XCEL Test Solutions EXAM PREP 2024/2025 with 100% correct
answers
Question:
What is a participating life insurance policy/
Answer:
Contract that allows the policyowner to receive a share of surplus in the form of policy dividends
Question:
An insurer owned by its policyholders is called a
Answer:
Mutual insurer
Question:
An insurer enters into a contract with a third party to insure itself against losses from insurance
policies it issues. What is this agreement called?
Answer:
reinsurance
Question:
which type of insurance is it where the insurer transfers loss exposures from policies written for its
insureds
Answer:
reinsurance
Question:
which is not a characteristic of reinsurance?
Answer:
increases the unearned premium reserve
Question:
a participating company is also referred to as which type of insurer?
,Answer:
mutual insurer
Question:
when a mutual insurer becomes a stock company, the process is called...
Answer:
Demutualization
Question:
which is a contract that involves one party which indemnifies another when a loss arises from an
unknown event?
Answer:
insurance policy
Question:
one important function of an insurance company is to identify and sell to potential customers. Best
description...?
Answer:
marketing
Question:
john owns an insurance policy that gives him the right to share in the insurer's surplus. What kind
of policy is this?
Answer:
participating
Question:
a hazard can be best described as
Answer:
a condition that may increase the likelihood of a loss occurring
Question:
Which of the following would NOT be accomplished with the purchase of an insurance policy?
, Answer:
Risk is eliminated
Question:
What refers to the condition that may increase the chance of a loss?
Answer:
Hazard
Question:
which best describes the statement "The more time an event is repeated, the more predictable the
outcome becomes".
Answer:
The law of large numbers
Question:
WHich describes the increase in the probability of a loss due to an insured's dishonest tendencies?
Answer:
MORAL hazard
Question:
What is NOT an element of an insurable risk?
Answer:
loss must be catastrophic
Question:
which statement correctly describes risk?
Answer:
pure risk is the only insurable risk
Question:
Moral hazard is described as the
Answer:
increased chance of a loss because of an insured's dishonest tendencies
answers
Question:
What is a participating life insurance policy/
Answer:
Contract that allows the policyowner to receive a share of surplus in the form of policy dividends
Question:
An insurer owned by its policyholders is called a
Answer:
Mutual insurer
Question:
An insurer enters into a contract with a third party to insure itself against losses from insurance
policies it issues. What is this agreement called?
Answer:
reinsurance
Question:
which type of insurance is it where the insurer transfers loss exposures from policies written for its
insureds
Answer:
reinsurance
Question:
which is not a characteristic of reinsurance?
Answer:
increases the unearned premium reserve
Question:
a participating company is also referred to as which type of insurer?
,Answer:
mutual insurer
Question:
when a mutual insurer becomes a stock company, the process is called...
Answer:
Demutualization
Question:
which is a contract that involves one party which indemnifies another when a loss arises from an
unknown event?
Answer:
insurance policy
Question:
one important function of an insurance company is to identify and sell to potential customers. Best
description...?
Answer:
marketing
Question:
john owns an insurance policy that gives him the right to share in the insurer's surplus. What kind
of policy is this?
Answer:
participating
Question:
a hazard can be best described as
Answer:
a condition that may increase the likelihood of a loss occurring
Question:
Which of the following would NOT be accomplished with the purchase of an insurance policy?
, Answer:
Risk is eliminated
Question:
What refers to the condition that may increase the chance of a loss?
Answer:
Hazard
Question:
which best describes the statement "The more time an event is repeated, the more predictable the
outcome becomes".
Answer:
The law of large numbers
Question:
WHich describes the increase in the probability of a loss due to an insured's dishonest tendencies?
Answer:
MORAL hazard
Question:
What is NOT an element of an insurable risk?
Answer:
loss must be catastrophic
Question:
which statement correctly describes risk?
Answer:
pure risk is the only insurable risk
Question:
Moral hazard is described as the
Answer:
increased chance of a loss because of an insured's dishonest tendencies
