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Insurance 1.B

Unit1

QuestionAnswer
An insurance company incorporated in Wisconsin and conducting business in Wisconsin is known as a domestic company. What kind of company are they considered if they do business in Minnesota? Foreign
True or false in regards to stock companies A stock company is a participating company. False
What do insurance companies use to help predict how many losses will occur in a group or class of individuals.? The law of large numbers
States require companies to have a license to sell insurance in the state. This license is called A certificate of authority
True or false one of the requirements of an insurable pure risk is that the risk must be catastrophic for the insurance company False
True or false The number of clients is a contributing factor in classifying insurers according to their financial strength. False
Created by: ashblake4
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