The Required Contribution from Surviving Insurers to Protect Policyholders of Failed

question 50

True/False

The required contribution from surviving insurers to protect policyholders of failed insurance companies usually is on a pro rata amount based on the relative asset size of the surviving company.

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Definitions:

Customer's Bank Account

The bank account of a customer, used for transactions between the customer and a company.

Restrictive Endorsement

An endorsement on a check or other financial instrument limiting the way the funds can be used or restricting further endorsement.

Endorsed

Endorsed refers to the approval or support, often given formally or officially to signify agreement with or sanction of something.

Full Endorsement

A signature on the back of a negotiable instrument, such as a check, that specifies the person to whom the instrument is to be paid, transferring ownership.