Life Insurance Basics
What is a participating life insurance policy?
Answer and explanation
Answer: D. A participating policy shares in the insurer's divisible surplus through dividends, which are a return of overcharge rather than a guaranteed return. Underwriting, insurer type, and settlement elections are separate matters.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, participating versus nonparticipating
More life insurance basics questions
- May a New York producer point to the Life Insurance Company Guaranty Corporation as a reason to buy?
- On what must a recommendation under Regulation 187 be based?
- Two clients need the same monthly survivor income. Why does the capital retention approach require a larger death benefit than capital liquidation?
- Two partners agree that on the death of either, the survivor will buy the deceased's share. How does life insurance support that?
- Under FCRA, if an insurer orders an investigative consumer report involving personal interviews regarding an applicant's character and lifestyle, when must written notice be sent to the applicant?
- What determines the effective date of coverage where no premium accompanies the application?
621 New York questions like this one.
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