NORTH CAROLINA XCEL TESTING LIFE & HEALTH INSURANCE EXAM STUDY EXAM | QUESTIONS & ANSWERS (VERIFIED) | LATEST UPDATE | GRADED A+

NORTH CAROLINA XCEL TESTING LIFE & HEALTH INSURANCE EXAM STUDY EXAM | QUESTIONS & ANSWERS (VERIFIED) | LATEST UPDATE | GRADED A+ Which of the following requires insurers to disclose when an applicant's consumer or credit history is being investigated: Correct Answer: 1970 - Fair Credit Reporting Act What type of reinsurance contract involves two companies automatically sharing their risk exposure? Correct Answer: Treaty What is the name of the law that requires insurers to disclose information gathering practices and where the information was obtained? Correct Answer: Fair Credit Reporting Act Who elects the governing body of a mutual insurance company? Correct Answer: policyholders 2 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: Correct Answer: reserves A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a: Correct Answer: risk retention group What year was the McCarran-Ferguson Act enacted? Correct Answer: 1945 Which of these describe a participating life insurance policy? Correct 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? Correct 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: Correct Answer: a fraternal benefit society 3 An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the: Correct Answer: Fair Credit Reporting Act Which of the following consists of an offer, acceptance, and consideration? Correct Answer: Contract Which of these is NOT a type of agent authority? Correct 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? Correct Answer: F All of the following are considered to be typical characteristics describing the nature of an insurance contract, EXCEPT: Correct Answer: Bilateral The part of a life insurance policy guaranteed to be true is called a(n): Correct Answer: warrant