1. buying insurance from a mutual may not always be desiirable because:

a) a mutual insurance is trying to make a profit for the stockholders

b) you may be paying for other insured's losses

c) premiums may be greater than that of a stock company if the mutual is improperly managed

d) the officers of the company are not responsible to the policy holders

2. which of the following statements is false?

a) assessment mutuals provide primarily fire and windstorm insurance

b) a stock insurance company is a profit-making venture in both life and property insurance

c) dividents are paid to stockholders of stock companies

d) in stock companies, non-insured stockholders bear none of the risk of loss

3. all the following statements are true concerning mutual insurance companies except:

a) they may pay dividends

b) they are owned by their policyholders

c) they are legally organized as perpetual partnerships

d) they are nonprofit

4. in general, all of the following statements about Lloyd's of london are true except:

a) memebers have unlimited personal liability

b) individual members "names" cooperate in groups known as syndicates

c) if a syndicate is unable to pay its portion loss, the insured has the right to collect its unpaid portion from Lloyd's of london

d) Lloyd's is not as preeminent in the insurance marketplace today as it once was

5. a mutual insurance company might be charachterized by all of the following except:

a) policyholder ownership

b) non-profit operations

c) taxable dividends to owners

d) assessable policies