North Carolina XCEL Testing Life & Health Insurance Exam - Study Guide

Which of the following requires insurers to disclose when an applicant's consumer or credit history is being investigated: ️Ans - 1970 - Fair Credit Reporting Act What type of reinsurance contract involves two companies automatically sharing their risk exposure? ️Ans - Treaty What is the name of the law that requires insurers to disclose information gathering practices and where the information was obtained? ️Ans - Fair Credit Reporting Act Who elects the governing body of a mutual insurance company? ️Ans - policyholders 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: ️Ans - reserves A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a: ️Ans - risk retention group What year was the McCarran-Ferguson Act enacted? ️Ans - 1945 Which of these describe a participating life insurance policy? ️Ans - Policyowners are entitled to receive dividends At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? ️Ans - Upon completion of the application A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of its members is known as: ️Ans - a fraternal benefit society