Author: Anonymous

One method through which reinsurance is provided is through an organization of insurers that underwrites insurance on a joint basis. Through the organization, financial capacity is available for large commercial risks. This reinsurance arrangement is a(n)

ABC Insurance Company would like to purchase a bank. For many years, ABC was not permitted under federal law to enter into banking operations. Which of the following legislative acts eliminated the prohibition that prevented banks, insurers, and investment firms from entering into one another’s markets?

The policyholders’ surplus of an insurer is defined as the difference between its

Antonio is a claims adjustor for LMN Insurance Company. After the insurer is notified that there has been a loss, Antonio meets with the insured. The first step in the claims process that Antonio should follow is to

Which of the following statements about the regulation of insurance company investments is (are) true?I.The purpose of regulating insurance company investments is to prevent insurers from making unsound investments which could threaten their solvency.II.Life insurers can invest an unlimited amount of their assets in common stocks.

Jim would like to start a business raising thoroughbred racehorses. Obtaining insurance on the horses is a key concern, and he was dismayed to learn that none of the insurers authorized to operate in his state offer this specialty insurance. What is the name of the intermediary that Jim can use to place this coverage with an insurer not admitted to his state?

The major argument in favor of an optional federal charter for insurers is that

Which of the following is an advantage of federal regulation of insurance over state regulation of insurance?

When a fraternal insurer began operations, it asked each member, regardless of age, to pay $20 per month to the fraternal’s group life insurance plan. In exchange, each member received the same amount of life insurance. Soon younger members of the group began to drop out when they realized their premiums were subsidizing a group with a higher chance of loss. Which important underwriting principle was violated in this case?

Kim purchased a one-year property insurance policy. She agreed to pay half the premium when she bought the coverage, and the other half six months later. If Kim fails to pay the second premium, the insurer cannot sue her for the premium because insurance contracts are