LLQP (Life Licence Qualification Program) Practice Exam · Question
A life insurance company that issues participating policies, where policyholders may receive dividends, and is owned by its policyholders, is best categorized as what type of insurer?
A mutual insurance company is owned by its policyholders, who receive any profits in the form of dividends. This contrasts with stock companies, which are owned
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Question: A life insurance company that issues participating policies, where policyholders may receive dividends, and is owned by its policyholders, is best categorized as what type of insurer?
Answer options: ✅ Mutual company
- Stock company
- Fraternal benefit society
- Reinsurer
Correct answer: Mutual company
Explanation: A mutual insurance company is owned by its policyholders, who receive any profits in the form of dividends. This contrasts with stock companies, which are owned by shareholders.
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- A life insurance policy that offers lifelong coverage, a guaranteed death benefit, and a savings component tha
- Group benefits in Canada commonly include:
- Sarah, a 35-year-old marketing professional in Ontario, purchases a participating whole life insurance policy
- Mark, a 45-year-old business owner in British Columbia, has a Universal Life policy with a Level Cost of Insur
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