XCEL Solutions Practice Exam Questions and Answers

XCEL Solutions Practice Exam Questions and Answers a nonparticipating company is sometimes called a - Correct Answer ️️ -stock insurer Fraternal Benefit Society has each other the following characteristics except - Correct Answer ️️ -exist for profit The Fair Credit and Reporting Act's main purpose is to - Correct Answer ️️ -protect consumers with guidelines regarding credit reporting and distribution A life insurance company has transferred some of its risk to another insurer. The insurer assuming the risk is called the - Correct Answer ️️ -reinsurer What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus? - Correct Answer ️️ -participating life insurance policy What is considered to be the primary reason for buying life insurance? - Correct Answer ️️ -provide death benefits An insurer's ability to make unpredictable payouts to policyowners is called - Correct Answer ️️ -liquidity The Do Not Call Registry offers exemptions for calls placed from all of the following except - Correct Answer ️️ -insurance sales calls Why are dividends from a mutual insurer not subject to taxation? - Correct Answer ️️ - Because dividends are considered to be a return of premium An insurer's claim settlement practices are regulated by the - Correct Answer ️️ -State Insurance Departments All of the following are examples of pure risk EXCEPT - Correct Answer ️️ -losing money at a casino Which of the following is considered to be an event or condition that increases the probability of an insured's loss? - Correct Answer ️️ -Hazard An individual who removes the risk of losing money in the stock market by never purchasing stocks is said to be engaging in - Correct Answer ️️ -Risk avoidance The cause of a loss is referred to as - Correct Answer ️️ -peril Insurance represents the process of risk - Correct Answer ️️ -transference What is known as the immediate specific event causing loss and giving rise to risk - Correct Answer ️️ -Peril An example of risk sharing would be - Correct Answer ️️ -Doctors pooling their money to cover malpractice exposures