North Carolina XCEL Solutions Life & Health Insurance | Questions with Verified Answers | 100% Correct| Latest 2025/2026.

North Carolina XCEL Solutions Life
& Health Insurance | Questions
with Verified Answers | 100%
Correct| Latest 2025/2026.

Question:

Which of the following requires insurers to disclose when an applicant's
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consumer or credit history is being investigated:?
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Answer:

1970 - Fair Credit Reporting Act
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Question:
What type of reinsurance contract involves two companies automatically
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sharing their risk exposure??
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Answer:

Treaty



Question:
What is the name of the law that requires insurers to disclose information
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gathering practices and where the information was obtained??
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Answer:

Fair Credit Reporting Act
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,Question:

Who elects the governing body of a mutual insurance company??
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Answer:

policyholders



Question:

The stated amount or percent of liquid assets that an insurer must have
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on hand that will satisfy future obligations to its policyholders is called:?
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Answer:

reserves



Question:

A group-owned insurance company that is formed to assume and spread
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the liability risks of its members is known as a:?
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Answer:

risk retention group
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Question:

What year was the McCarran-Ferguson Act enacted??
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Answer:

1945


Question:

,Which of these describe a participating life insurance policy??
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Answer:

Policyowners are entitled to receive dividends i,- i,- i,- i,- i,-




Question:
At what point must a life insurance applicant be informed of their rights
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that fall under the Fair Credit Reporting Act??
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Answer:

Upon completion of the application
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Question:
A nonprofit incorporated society that does not have capital stock and
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operates for the sole benefit of its members is known as:?
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Answer:

a fraternal benefit society
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Question:

An insurance applicant MUST be informed of an investigation regarding
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his/her reputation and character according to the:?
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Answer:

Fair Credit Reporting Act
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Question:

, Which of the following consists of an offer, acceptance, and
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consideration??
Answer:

Contract


Question:
Which of these is NOT a type of agent authority??
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Answer:

Principal



Question:
E and F are business partners. Each takes out a $500,000 life insurance
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policy on the other, naming himself as primary beneficiary. E and F
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eventually terminate their business, and four months later E dies.
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Although E was married with three children at the time of death, the
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primary beneficiary is still F. However, an insurable interest no longer
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exists. Where will the proceeds from E's life insurance policy be directed
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to??
Answer:

F



Question:

All of the following are considered to be typical characteristics describing
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the nature of an insurance contract, EXCEPT:?
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Answer:

Bilateral