Author: Anonymous

Jim would like to start a business raising thoroughbred racehorses. Obtaining insurance on the horses is a key concern, and he was dismayed to learn that none of the insurers authorized to operate in his state offer this specialty insurance. What is the name of the intermediary that Jim can use to place this coverage with an insurer not admitted to his state?

Why are some mutual insurers referred to as “assessment mutuals”?

When a fraternal insurer began operations, it asked each member, regardless of age, to pay $20 per month to the fraternal’s group life insurance plan. In exchange, each member received the same amount of life insurance. Soon younger members of the group began to drop out when they realized their premiums were subsidizing a group with a higher chance of loss. Which important underwriting principle was violated in this case?

Which of the following is an advantage of federal regulation of insurance over state regulation of insurance?

Immunity that results from antibodies that pass the placenta from mother to fetus is called ________ immunity.

Which of the following statements about personal producing general agents is (are) true?I.They often have the option of recruiting and training sub-agents. II.They are independent agents who produce substantial amounts of life insurance with one insurer.

What is the practical effect of an insurance contract being a contract of adhesion?

Kim purchased a one-year property insurance policy. She agreed to pay half the premium when she bought the coverage, and the other half six months later. If Kim fails to pay the second premium, the insurer cannot sue her for the premium because insurance contracts are

The leaders of a religious group decided to start a life insurance organization to insure members of the religious group. The insurer will operate as a nonprofit organization, thus receiving favorable tax treatment. The insurer formed will be a

When must an insurable interest legally exist in life insurance?