XCEL Life and Health Insurance |
Questions and correct answers |
Latest version 2024/2025
What is the primary purpose of a rating service company such as A.M Best? - ANSWER -Determine
financial strength of an insurance company
What is considered to be the primary reason for buying life insurance? - ANSWER -Provide death
benefits
Which of the following is NOT considered advertising? - ANSWER -A rating from a rating service
company, such as A.M. Best
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
What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus? -
ANSWER -Participating life insurance policy
Why are dividends from a mutual insurer not subject to taxation? - ANSWER -Because dividends are
considered to be a return of premium
A type of insurer that is owned by its policyowners is called - ANSWER -Mutual
A nonparticipating company is sometimes called a(n) - ANSWER -stock insurer
The Fair Credit and Reporting Act's main purpose is to - ANSWER -protect consumers with guidelines
regarding credit reporting and distribution
The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT -
ANSWER -Insurance sales calls
An insurer's ability to make unpredictable payouts to policyowners is called - ANSWER -Liquidity
A nonparticipating policy will - ANSWER -not pay dividends
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
A life insurance company has transferred some of its risk to another insurer. The insurer assuming
the risk is called the - ANSWER -reinsurer
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
Which of these are considered to be events or conditions that increase the chances of an insured's
loss? - ANSWER -Hazards
Questions and correct answers |
Latest version 2024/2025
What is the primary purpose of a rating service company such as A.M Best? - ANSWER -Determine
financial strength of an insurance company
What is considered to be the primary reason for buying life insurance? - ANSWER -Provide death
benefits
Which of the following is NOT considered advertising? - ANSWER -A rating from a rating service
company, such as A.M. Best
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
What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus? -
ANSWER -Participating life insurance policy
Why are dividends from a mutual insurer not subject to taxation? - ANSWER -Because dividends are
considered to be a return of premium
A type of insurer that is owned by its policyowners is called - ANSWER -Mutual
A nonparticipating company is sometimes called a(n) - ANSWER -stock insurer
The Fair Credit and Reporting Act's main purpose is to - ANSWER -protect consumers with guidelines
regarding credit reporting and distribution
The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT -
ANSWER -Insurance sales calls
An insurer's ability to make unpredictable payouts to policyowners is called - ANSWER -Liquidity
A nonparticipating policy will - ANSWER -not pay dividends
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
A life insurance company has transferred some of its risk to another insurer. The insurer assuming
the risk is called the - ANSWER -reinsurer
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
Which of these are considered to be events or conditions that increase the chances of an insured's
loss? - ANSWER -Hazards
