Accident And Health Insurance Exam (All 100% Correct Answers) 2024 A+ Graded

What is the accounting measurement of an insurance company's future obligations to its policyowners? Credits Reserves Surplus account Retention fund {Ans: Reserves}which reinsurance contract between two insurers involves an automatic sharing of the risks assumed? Arbitrage reinsurance Facultative reinsurance Excess reinsurance Treaty reinsurance {Ans: Treaty reinsurance}How are benefit payments from individually-owned medical expense policies treated for tax purposes? Exempt from income taxes. Taxed as ordinary income. Taxed as a dividend. Tax credit given for amount of benefit payment. {Ans: Exempt from income taxes.}In a guaranteed renewable disability income contract, the insurance company reserves the right to change premiums after the policy is issued if: The Consumer Price Index has increased by the same percentage The premium for all insureds is changed by the same percentage The insured's occupation has changed The premium change applies to all insureds in a specific class or classes {Ans: The premium change applies to all insureds in a specific class or classes}XYZ Insurance Company gives direct authority to its producers to sell insurance through an agency contract, but nothing is stated regarding the collection of premiums. Which authority grants the producer the right to collect premiums? Implied authority Apparent authority Express