NJ Health Insurance XCEL Solutions Exam Questions with 100%
Correct Answers Latest Graded A+
Question:
Why are dividends from a mutual insurer not subject to taxation?
Answer:
because dividends are considered to be a return of premium
Question:
ABC insurance company transfers part of their risk to XYZ insurance company. This situation is
called
Answer:
reinsurance
Question:
A nonparticipating company is sometimes called a(n)
Answer:
stock insurer
Question:
What is considered to be the primary reason for buying life insurance?
Answer:
provide death benefits
Question:
A(n) company is owned by its shareholders
Answer:
stock
Question:
A plan in which an employer pays insurance benefits from a fund derived from the employer's
current revenues is called
,Answer:
a self-funded plan
Question:
What is the primary purpose of a rating service company such as A.M. Best?
Answer:
determine financial strength of an insurance company
Question:
Karen is a producer who has obtained personal information about a client without having a
legitimate reason to do so. Under the McCarran-Ferguson Act, what is the minimum penalty for
this?
Answer:
$10,000
Question:
A nonparticipating policy will
Answer:
not pay dividends
Question:
A life insurance company has transferred some of its risk to another insurer. The insurer assuming
the risk is called the
Answer:
reinsurer
Question:
Ken is a producer who has obtained Consumer Information Reports under false pretenses. Under
the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken?
Answer:
$5,000
Question:
,A type of insurer that is owned by its policyowners is called
Answer:
mutual
Fraternal Benefit Society has each of the following characteristics EXCEPT
incorporated
without capital stock
exists for profit
Question:
exists for the benefit of its members
Answer:
exists for profit
Question:
The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT
charities political organizations insurance sales calls surveys
Answer:
insurance sales calls
Question:
What kind of life insurance policy issues by a mutual insurer provides a return of divisible surplus?
Answer:
participating life insurance policy
Question:
An insurer's ability to make unpredictable payouts to policyowners is called
Answer:
liquidity
Question:
An insurer's claim settlement practices are regulated by the
, Answer:
state insurance departments
Question:
Which of the following is NOT considered advertising? a rating from a rating service company,
such as A.M. Best an illustration a sales presentation direct mailing from an agency
Answer:
a rating from a rating service company, such as A.M. Best
Question:
The Fair Credit and Reporting Act's main purpose is to
Answer:
protect consumers with guidelines regarding credit reporting and distribution
Question:
When the principle gives the agent authority in writing, it's referred to as
Answer:
express authority
Question:
What are an applicant's statements concerning occupation, hobbies, and personal health history
regarded as?
Answer:
representations
Question:
In an insurance contract, the element that shows each party is giving something of value is called
Answer:
consideration
Question:
Which of the following is an example of the insured's consideration?
Answer:
Correct Answers Latest Graded A+
Question:
Why are dividends from a mutual insurer not subject to taxation?
Answer:
because dividends are considered to be a return of premium
Question:
ABC insurance company transfers part of their risk to XYZ insurance company. This situation is
called
Answer:
reinsurance
Question:
A nonparticipating company is sometimes called a(n)
Answer:
stock insurer
Question:
What is considered to be the primary reason for buying life insurance?
Answer:
provide death benefits
Question:
A(n) company is owned by its shareholders
Answer:
stock
Question:
A plan in which an employer pays insurance benefits from a fund derived from the employer's
current revenues is called
,Answer:
a self-funded plan
Question:
What is the primary purpose of a rating service company such as A.M. Best?
Answer:
determine financial strength of an insurance company
Question:
Karen is a producer who has obtained personal information about a client without having a
legitimate reason to do so. Under the McCarran-Ferguson Act, what is the minimum penalty for
this?
Answer:
$10,000
Question:
A nonparticipating policy will
Answer:
not pay dividends
Question:
A life insurance company has transferred some of its risk to another insurer. The insurer assuming
the risk is called the
Answer:
reinsurer
Question:
Ken is a producer who has obtained Consumer Information Reports under false pretenses. Under
the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken?
Answer:
$5,000
Question:
,A type of insurer that is owned by its policyowners is called
Answer:
mutual
Fraternal Benefit Society has each of the following characteristics EXCEPT
incorporated
without capital stock
exists for profit
Question:
exists for the benefit of its members
Answer:
exists for profit
Question:
The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT
charities political organizations insurance sales calls surveys
Answer:
insurance sales calls
Question:
What kind of life insurance policy issues by a mutual insurer provides a return of divisible surplus?
Answer:
participating life insurance policy
Question:
An insurer's ability to make unpredictable payouts to policyowners is called
Answer:
liquidity
Question:
An insurer's claim settlement practices are regulated by the
, Answer:
state insurance departments
Question:
Which of the following is NOT considered advertising? a rating from a rating service company,
such as A.M. Best an illustration a sales presentation direct mailing from an agency
Answer:
a rating from a rating service company, such as A.M. Best
Question:
The Fair Credit and Reporting Act's main purpose is to
Answer:
protect consumers with guidelines regarding credit reporting and distribution
Question:
When the principle gives the agent authority in writing, it's referred to as
Answer:
express authority
Question:
What are an applicant's statements concerning occupation, hobbies, and personal health history
regarded as?
Answer:
representations
Question:
In an insurance contract, the element that shows each party is giving something of value is called
Answer:
consideration
Question:
Which of the following is an example of the insured's consideration?
Answer:
