reserves
the accounting measurement of an insurer's future obligations to its policy holders
stock companies
owned by stockholder, who get paid a share of the company's profit through dividends. NON_PAR
mutual companies
no stockholders, policy holders own the company. get paid through dividends. par- companies.
reinsurer
an arrangement by which an insurance company transfers or sells a portion of the risk to a reinsurance company.
fair credit reporting act
provides individuals privacy protection and fair and accurate credit reporting
Which of the following requires insurers to disclose when an applicant's consumer or credit history is being investigated
1970 - Fair Credit Reporting Act
NAIC
National Association of Insurance Commissioners. and organization composed of insurance commissioners from all 50 states
state guaranty association
protect policy owners in the event of any insurance company going out of business, becoming insolvent, or the in ability to pay claims
lloyds of london
and association formed to underwrite and issue insurance like coverage on certain items and areas that might otherwise be uninsurable
At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act?
Upon completion of the application
Who elects the governing body of a mutual insurance company?
policyholders
An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the
Fair Credit Reporting Act
Which of these describe a participating life insurance policy?
Policyowners are entitled to receive dividends
What type of reinsurance contract involves two companies automatically sharing their risk exposure?
Treaty
The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future obligations to its policyholders is called
reserves
Which of these require an offer, acceptance, and consideration?
Contract