To Qualify for a License, an Insurer Must Fulfill Certain

question 38

Multiple Choice

To qualify for a license, an insurer must fulfill certain financial requirements.Identify the correct statement about the financial requirements for a license.

• A)Mutual insurers must have a specified amount of capital and surplus.
• B)Stock insurers must have a minimum amount of surplus only because they do not show "capital" in their balance sheets.
• C)Policyholders are owners in stock companies.
• D)Mutual companies do not have stock.
• E)A company offering only one line of insurance must have more capital (and/or surplus) than a multiple-line insurer.

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Definitions:

Official Court Form

A standardized document issued by the court system or jurisdiction to be used in legal proceedings.

Itinerant Seller

A seller who moves from place to place to sell goods or services, often without a fixed retail location.

Fixed Place of Business

A specific location where a company conducts its operations and business activities on a regular basis.

Legislation

Laws that have been enacted by a legislative body, such as a parliament or congress.