North Carolina XCEL Testing Life &
Health Insurance Exam Study
Questions and Answers
1. Which of the following requires insurers to disclose when an
applicant's consumer or credit history is being investigated:: 1970 -
Fair Credit Reporting Act
2. What type of reinsurance contract involves two companies
automatically sharing their risk exposure?: Treaty
3. What is the name of the law that requires insurers to disclose
information gathering practices and where the information was
obtained?: Fair Credit Reporting Act
4. Who elects the governing body of a mutual insurance company?:
policyholders
5. The stated amount or percent of liquid assets that an insurer
must have on hand that will satisfy future obligations to its
policyholders is called:: reserves
6. A group-owned insurance company that is formed to assume and
,spread the liability risks of its members is known as a:: risk retention
group
7. What year was the McCarran-Ferguson Act enacted?: 1945
8. Which of these describe a participating life insurance policy?:
Policyowners are entitled to receive dividends
9. At what point must a life insurance applicant be informed of their
rights that fall under the Fair Credit Reporting Act?: Upon completion of the
application
10. A nonprofit incorporated society that does not have capital
stock and oper-ates for the sole benefit of its members is known as:: a
fraternal benefit society
11. An insurance applicant MUST be informed of an
investigation regarding his/her reputation and character according to
the:: Fair Credit Reporting Act
12. Which of the following consists of an offer, acceptance, and
consideration?-
: Contract
13. Which of these is NOT a type of agent authority?: Principal
, 14. E and F are business partners. Each takes out a $500,000 life
insurance policy on the other, naming himself as primary
beneficiary. E and F eventually terminate their business, and four
months later E dies. Although E was married with three children at
the time of death, the primary beneficiary is still F. However, an
insurable interest no longer exists. Where will the proceeds from E's
life insurance policy be directed to?: F
15. All of the following are considered to be typical characteristics
describing the
nature of an insurance contract, EXCEPT:: Bilateral
16. The part of a life insurance policy guaranteed to be true is
called a(n):: warranty
17. A life insurance arrangement which circumvents insurable
interest statutes is called:: Investor-Originated Life Insurance
18. Taking receipt of premiums and holding them for the
insurance company is an example of:: Fiduciary responsibility
19. Which of these arrangements allows one to bypass insurable
interest laws?-
Health Insurance Exam Study
Questions and Answers
1. Which of the following requires insurers to disclose when an
applicant's consumer or credit history is being investigated:: 1970 -
Fair Credit Reporting Act
2. What type of reinsurance contract involves two companies
automatically sharing their risk exposure?: Treaty
3. What is the name of the law that requires insurers to disclose
information gathering practices and where the information was
obtained?: Fair Credit Reporting Act
4. Who elects the governing body of a mutual insurance company?:
policyholders
5. The stated amount or percent of liquid assets that an insurer
must have on hand that will satisfy future obligations to its
policyholders is called:: reserves
6. A group-owned insurance company that is formed to assume and
,spread the liability risks of its members is known as a:: risk retention
group
7. What year was the McCarran-Ferguson Act enacted?: 1945
8. Which of these describe a participating life insurance policy?:
Policyowners are entitled to receive dividends
9. At what point must a life insurance applicant be informed of their
rights that fall under the Fair Credit Reporting Act?: Upon completion of the
application
10. A nonprofit incorporated society that does not have capital
stock and oper-ates for the sole benefit of its members is known as:: a
fraternal benefit society
11. An insurance applicant MUST be informed of an
investigation regarding his/her reputation and character according to
the:: Fair Credit Reporting Act
12. Which of the following consists of an offer, acceptance, and
consideration?-
: Contract
13. Which of these is NOT a type of agent authority?: Principal
, 14. E and F are business partners. Each takes out a $500,000 life
insurance policy on the other, naming himself as primary
beneficiary. E and F eventually terminate their business, and four
months later E dies. Although E was married with three children at
the time of death, the primary beneficiary is still F. However, an
insurable interest no longer exists. Where will the proceeds from E's
life insurance policy be directed to?: F
15. All of the following are considered to be typical characteristics
describing the
nature of an insurance contract, EXCEPT:: Bilateral
16. The part of a life insurance policy guaranteed to be true is
called a(n):: warranty
17. A life insurance arrangement which circumvents insurable
interest statutes is called:: Investor-Originated Life Insurance
18. Taking receipt of premiums and holding them for the
insurance company is an example of:: Fiduciary responsibility
19. Which of these arrangements allows one to bypass insurable
interest laws?-
