Globe Life Training

Question 1

What is the Actuarial Department responsible for?

Answer 1

Calculating policy rates, reserves, and dividends

Question 2

Who is an Adjuster?

Answer 2

A person who investigates claims and arranges for them to be settled or denied

Question 3

Define Alien Insurer.

Answer 3

An insurer whose principal office and domicile location is outside the United States

Question 4

What is an Admitted Insurer?

Answer 4

An insurer that has received a certificate of authority from a state’s department of insurance

Question 5

What role does an Agent play in insurance?

Answer 5

Authorized to solicit, sell, and transact insurance coverage for specific providers

Question 6

What is another term for an Authorized Insurer?

Answer 6

Admitted insurer

Question 7

What defines a Broker in insurance?

Answer 7

A person who represents himself and the insured but cannot bind coverage

Question 8

What is a Captive Insurer?

Answer 8

An insurer established and owned by a parent firm to insure its loss exposure

Question 9

What is a Certificate of Authority?

Answer 9

A license issued to an insurer by a state insurance department

Question 10

What does the Claims Department do?

Answer 10

Responsible for processing, investigating, and paying claims

Question 11

Define Divisible Surplus.

Answer 11

Earnings paid to policy owners as dividends after setting aside required funds

Question 12

What is a Domestic Insurer?

Answer 12

An insurer with its principal or home office in the state it’s authorized

Question 13

What is a Foreign Insurer?

Answer 13

An insurer whose principal office is in a different state from where it transacts business

Question 14

What is a Fraternal Benefit Society?

Answer 14

A non-profit organization that provides insurance to its members

Question 15

Define Independent Insurance Agency.

Answer 15

An agency that can represent multiple insurance companies through contracts

Question 16

What is the definition of Insurance?

Answer 16

The transfer of risk through the pooling or accumulation of funds

Question 17

Who is considered the Insured?

Answer 17

The customer who receives insurance protection under a policy

Question 18

What is an Insurer?

Answer 18

An insurance company

Question 19

What is Lloyds of London?

Answer 19

A group of individuals and companies that underwrite unusual insurance policies

Question 20

What is the role of the Marketing Division?

Answer 20

Responsible for acquiring prospective applicants through advertising

Question 21

Define Monoline Insurer.

Answer 21

An insurance carrier that only sells one line of insurance

Question 22

What is a Multi-Line Insurer?

Answer 22

An insurer providing coverage for all insurance needs, such as auto, home, and health

Question 23

What characterizes a Mutual Insurance Company?

Answer 23

No capital stock, owned by policy owners, issues participating insurance

Question 24

What is a Non-Admitted (Unauthorized) Insurer?

Answer 24

An insurer without a certificate of authority from a state’s department

Question 25

What is a Nonparticipating Policy?

Answer 25

A policy that doesn’t allow owners to participate in dividends

Question 26

Define Participating Policy.

Answer 26

An insurance policy that pays dividends to policy owners

Question 27

What is a Personal Producing General Agency (PPGA)?

Answer 27

An agency that represents specific insurers but doesn’t supervise agents

Question 28

Who is a Policy owner?

Answer 28

The person responsible for premium payments and ownership rights of the contract

Question 29

What is a Private (Commercial) Insurer?

Answer 29

An insurer owned by private citizens or groups offering insurance lines

Question 30

What is a Producer in insurance?

Answer 30

An individual licensed to sell or transact insurance in a state

Question 31

Who is the Proposed Insured?

Answer 31

The person whose life will be covered by an insurance policy

Question 32

What does a Public Adjuster do?

Answer 32

Acts on behalf of a consumer settling an insurance claim

Question 33

Define Reciprocal Insurer.

Answer 33

An unincorporated organization where members insure one another

Question 34

What is Reinsurance?

Answer 34

Acceptance by reinsurers of a portion of the risk underwritten by another insurer

Question 35

Who is a Reinsurer?

Answer 35

A company providing financial protection to insurance companies

Question 36

What is a Risk Retention Group?

Answer 36

A group-owned liability insurer spreading liability risks among members

Question 37

What is the Sales Department responsible for?

Answer 37

Acquiring clients through one-on-one meetings for application completion

Question 38

What defines a Self-Insurer?

Answer 38

A company that covers potential losses with a self-funded plan

Question 39

Who are Service Representatives?

Answer 39

Customer service employees not required to obtain a license

Question 40

What is the role of Solicitors?

Answer 40

Individuals who schedule sales meetings between consumers and producers

Question 41

Define Stock Insurance Company.

Answer 41

An insurance company owned by stockholders providing nonparticipating policies

Question 42

What is Surplus Lines Insurance?

Answer 42

Non-traditional insurance for substandard risks, available from surplus lines insurers

Question 43

What is an Unauthorized Insurer?

Answer 43

A non-admitted insurer

Question 44

What does the Underwriting Department do?

Answer 44

Responsible for reviewing, approving, or declining applications and assigning risk classifications