Xcel Pre-Final Exam - New York Life, Accident and
Health Part 1 Questions with Correct Answers
2025/2026
What nkind nof nlife ninsurance npolicy nissued nby na nmutual ninsurer nprovides na nreturn nof
ndivisible nsurplus?
A. nonparticipating nlife ninsurance npolicy
B. participating nlife ninsurance npolicy
C. divisible nsurplus nlife ninsurance npolicy
D. straight nlife ninsurance npolicy n- nCORRECT nANSWER n-participating nlife ninsurance npolicy
Ken nis na nproducer nwho nhas nobtained nConsumer nInformation nReports nunder nfalse
npretenses. nUnder nthe nFair nCredit nReporting nAct, nwhat nis nthe nmaximum npenalty nthat
nmay nbe nimposed non nKen?
A. $1,000
B. $3,000
C. $5,000
D. $7,000 n- nCORRECT nANSWER n-$5,000
An ninsurer's nability nto nmake nunpredictable npayouts nto npolicyowners nis ncalled
A. investment nvalues
B. liquidity
,C. assets
D. capital n- nCORRECT nANSWER n-liquidity
The nFair nCredit nand nReporting nAct's nmain npurpose nis nto
A. assist nin nthe nunderwriting nof ninsurance npolicies
,B. protect ninsurers nfrom nan napplicant's nmisrepresentation
C. protect nconsumers nwith nguidelines nregarding ncredit nreporting nand ndistribution
D. assist nan ninsurer nin ndetermining nan napplicant's ncreditworthiness n- nCORRECT nANSWER
n-protect nconsumers nwith nguidelines nregarding ncredit nreporting nand ndistribution
A nplan nin nwhich nan nemployer npays ninsurance nbenefits nfrom na nfund nderived nfrom nthe
nemployer's ncurrent nrevenues nis ncalled
A. nA nself-derived nplan
B. nA nmultiple-employer nplan
C. nA nblanket nplan
D. nA nself-funded nplan n- nCORRECT nANSWER n-A nself-funded nplan
Karen nis na nproducer nwho nhas nobtained npersonal ninformation nabout na nclient nwithout
nhaving na nlegitimate nreason nto ndo nso. nUnder nthe nMcCarran-Ferguson nAct, nwhat nis nthe
nminimum npenalty nfor nthis?
A. n$0
B. n$5,000
C. n$10,000
D. n$15,000 n- nCORRECT nANSWER n-$10,000
A(n) n company nis nowned nby nits nshareholders.
A. nmixed
B. ninteractive
C. nstock
D. nmutual n- nCORRECT nANSWER n-stock
, ABC nInsurance nCompany ntransfers npart nof ntheir nrisk nto nXYZ nInsurance nCompany. nThis
nsituation nis ncalled
A. nreciprocity
B. nreinsurance
C. nconservation
D. nrisk ntransfer n- nCORRECT nANSWER n-reinsurance
The nDo nNot nCall nRegistry noffers nexemptions nfor ncalls nplaced nfrom nall nof nthe nfollowing
nEXCEPT
A. ncharities
B. npolitical norganizations
C. ninsurance nsales ncalls
D. nsurveys n- nCORRECT nANSWER n-insurance nsales ncalls
A nlife ninsurance ncompany nhas ntransferred nsome nof nits nrisk nto nanother ninsurer. nThe
ninsurer nassuming nthe nrisk nis ncalled nthe
A. nmutual ninsurer
B. nreinsurer
C. nreciprocal ninsurer
D. nparticipating ninsurer n- nCORRECT nANSWER n-reinsurer
A nnonparticipating npolicy nwill
A. nprovide na nreturn nof npremium
B. nprovide ntax nadvantages
C. nnot npay ndividends
D. ngive npolicyowners nspecial nprivileges n- nCORRECT nANSWER n-not npay ndividends
What nis nthe nprimary npurpose nof na nrating nservice ncompany nsuch nas nA.M nBest?
