Which of the following statements about mutual insurers is true?
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Cathy just started a job with XYZ Manufacturing Company. She…
Cathy just started a job with XYZ Manufacturing Company. She attended an orientation and was given a packet providing information about the various employee benefits XYZ offers. One item in the packet was a booklet and application form from an auto insurer. The insurer offers lower premiums to XYZ employees. The insurer’s plan for selling individually-underwritten auto insurance to employees of XYZ Manufacturing Company is called
When must an insurable interest legally exist in property in…
When must an insurable interest legally exist in property insurance for an insured to receive payment for a loss from the insurer?
Which of the following statements about Lloyds of London (ar…
Which of the following statements about Lloyds of London (are) true? I.The majority of the business underwritten by Lloyds of London is for unusual risks, such as valuable race horses and professional athletes. II.Lloyds of London is a group of underwriters who underwrite insurance, not an insurance company.
Which of the following statements about the licensing of ins…
Which of the following statements about the licensing of insurance companies is (are) true?I.A new capital stock insurer must meet minimum capital and surplus requirements, which vary by state and line of insurance.II.The licensing requirements for insurance companies are less stringent than those imposed on most other types of firms.
One method through which reinsurance is provided is through…
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 man…
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 d…
The policyholders’ surplus of an insurer is defined as the difference between its
Antonio is a claims adjustor for LMN Insurance Company. Afte…
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 in…
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.