Property and Casualty Insurance Practice Exam

Which of the following is considered a multiline insurance company?

1. A company offering only auto insurance.

2. A company providing both life and health insurance.

3. A company that specializes in property insurance.

4. A company that offers only liability insurance.

The correct answer is: A company providing both life and health insurance.

A multiline insurance company is defined as an organization that provides multiple types of insurance products across various categories. In this case, the company that offers both life and health insurance exemplifies a multiline insurer because it is not limited to a single line of coverage but rather spans different sectors of insurance needs. By covering both life and health, it addresses the financial protection needs related to both mortality and health-related expenses, thereby encapsulating a broader scope of insurance services. The other options focus on single lines of insurance. A company offering only auto insurance is specialized and does not encompass multiple types. A company that specializes in property insurance is also limited to a single area and does not provide the range necessary to be considered multiline. Lastly, a company that offers only liability insurance similarly restricts itself to a specific area of coverage, lacking the variety needed to fit the multiline classification.