Multiple Choice
Group life insurance policies are generally written as which type of accounting policy?
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1. Introduction to Accounting
Types of Accounting
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Which type of insurer is owned by its policyowners?
A
Mutual insurer
B
Reciprocal insurer
C
Lloyd's association
D
Stock insurer
Verified step by step guidance1
Understand the different types of insurers and their ownership structures. Insurers can be categorized based on who owns them and how they operate.
Learn about mutual insurers: These are insurance companies owned by their policyholders. Profits are typically returned to policyholders in the form of dividends or reduced premiums.
Compare mutual insurers to stock insurers: Stock insurers are owned by shareholders, not policyholders. Their primary goal is to generate profits for shareholders.
Examine reciprocal insurers: These are groups of individuals or organizations that exchange insurance contracts and share risks. They are managed by an attorney-in-fact but are not owned by policyholders.
Understand Lloyd's associations: These are not insurers themselves but rather marketplaces where members underwrite insurance. Ownership is not tied to policyholders.
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