General Insurance PrinciplesPregunta 188 de 474
The structural difference between a stock insurer and a mutual insurer is that a mutual:
a.may write only life insurance and not property coverage
b.must be non-profit and may not retain any earnings at all
c.is owned by its policyholders, who may receive dividends
d.is owned by shareholders who elect the board of directors
Explicación
In a mutual, the policyholders are the owners, they elect the board, and any dividend declared is a return of unused premium rather than a payment on invested capital. The shareholder answer describes a stock insurer, whose dividends go to investors. Mutuals write property and casualty lines widely and do retain earnings as surplus to support their writings.
Practica las 474 preguntas gratis — sin registro.
Own the complete Personal Lines Insurance Producer guide — PDF + EPUB, $19.99 →
Preguntas relacionadas de este tema
- When coverage is placed by a broker rather than by an appointed agent, the broker legally represents:
- A producer collects a client's premium and parks it in his personal checking account for two weeks before forwarding it. This violates:
- A producer binds homeowners coverage on Monday and the insurer declines the application on Friday. During those days the applicant was:
- A reciprocal insurance exchange is distinguished from other insurers by being:
- In an insurance course, Lloyd's of London is best described as:
- In the jurisdiction where a policy is being written, an admitted insurer is one that:
Última revisión: · proceso editorial
Equipo de PrepPass · Verificado con California Personal Lines Insurance License Exam · Cómo revisamos