North Carolina XCEL Testing Life & Health Insurance Study Exam
Questions with 100% Correct Answers Latest Graded A+
Question:
Which of the following requires insurers to disclose when an applicant's consumer or credit history
is being investigated:
Answer:
1970 - Fair Credit Reporting Act
Question:
What type of reinsurance contract involves two companies automatically sharing their risk
exposure?
Answer:
Treaty
Question:
What is the name of the law that requires insurers to disclose information gathering practices and
where the information was obtained?
Answer:
Fair Credit Reporting Act
Question:
Who elects the governing body of a mutual insurance company?
Answer:
policyholders
Question:
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:
Answer:
reserves
,Question:
A group-owned insurance company that is formed to assume and spread the liability risks of its
members is known as a:
Answer:
risk retention group
Question:
What year was the McCarran-Ferguson Act enacted?
Answer:
1945
Question:
Which of these describe a participating life insurance policy?
Answer:
Policyowners are entitled to receive dividends
Question:
At what point must a life insurance applicant be informed of their rights that fall under the Fair
Credit Reporting Act?
Answer:
Upon completion of the application
Question:
A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of
its members is known as:
Answer:
a fraternal benefit society
Question:
An insurance applicant MUST be informed of an investigation regarding his/her reputation and
character according to the:
Answer:
Fair Credit Reporting Act
, Question:
Which of the following consists of an offer, acceptance, and consideration?
Answer:
Contract
Question:
Which of these is NOT a type of agent authority?
Answer:
Principal
Question:
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?
Answer:
F
Question:
All of the following are considered to be typical characteristics describing the nature of an
insurance contract, EXCEPT:
Answer:
Bilateral
Question:
The part of a life insurance policy guaranteed to be true is called a(n):
Answer:
warranty
Question:
A life insurance arrangement which circumvents insurable interest statutes is called:
Answer:
Questions with 100% Correct Answers Latest Graded A+
Question:
Which of the following requires insurers to disclose when an applicant's consumer or credit history
is being investigated:
Answer:
1970 - Fair Credit Reporting Act
Question:
What type of reinsurance contract involves two companies automatically sharing their risk
exposure?
Answer:
Treaty
Question:
What is the name of the law that requires insurers to disclose information gathering practices and
where the information was obtained?
Answer:
Fair Credit Reporting Act
Question:
Who elects the governing body of a mutual insurance company?
Answer:
policyholders
Question:
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:
Answer:
reserves
,Question:
A group-owned insurance company that is formed to assume and spread the liability risks of its
members is known as a:
Answer:
risk retention group
Question:
What year was the McCarran-Ferguson Act enacted?
Answer:
1945
Question:
Which of these describe a participating life insurance policy?
Answer:
Policyowners are entitled to receive dividends
Question:
At what point must a life insurance applicant be informed of their rights that fall under the Fair
Credit Reporting Act?
Answer:
Upon completion of the application
Question:
A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of
its members is known as:
Answer:
a fraternal benefit society
Question:
An insurance applicant MUST be informed of an investigation regarding his/her reputation and
character according to the:
Answer:
Fair Credit Reporting Act
, Question:
Which of the following consists of an offer, acceptance, and consideration?
Answer:
Contract
Question:
Which of these is NOT a type of agent authority?
Answer:
Principal
Question:
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?
Answer:
F
Question:
All of the following are considered to be typical characteristics describing the nature of an
insurance contract, EXCEPT:
Answer:
Bilateral
Question:
The part of a life insurance policy guaranteed to be true is called a(n):
Answer:
warranty
Question:
A life insurance arrangement which circumvents insurable interest statutes is called:
Answer:
