Dave and Meagan Philips borrowed $150,000 from Fifth National Bank to help fund the purchase of a new home. The home serves as collateral for the loan. Fifth National has an insurable interest in the home based on

Grace is a life insurance agent. She is attempting to sell a large life insurance policy, but the prospective purchaser is having second thoughts. To persuade the prospective purchaser, Grace said, “I will earn a $1,000 commission if you buy this policy. I’ll give you $500 of my commission if you buy the policy.” In most states, what illegal sales practice will Grace be guilty of if she splits her commission with the purchaser?

Which of the following statements about the licensing of insurance companies is (are) true?I.A new capital stock insurer must meet minimum capital and surplus requirements, which vary by state and line of insurance.II.The licensing requirements for insurance companies are less stringent than those imposed on most other types of firms.

Which of the following statements about Lloyd’s of London is true?

Which of the following statements is true about fraternal insurers?

Sarah owns a property and liability insurance agency. She is authorized to represent several insurance companies and she is compensated by commissions. Sarah’s agency owns the expiration rights to the business she sells. Sarah is a(n)

A shortcoming of state regulation of insurance according to Congressional committees and the General Accounting Office is that state regulation

Why are some mutual insurers referred to as “assessment mutuals”?

Which of the following statements about state insurance guaranty funds is (are) true?I.They limit the amount that policyholders can collect if an insurer becomes insolvent.II.They are usually funded by general revenues of the states.

An insurance company chartered in another country has been licensed to operate in your state. In your state, the insurer would be considered a(n)