FINAL EXAM ARIZONA LIFE AND HEALTH 3
XCEL QUESTIONS AND ANSWERS 2026 FULL
PRACTICE EXAM
◉ Reinsurers. Answer: Make up a specialized branch of the
insurance industry that insures the insurers. This is when an
insurance company transfers a portion of the risk to another insurer.
◉ Ceding company. Answer: Company transferring the risk during
the process of reinsuring
◉ Facultative reinsurance. Answer: Negotiated on a individual risk
basis, offer and acceptance must be on every reinsurance contract
◉ Treaty reinsurance. Answer: Automatic sharing of risk with the
ceding company
◉ Risk retention group. Answer: A group of similar business
engagement, insurance consists of spreading all or a portion of
liability exposure of its members, only providing liability coverage.
State regulated
,◉ Self insurance. Answer: Means of retaining risks, some businesses
set aside reserve funds to cover losses and purchase excess
insurance to cover large losses etc risk of personal assets
◉ Domestic insurers. Answer: Company is a domestic insurer in the
state in which it is incorporated
◉ Foreign insurers. Answer: Licensed to conduct business in states
other than one it is incorporated with
◉ Alien insurers. Answer: Companies incorporated In a country
other than the United states
◉ Authorized (admitted). Answer: Insurer that is entitled to transact
insurance within the state, complying with the law and satisfying all
conditions
◉ Unauthorized (non admitted). Answer: Insurer is not entitled to
transact insurance within the state
◉ Independent insurance agents. Answer: Sell the insurance of
several insurance companies but work for themselves
, ◉ Exclusive or captive agents. Answer: Represent only one company,
career agents working for career agencies
◉ General agents or managing general agents. Answer: Hire, train
and supervise other career agents within a specific geographic area
◉ Direct writing companies. Answer: Usually pay salaries too
employees whose Job function is to sell the company's insurance
products
◉ Producers. Answer: May function as agents, representing the
insurance company, or as brokers, representing the potentially
insured
◉ Fair credit reporting act. Answer: Regulates the collection of a
personal information on an applicant
◉ Insurance code. Answer: body of laws for insurance at the state
level
◉ Statues. Answer: Body of law developed by the legislative branch
of government
XCEL QUESTIONS AND ANSWERS 2026 FULL
PRACTICE EXAM
◉ Reinsurers. Answer: Make up a specialized branch of the
insurance industry that insures the insurers. This is when an
insurance company transfers a portion of the risk to another insurer.
◉ Ceding company. Answer: Company transferring the risk during
the process of reinsuring
◉ Facultative reinsurance. Answer: Negotiated on a individual risk
basis, offer and acceptance must be on every reinsurance contract
◉ Treaty reinsurance. Answer: Automatic sharing of risk with the
ceding company
◉ Risk retention group. Answer: A group of similar business
engagement, insurance consists of spreading all or a portion of
liability exposure of its members, only providing liability coverage.
State regulated
,◉ Self insurance. Answer: Means of retaining risks, some businesses
set aside reserve funds to cover losses and purchase excess
insurance to cover large losses etc risk of personal assets
◉ Domestic insurers. Answer: Company is a domestic insurer in the
state in which it is incorporated
◉ Foreign insurers. Answer: Licensed to conduct business in states
other than one it is incorporated with
◉ Alien insurers. Answer: Companies incorporated In a country
other than the United states
◉ Authorized (admitted). Answer: Insurer that is entitled to transact
insurance within the state, complying with the law and satisfying all
conditions
◉ Unauthorized (non admitted). Answer: Insurer is not entitled to
transact insurance within the state
◉ Independent insurance agents. Answer: Sell the insurance of
several insurance companies but work for themselves
, ◉ Exclusive or captive agents. Answer: Represent only one company,
career agents working for career agencies
◉ General agents or managing general agents. Answer: Hire, train
and supervise other career agents within a specific geographic area
◉ Direct writing companies. Answer: Usually pay salaries too
employees whose Job function is to sell the company's insurance
products
◉ Producers. Answer: May function as agents, representing the
insurance company, or as brokers, representing the potentially
insured
◉ Fair credit reporting act. Answer: Regulates the collection of a
personal information on an applicant
◉ Insurance code. Answer: body of laws for insurance at the state
level
◉ Statues. Answer: Body of law developed by the legislative branch
of government
