What is considered to be the primary reason for buying life insurance?
Provide death benefits
An insurer's ability to make unpredictable payouts to policyowners is called
liquidity
Which of the following is NOT considered advertising?
A rating from a rating service company, such as A.M. Best
A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called
A self-funded plan
A nonparticipating policy will
not pay dividends
What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus?
participating life insurance policy
Why are dividends from a mutual insurer not subject to taxation?
Because dividends are considered to be a return of premium
A type of insurer that is owned by its policyowners is called
mutual
A life insurance company has transferred some of its risk to another insurer. The insurer assuming the risk is called the
reinsurer
A nonparticipating company is sometimes called a(n)
stock insurer