XCEL Chapter 1 Exam Questions and
Answers with Verified Solutions | Latest
Updated 2026
A nonparticipating party will c. not pay dividends
a. provide a return of premium
b. provide tax advantages
c. not pay dividends
d. give policyowners special
privileges
A plan in which an employer pays d. A self-funded plan
insurance benefits from a fund,
derived from the employers
current
revenues is called
a. A self-derived plan
b. A multiple-employer plan
c. A blanket plan
d. A self-funded plan
Fraternal Benefits Society has c. Exist for profit
each
of the following characteristics
except
a. Incorporated
b. Without capital stock
c. Exist for profit
d. Exist for the benefit of its
members
, A type of insurer that is owned by b. mutual
its
policyowners is called
a. domestic
b. mutual
c. stock
d. in-house
A life insurance company has b. reinsurer
transferred some of its risk to
another insurer. The insurer
assuming
the risk is called the
a. mutual insurer
b. reinsurer
c. reciprocal insurer
d. participating insurer
What is considered to be the a. Provide death benefits
primary
reason for buying life insurance?
a. Provide death benefits
b. Provide money for retirement
c. Provide living benefits
d. Provide money for college
Karen is a producer who has A fine of $10,000 or up to one year in jail is
obtained personal information the
about penalty for any person who obtains
a client without having a legitimate information
reason to do so. Under the about a client without having legitimate
McCarran-Ferguson act what is reason to
the receive it
minimum penalty for this?
Answers with Verified Solutions | Latest
Updated 2026
A nonparticipating party will c. not pay dividends
a. provide a return of premium
b. provide tax advantages
c. not pay dividends
d. give policyowners special
privileges
A plan in which an employer pays d. A self-funded plan
insurance benefits from a fund,
derived from the employers
current
revenues is called
a. A self-derived plan
b. A multiple-employer plan
c. A blanket plan
d. A self-funded plan
Fraternal Benefits Society has c. Exist for profit
each
of the following characteristics
except
a. Incorporated
b. Without capital stock
c. Exist for profit
d. Exist for the benefit of its
members
, A type of insurer that is owned by b. mutual
its
policyowners is called
a. domestic
b. mutual
c. stock
d. in-house
A life insurance company has b. reinsurer
transferred some of its risk to
another insurer. The insurer
assuming
the risk is called the
a. mutual insurer
b. reinsurer
c. reciprocal insurer
d. participating insurer
What is considered to be the a. Provide death benefits
primary
reason for buying life insurance?
a. Provide death benefits
b. Provide money for retirement
c. Provide living benefits
d. Provide money for college
Karen is a producer who has A fine of $10,000 or up to one year in jail is
obtained personal information the
about penalty for any person who obtains
a client without having a legitimate information
reason to do so. Under the about a client without having legitimate
McCarran-Ferguson act what is reason to
the receive it
minimum penalty for this?
