prin of insurance chpt 5

What is the primary objective of a stock insurer?

• To provide dividends to policyholders

• To increase the value of stock and pay dividends

• To offer assessable policies

• To reduce stockholder losses

Who owns a mutual insurer?

• Stockholders

• Policy owners

• Government

• Private investors

What is demutualization in the context of mutual insurers?

• The process of merging two companies

• The conversion of a mutual company into a stock insurer

• The creation of a new insurance policy

• The acquisition of a holding company

What is Lloyd’s of London primarily known for?

• Being a stock insurer

• Being a mutual insurer

• Being the world’s leading insurance market

• Being a reciprocal exchange

What is a reciprocal exchange?

• A corporation owned by stockholders

• An unincorporated organization where insurance is exchanged among members

• A mutual insurer owned by policy owners

• A holding company controlling an authorized user

What is a captive insurer?

• An insurer owned by a parent firm for insuring the parent firm's loss exposures

• An insurer that operates independently of any parent firm

• An insurer that provides coverage for multiple unrelated firms

• An insurer that is publicly traded on the stock market

Which type of insurer is owned by one parent?

• Single parent, or pure, captive

• Association captive

• Mutual insurer

• Reciprocal insurer

What does Savings Bank Life Insurance refer to?

• Life insurance sold by mutual savings banks

• Life insurance sold by private insurers

• Life insurance sold by government agencies

• Life insurance sold by credit unions

What role do managed care plans play in healthcare?

• They aid in the financing of healthcare and influence healthcare decisions

• They provide only emergency healthcare services

• They are solely responsible for healthcare legislation

• They offer insurance for non-healthcare related services

Which of the following is NOT part of the financial services industry?

• Commercial banks

• Life and health insurers

• Property and casualty insurers

• Retail stores