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ABC Insurance Company would like to purchase a bank. For many years, ABC was not permitted under federal law to enter into banking operations. Which of the following legislative acts eliminated the prohibition that prevented banks, insurers, and investment firms from entering into one another’s markets?

Sarah owns a property and liability insurance agency. She is authorized to represent several insurance companies and she is compensated by commissions. Sarah’s agency owns the expiration rights to the business she sells. Sarah is a(n)

Which of the following statements about reciprocal exchanges is (are) true?I.Reciprocal exchanges usually specialize in health insurance.II.Reciprocal exchanges are unincorporated mutual insurance companies.

Which of the following statements is true regarding the information systems functional area of an insurance company?I.Computers and information systems are able to perform some tasks that previously were performed directly by employees. II.Information systems can speed the processing of policies by insurers.

Which of the following statements about the regulation of insurance company investments is (are) true?I.The purpose of regulating insurance company investments is to prevent insurers from making unsound investments which could threaten their solvency.II.Life insurers can invest an unlimited amount of their assets in common stocks.

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

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?

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

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?

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