WFG Final Exam (Complete And Verified Study material) (86pages) LEARNEXAMS

John owns an insurance policy that gives him the right to share in the insurer's surplus. What kind of policy is this? -Non-participating -Contributory -Participating -Surplus Participating policies give the policyowner the right to share in the insurer's surplus. Which of the following is NOT a benefit of insurance? -Reduces the uncertainty of loss exposures -Losses due to fraud are eliminated -Makes a loss whole again -Source of investment funds is NOT a benefit of insurance. What is a participating life insurance policy? -Contract that allows the policyowner to receive a share of surplus in the form of policy dividends -Agreement that allows two or more beneficiaries to share in the death benefit -Agreement that insures two or more lives -Contract that gives beneficiaries the right to participate in any dividends A participating life insurance policy is defined as a contract that allows the policyowner to receive a share of surplus in the form of policy dividends. Which of the following is a type of insurance where an insurer transfers loss exposures from policies written for its insureds? -Treaty insurance -Mutual insurance -Reinsurance -Captive insurance