XCEL SOLUTIONS STUDY EXAM GUIDE QUESTIONS AND
ANSWERS SURE A+
✔✔Stock companies (for the purpose of insurance) - ✔✔insurance companies owned
and controlled by a group of stockholders whose investment in the company provides
the safety margin necessary in issuance of guaranteed, fixed premium, nonparticipating
policies.
✔✔Nonparticipating plan - ✔✔insurance under which the insured is not entitles to share
divisible surplus of the company.
✔✔Mutual companies - ✔✔insurance companies characterized by having no capital
stock; it is owned by its policy owners and usually issues participating insurance.
✔✔Participating Plan - ✔✔a plan under which the policy owner receives shares
(commonly called dividends) of divisible surplus of the company.
✔✔reinsurer - ✔✔a company that provides financial protection to insurance companies.
Reinsurers handle risks that are too large for insurance companies to handle on their
own and make it possible for insurers to obtain more business that they would otherwise
be able to.
✔✔Fraternal Benefit Societiesare - ✔✔nonprofit benevolent organization that provide
insurance to its members. Producers or agents who only sell within their society, do not
receive commission, and stay under a specific premium threshold often have less
stringent licensing requirements.
✔✔Fair Credit Reporting Act - ✔✔a federal law requiring an individual to be informed if
she is being investifated by an inspection company. The law also outlines the sharing
and impact of such information and requires individuals to be notified prior to being
investigated.
✔✔Buyer's Guide - ✔✔an informational consumer guide books that explain insurance
policies and insurance concepts: in many states, they are required to be given to
applicants when certain types of coverages are being considered. often used with life
insurance, long-term care insurance, and annuities.
✔✔Policy Summary - ✔✔a summary of the terms of an insurance policy, including
conditions, coverage limitations, and premiums. Policy summaries are often used with
life insurance, long-term care insurance, and annuities.
✔✔National Association of Insurance Commissioners (NAIC) - ✔✔an association of all
of the state insurance commissioners active in insurance regulatory problems and in
forming and recommending model legislation and requirements. The NAIC does not
directly MAKE laws, as laws are made at the state level. they do work on suggesting
ANSWERS SURE A+
✔✔Stock companies (for the purpose of insurance) - ✔✔insurance companies owned
and controlled by a group of stockholders whose investment in the company provides
the safety margin necessary in issuance of guaranteed, fixed premium, nonparticipating
policies.
✔✔Nonparticipating plan - ✔✔insurance under which the insured is not entitles to share
divisible surplus of the company.
✔✔Mutual companies - ✔✔insurance companies characterized by having no capital
stock; it is owned by its policy owners and usually issues participating insurance.
✔✔Participating Plan - ✔✔a plan under which the policy owner receives shares
(commonly called dividends) of divisible surplus of the company.
✔✔reinsurer - ✔✔a company that provides financial protection to insurance companies.
Reinsurers handle risks that are too large for insurance companies to handle on their
own and make it possible for insurers to obtain more business that they would otherwise
be able to.
✔✔Fraternal Benefit Societiesare - ✔✔nonprofit benevolent organization that provide
insurance to its members. Producers or agents who only sell within their society, do not
receive commission, and stay under a specific premium threshold often have less
stringent licensing requirements.
✔✔Fair Credit Reporting Act - ✔✔a federal law requiring an individual to be informed if
she is being investifated by an inspection company. The law also outlines the sharing
and impact of such information and requires individuals to be notified prior to being
investigated.
✔✔Buyer's Guide - ✔✔an informational consumer guide books that explain insurance
policies and insurance concepts: in many states, they are required to be given to
applicants when certain types of coverages are being considered. often used with life
insurance, long-term care insurance, and annuities.
✔✔Policy Summary - ✔✔a summary of the terms of an insurance policy, including
conditions, coverage limitations, and premiums. Policy summaries are often used with
life insurance, long-term care insurance, and annuities.
✔✔National Association of Insurance Commissioners (NAIC) - ✔✔an association of all
of the state insurance commissioners active in insurance regulatory problems and in
forming and recommending model legislation and requirements. The NAIC does not
directly MAKE laws, as laws are made at the state level. they do work on suggesting
