adjusters

Question 24

Assets less liabilities

Answer 24

Net worth

Question 25

All of the company’s wealth

Answer 25

Assets

Question 26

Money owed

Answer 26

Liabilities

Question 27

Premiums after commission has been deducted

Answer 27

New premiums