Types of Insurance

Question 1

A stock insurance company is owned by

Answer 1

stockholders

Question 2

stockholders receive return of profit by

Answer 2

taxable stock dividens

Question 3

stockholders direct the company by assigning

Answer 3

directors and officers

Question 4

A mutual insurance company is owned by

Answer 4

policyholders

Question 5

policyholders elect who to manage the company

Answer 5

Board of trustees and Directors

Question 6

profits are returned to policyholders as

Answer 6

nontaxable dividens

Question 7

what does non-assessable mean

Answer 7

it means they cannot charge members a pro rata share of loss and expense at the end of the policy period

Question 8

what is demutualization?

Answer 8

is a process whereby a mutual insurer becomes a stock company

Question 9

Fraternal Organizations are primirly what that engaged in charitable and benevolent activities that provide insurance, primirly what insurance?

Answer 9

social organization that provides primirily life insurance to its members

Question 10

Membership is typically drawn from members of a given ..in fraternal benefits societies

Answer 10

lodge, order or society

Question 11

fraternal benefits societies are ususally organized on a what basis

Answer 11

non-profit basis

Question 12

reciprocal insurance company is a … owned insurer whose main activity is …

Answer 12

is a group owned insurer whose main activity is risk sharing

Question 13

A reciprocal insurer is unincorporated and is an aggregation of what (3 types) and are usually do what on one another?

Answer 13

individuals, firms, and business corporations that exchange insurance on one another.

Question 14

A Riciprocal Insurance Company , each member is known as a

Answer 14

subscri

Question 15

reciprocal insurance companies are run through a

Answer 15

attorney in fact

Question 16

what can be made in a reciprocal insurance if th premiums collected are unsufficient to pay losses?

Answer 16

an assessment of additional premium can be made

Question 17

Risk Retention Groups are what type of insurer?

Answer 17

group-owned insurer

Question 18

they are an insurance company licensed in at least one state that is owned by their policyholders, who are also their shareholders? Give examples

Answer 18

Risk Retention Groups, theme parks, go-carts tracks, water slides, etc

Question 19

What is ERISA

Answer 19

employer retirement income security act

Question 20

the three domiciles of insurers are __ __ and alien

Answer 20

domestic and foreign

Question 21

an authorized insurer is also known as a(n)

Answer 21

admitted insurer

Question 22

A(n) ___ insurer is one which is not allowed to conduct business in the state of CA

Answer 22

non-admitted insurer

Question 23

who may be an insurer?

Answer 23

any person capable of making a contract such as; person, association, organization, corporation,

Question 24

what are the potential consequences to consumers, of being issued a policy by a non- admitted insurer?

Answer 24

the insurer is not subject to the financial solvency regulation and enforcement that applys to the california licensed insurers and the insurer does not participate in insurance guaranty funds created by th California law, therefore the funds will not pay the insures claim

Question 25

what is direct mail?

Answer 25

a marketing system that does not use an agent, usually advertises to the public through mail, internet, newspaper, magazines, ads.