UTAH HEALTH AND LIFE INSURANCE EXAM 3 TESTBANK COMPLETE ACTUAL EXAM REAL QUESTIONS AND CORRECT DETAILED ANSWERS (CORRECT VERIFIED SOLUTIONS) A NEW UPDATED VERSION 2024

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LIFE AND HEALTH INSURANCE EXAM 2025 VE
p p p p p p




RIFIED QUESTIONS AND ANSWERS p p p




Which of the following requires insurers to disclose when an applicant's consumer or
p p p p p p p p p p p p p


credit history is being investigated?
p p p p




1070 Fair Credit Reporting Act
p p p p




A nonprofit incorporated society that does not have capital stock and operates for the
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sole benefit of its members is known as:
p p p p p p p




fraternal benefit society
p p




What type of reinsurance contract involves two companies automatically sharing thei
p p p p p p p p p p


r risk exposure?
p p




treaty



What year was the McCarren-Ferguson Act enacted? 1945
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Who elects the governing body of a mutual insurance company?
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policy holders p




At what point must a life insurance applicant be informed of their rights that fall under
p p p p p p p p p p p p p p p


the Fair Credit Reporting Act?
p p p p p




Upon completion of the application
p p p p




What is the name of the law that requires insurers to disclose information gathering pr
p p p p p p p p p p p p p p


actices and where the information was obtained
p p p p p p




Fair Credit Report
p p




A group-
p


owned insurance company that is formed to assume and spread the liability risks
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of its members is known as a
p p p p p p




risk retention group
p p




Which of these describes a participating life insurance policy? Policyo
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wners are entitled to receive dividends
p p p p p

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An insurance applicant MUST be informed of an investigation regarding his/her repu
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tation and character according to the
p p p p p




Fair Credit Reporting Act
p p p




The stated amount or percent of liquid assets that an insurer must have on hand that wi
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ll satisfy future obligations to its policyholders is called
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reserves




Q purchases a $500,000 life insurance policy and pays $900 in premiums over the firs
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t six months. Q dies suddenly and the beneficiary is paid $500,000. This exchange of
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unequal values reflects which of the following insurance contract features?
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Aleatory




In an insurance contract the insurer is the only party who makes a legally enforceable
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promise. What kind of contract is this?
p p p p p p




Unilateral




Insurance contracts are known as p p p p p


because certain future conditions or acts p p p p p p


must occur before any claims can be paid.
p p p p p p p

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Conditional



Because certain future conditions or acts must
p p p p p p




occur before any claims can be paid, insurance contracts ar
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e known as conditional.
p p p




Stranger Originated Life Insurance has been found to be in violation of which if the
p p p p p p p p p p p p p p


following contractual elements?
p p p




Legal Purpose p




A policy of adhesion can only be modified by whom? The
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insurance company. p




(A policy of adhesion is best described as a policy which only the insurance company
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can modify.) p




At what point does an informal contract begin binding?
p p p p p p p p




When one party makes an offer and the other party except that offer
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When third- p


party ownership is involved applicants who also happen to be the stated primary b
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eneficiary are required to have p p p p