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

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

Question:

Why are dividends from a mutual insurer not subject to taxation??
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Answer:

because dividends are considered to be a return of premium
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Question:

ABC insurance company transfers part of their risk to XYZ insurance
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company. This situation is called?
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Answer:

reinsurance


Question:

A nonparticipating company is sometimes called a(n)?
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Answer:

stock insurer i,-

,Question:
What is considered to be the primary reason for buying life insurance??
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Answer:

provide death benefits i,- i,-




Question:

A(n) _____ company is owned by its shareholders?
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Answer:

stock


Question:

A plan in which an employer pays insurance benefits from a fund derived
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from the employer's current revenues is called?
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Answer:

a self-funded plan
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Question:

What is the primary purpose of a rating service company such as A.M.
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Best??
Answer:

determine financial strength of an insurance company
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Question:

,Karen is a producer who has obtained personal information about a client
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without having a legitimate reason to do so. Under the McCarran-
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Ferguson Act, what is the minimum penalty for this??
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Answer:

$10,000



Question:

A nonparticipating policy will?
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Answer:

not pay dividends
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Question:

A life insurance company has transferred some of its risk to another
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insurer. The insurer assuming the risk is called the?
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Answer:

reinsurer


Question:

Ken is a producer who has obtained Consumer Information Reports under
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false pretenses. Under the Fair Credit Reporting Act, what is the maximum
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penalty that may be imposed on Ken??
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Answer:

$5,000


Question:

, A type of insurer that is owned by its policyowners is called?
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Answer:

mutual



Question:
Fraternal Benefit Society has each of the following characteristics EXCEPT
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incorporated

without capital stock i,- i,-




exists for profit
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exists for the benefit of its members?
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Answer:

exists for profit
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Question:
The Do Not Call Registry offers exemptions for calls placed from all of the
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following EXCEPT i,-




charities

political organizations i,-




insurance sales calls i,- i,-




surveys?
Answer:

insurance sales calls i,- i,-