basic principles of life and health insurance

Question 1

types of insurance companies.

commercial insurers

Answer 1

are in the business for selling insurance for a profit, offering many lines of insurance. are devided into ttwo main groups.

Question 2

types of insurance companies

stock companies

Answer 2

are known as non participating, policy holders do not participate in divedends.

Question 3

types of insurance companies

mutual companies

Answer 3

are known as participating insurers and participate in devidends, are not subject to taxes since devidends are considered a return of premium.

Question 4

mixed insurers

Answer 4

are considered both non par and participating.

Question 5

strong assesment mutual companies

Answer 5

are classified by the way they charge premiums.

Question 6

a pure assessment mutual company

Answer 6

operates on loss sharing by group members. no premiums are payable in advance. instead, each memberr is asssessed an individual porion of losses occured.