Which of the following statements regarding insurers is CORRECT?
A) A stock company that issues both participating and nonparticipating life insurance policies is classified as a full lines company.
B) The primary purpose of an insurance company that is organized as a stock insurer is to earn a profit for its stockholders.
C) If a life insurance company is owned by its policyowners, it is a stock company.
D) Mutual insurance companies sell insurance to insurers."
Ans: B) The primary purpose of an insurance company that is organized as a stock insurer is to earn a profit for its stockholders.
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Which question does variance analysis answer?
a. What costs did the business have for financing? b. What is the value of everything the business owns? c. How do our actual expenses compare to our budgeted expenses? d. From where does the cash originate?
Upon the issuance of a life insurance policy, an insurable interest must exist between
A) the agent and the applicant B) the insured and the beneficiary C) the applicant and the beneficiary D) the applicant and the insured"