NORTH CAROLINA XCEL TESTING LIFE & HEALTH INSURANCE QUESTIONS WITH 100%
CORRECT SOLUTIONS | GUARANTEED SUCCESS.
Which of the following requires insurers to disclose when an applicant's consumer or credit history is
being investigated: - (answer)1970 - Fair Credit Reporting Act
What type of reinsurance contract involves two companies automatically sharing their risk exposure? -
(answer)Treaty
What is the name of the law that requires insurers to disclose information gathering practices and
where the information was obtained? - (answer)Fair Credit Reporting Act
Who elects the governing body of a mutual insurance company? - (answer)policyholders
The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future
obligations to its policyholders is called: - (answer)reserves
A group-owned insurance company that is formed to assume and spread the liability risks of its
members is known as a: - (answer)risk retention group
What year was the McCarran-Ferguson Act enacted? - (answer)1945
Which of these describe a participating life insurance policy? - (answer)Policyowners are entitled to
receive dividends
At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit
Reporting Act? - (answer)Upon completion of the application
A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of its
members is known as: - (answer)a fraternal benefit society
An insurance applicant MUST be informed of an investigation regarding his/her reputation and character
according to the: - (answer)Fair Credit Reporting Act
, NORTH CAROLINA XCEL TESTING LIFE & HEALTH INSURANCE QUESTIONS WITH 100%
CORRECT SOLUTIONS | GUARANTEED SUCCESS.
Which of the following consists of an offer, acceptance, and consideration? - (answer)Contract
Which of these is NOT a type of agent authority? - (answer)Principal
E and F are business partners. Each takes out a $500,000 life insurance policy on the other, naming
himself as primary beneficiary. E and F eventually terminate their business, and four months later E dies.
Although E was married with three children at the time of death, the primary beneficiary is still F.
However, an insurable interest no longer exists. Where will the proceeds from E's life insurance policy
be directed to? - (answer)F
All of the following are considered to be typical characteristics describing the nature of an insurance
contract, EXCEPT: - (answer)Bilateral
The part of a life insurance policy guaranteed to be true is called a(n): - (answer)warranty
A life insurance arrangement which circumvents insurable interest statutes is called: - (answer)Investor-
Originated Life Insurance
Taking receipt of premiums and holding them for the insurance company is an example of: -
(answer)Fiduciary responsibility
Which of these arrangements allows one to bypass insurable interest laws? - (answer)Investor-
Originated Life Insurance
Insurance contracts are known as ____ because certain future conditions or acts must occur before any
claims can be paid. - (answer)conditional
When third-party ownership is involved, applicants who also happen to be the stated primary
beneficiary are required to have: - (answer)insurable interest in the proposed insured
CORRECT SOLUTIONS | GUARANTEED SUCCESS.
Which of the following requires insurers to disclose when an applicant's consumer or credit history is
being investigated: - (answer)1970 - Fair Credit Reporting Act
What type of reinsurance contract involves two companies automatically sharing their risk exposure? -
(answer)Treaty
What is the name of the law that requires insurers to disclose information gathering practices and
where the information was obtained? - (answer)Fair Credit Reporting Act
Who elects the governing body of a mutual insurance company? - (answer)policyholders
The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future
obligations to its policyholders is called: - (answer)reserves
A group-owned insurance company that is formed to assume and spread the liability risks of its
members is known as a: - (answer)risk retention group
What year was the McCarran-Ferguson Act enacted? - (answer)1945
Which of these describe a participating life insurance policy? - (answer)Policyowners are entitled to
receive dividends
At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit
Reporting Act? - (answer)Upon completion of the application
A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of its
members is known as: - (answer)a fraternal benefit society
An insurance applicant MUST be informed of an investigation regarding his/her reputation and character
according to the: - (answer)Fair Credit Reporting Act
, NORTH CAROLINA XCEL TESTING LIFE & HEALTH INSURANCE QUESTIONS WITH 100%
CORRECT SOLUTIONS | GUARANTEED SUCCESS.
Which of the following consists of an offer, acceptance, and consideration? - (answer)Contract
Which of these is NOT a type of agent authority? - (answer)Principal
E and F are business partners. Each takes out a $500,000 life insurance policy on the other, naming
himself as primary beneficiary. E and F eventually terminate their business, and four months later E dies.
Although E was married with three children at the time of death, the primary beneficiary is still F.
However, an insurable interest no longer exists. Where will the proceeds from E's life insurance policy
be directed to? - (answer)F
All of the following are considered to be typical characteristics describing the nature of an insurance
contract, EXCEPT: - (answer)Bilateral
The part of a life insurance policy guaranteed to be true is called a(n): - (answer)warranty
A life insurance arrangement which circumvents insurable interest statutes is called: - (answer)Investor-
Originated Life Insurance
Taking receipt of premiums and holding them for the insurance company is an example of: -
(answer)Fiduciary responsibility
Which of these arrangements allows one to bypass insurable interest laws? - (answer)Investor-
Originated Life Insurance
Insurance contracts are known as ____ because certain future conditions or acts must occur before any
claims can be paid. - (answer)conditional
When third-party ownership is involved, applicants who also happen to be the stated primary
beneficiary are required to have: - (answer)insurable interest in the proposed insured