Health Part 1 Questions with Correct Answers
2025/2026
What nkind nof nlife ninsurance npolicy nissued nby na nmutual ninsurer nprovides na nreturn nof
ndivisible nsurplus?
A. nonparticipating nlife ninsurance npolicy
B. participating nlife ninsurance npolicy
C. divisible nsurplus nlife ninsurance npolicy
D. straight nlife ninsurance npolicy n- nCORRECT nANSWER n-participating nlife ninsurance npolicy
Ken nis na nproducer nwho nhas nobtained nConsumer nInformation nReports nunder nfalse
npretenses. nUnder nthe nFair nCredit nReporting nAct, nwhat nis nthe nmaximum npenalty nthat
nmay nbe nimposed non nKen?
A. $1,000
B. $3,000
C. $5,000
D. $7,000 n- nCORRECT nANSWER n-$5,000
An ninsurer's nability nto nmake nunpredictable npayouts nto npolicyowners nis ncalled
A. investment nvalues
B. liquidity
,C. assets
D. capital n- nCORRECT nANSWER n-liquidity
The nFair nCredit nand nReporting nAct's nmain npurpose nis nto
A. assist nin nthe nunderwriting nof ninsurance npolicies
,B. protect ninsurers nfrom nan napplicant's nmisrepresentation
C. protect nconsumers nwith nguidelines nregarding ncredit nreporting nand ndistribution
D. assist nan ninsurer nin ndetermining nan napplicant's ncreditworthiness n- nCORRECT nANSWER
n-protect nconsumers nwith nguidelines nregarding ncredit nreporting nand ndistribution
A nplan nin nwhich nan nemployer npays ninsurance nbenefits nfrom na nfund nderived nfrom nthe
nemployer's ncurrent nrevenues nis ncalled
A. nA nself-derived nplan
B. nA nmultiple-employer nplan
C. nA nblanket nplan
D. nA nself-funded nplan n- nCORRECT nANSWER n-A nself-funded nplan
Karen nis na nproducer nwho nhas nobtained npersonal ninformation nabout na nclient nwithout
nhaving na nlegitimate nreason nto ndo nso. nUnder nthe nMcCarran-Ferguson nAct, nwhat nis nthe
nminimum npenalty nfor nthis?
A. n$0
B. n$5,000
C. n$10,000
D. n$15,000 n- nCORRECT nANSWER n-$10,000
A(n) n company nis nowned nby nits nshareholders.
A. nmixed
B. ninteractive
C. nstock
D. nmutual n- nCORRECT nANSWER n-stock
, ABC nInsurance nCompany ntransfers npart nof ntheir nrisk nto nXYZ nInsurance nCompany. nThis
nsituation nis ncalled
A. nreciprocity
B. nreinsurance
C. nconservation
D. nrisk ntransfer n- nCORRECT nANSWER n-reinsurance
The nDo nNot nCall nRegistry noffers nexemptions nfor ncalls nplaced nfrom nall nof nthe nfollowing
nEXCEPT
A. ncharities
B. npolitical norganizations
C. ninsurance nsales ncalls
D. nsurveys n- nCORRECT nANSWER n-insurance nsales ncalls
A nlife ninsurance ncompany nhas ntransferred nsome nof nits nrisk nto nanother ninsurer. nThe
ninsurer nassuming nthe nrisk nis ncalled nthe
A. nmutual ninsurer
B. nreinsurer
C. nreciprocal ninsurer
D. nparticipating ninsurer n- nCORRECT nANSWER n-reinsurer
A nnonparticipating npolicy nwill
A. nprovide na nreturn nof npremium
B. nprovide ntax nadvantages
C. nnot npay ndividends
D. ngive npolicyowners nspecial nprivileges n- nCORRECT nANSWER n-not npay ndividends
What nis nthe nprimary npurpose nof na nrating nservice ncompany nsuch nas nA.M nBest?
