Chapter 2 (part 5)

Question 1

What are the 2 types of insurance companies?

Answer 1

1. Property insurance

2. Life insurance and casualty insurance

Question 2

What are the 4 ways life insurance companies get their funds?

Answer 2

1. Whole life, term and group insurance policies.
2. Annuities, pensions, group medical and dental care programs.
3. policy loans and mortgage interest.
4. Interest on securities and mortgages already owned.

Question 3

What are 7 products Life insurance companies provide?

Answer 3

1. Insurance against loss of life
2. Livelihood or health
3. Disability insurance
4. Term or whole life insurance
5. Pension plans
6. Registered retirement plans
7. Annuities

Question 4

What are products Property and casualty insurance companies provide?

Answer 4

Loss of property, including home, auto and commercial business insurance.

Question 5

What is “underwriting” entail for an insurance company?

Answer 5

Underwriting is the business of evaluating risk an insurance company is willing to take from a client in return for insurance premiums.

Question 6

What act regulates insurance companies?

Answer 6

The insurance company act.

The act was established June 1, 1992.

Question 7

Through legislation what are insurance companies aloud to own?

Answer 7

Trust and loan companies and Schedule I banks.