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Insurance Institute C11 Exam - Topic 10 Question 2 Discussion

[Insurance Documents and Processes -- Subscription Policies]Which type of policy must be signed by a member of each participating insurer?
C) Subscription
A) Prescription
B) All-inclusive
D) Subrogation

Insurance Institute C11 Exam - Topic 10 Question 2 Discussion

Actual exam question for Insurance Institute's C11 exam
Question #: 2
Topic #: 10
[All C11 Questions]

[Insurance Documents and Processes -- Subscription Policies]

Which type of policy must be signed by a member of each participating insurer?

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Suggested Answer: C

A subscription policy is used when a single insurance risk is too large for one insurer to assume alone. Multiple insurers participate in the policy, each taking a percentage of the risk. Because each insurer is directly responsible for its portion, the policy must be signed by each participating insurer, acknowledging its share of liability.

Option A, prescription, refers to legal limitation periods.

Option B, all-inclusive, is not a recognized type of policy requiring multiple insurer signatures.

Option D, subrogation, is a legal right---not a policy type.

Only the subscription policy requires signatures from all insurers involved, making C correct.


Contribute your Thoughts:

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Tony
6 hours ago
It's definitely C) Subscription.
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Beckie
5 days ago
I definitely remember that subscription policies involve multiple insurers, so I believe the answer is C) Subscription.
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Kasandra
11 days ago
I’m a bit lost on this one. I feel like we had a question about types of policies, but I can’t recall the specifics.
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Freeman
16 days ago
I remember discussing subscription policies and how they require signatures from each insurer. So, I’d go with C) Subscription.
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Lisbeth
21 days ago
I think the answer might be C) Subscription, but I'm not entirely sure. We covered something similar in class.
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