General Insurance
Which need is customarily met by a government insurer rather than a private one?
Answer and explanation
Answer: B. Government programs handle exposures that private carriers cannot price or spread, and they are typically compulsory and funded by taxation or payroll contributions. Individual life, group life and annuities are ordinary private market products.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, private and government insurers
More general insurance questions
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- What makes an insurer admitted in a given state?
- What must be shown to establish fraud, beyond an untrue statement of material fact?
- What ordinarily distinguishes a government insurer from a private one?
- What problem does the term adverse selection describe?
- When a policyowner stops paying premiums, allowing a term life policy to lapse, the insurer cannot take legal action to force the owner to continue making payments. Which characteristic of insurance contracts does this limitation reflect?
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