XCEL Chapter 1 2023 with 100% correct questions and answers

A nonparticipating company is sometimes called a(n)? A. alien insurer B. mutual insurer C. reinsurer D. stock insurer stock insurer An insurer's claim settlement practices are regulated by the? A. Securities and Exchange Commission (SEC) B. National Association of Claims Adjusters (NACA) C. National Association of Insurance Commissioners (NAIC) D. State insurance departments State insurance departments What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus? A. nonparticipating life insurance policy B. participating life insurance policy C. divisible surplus life insurance policy D. straight life insurance policy participating life insurance policy What is the primary purpose of a rating service company such as A.M Best? A. Determine which insurer offers the best rates B. Determine which insurer offers the best policies C. Determine financial strength of an insurance company D. Determine which agent to use locally Determine financial strength of an insurance company Why are dividends from a mutual insurer not subject to taxation? A. Because insurance premiums are tax-deductible B. Because dividends are already subject to capital gains C. Because dividends are payable directly to the policyholder D. Because dividends are considered to be a return of premium Because dividends are considered to be a return of premium Ken is a producer who has obtained Consumer Information Reports under false pretenses. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? $5,000 The Fair Credit and Reporting Act's main purpose is to protect consumers with guidelines regarding credit reporting and distribution Which of the following is NOT considered advertising? A. A rating from a rating service company, such as A.M. Best B. An illustration C. A sales presentation D. Direct mailing from an agency A rating from a rating service company, such as A.M. Best An insurer's ability to make unpredictable payouts to policyowners is called liquidity A life insurance company has transferred some of its risk to another insurer. The insurer assuming the risk is called the? A. mutual insurer B. reinsurer C. reciprocal insurer D. participating insurer reinsurer Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Under the McCarran-Ferguson Act, what is the minimum penalty for this? A. $0 B. $5,000 C. $10,000 D. $15,000 $10,000 A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called A. A self-derived plan B. A multiple-employer plan C. A blanket plan D. A self-funded plan A self-funded plan The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT? A. charities B. political organizations C. insurance sales calls D. surveys Insurance sales calls