Life and Health California Exam Questions & Answers graded A+

Reciprocal Insurance Company - ANSWER-Group-Owned Insurance whose main activity is risk sharing. Treaty Agreements - ANSWER-Reinsurance agreement that covers all risks contained in the subject lines of the business automatically. Facultative Agreements - ANSWER-Reinsurance agreement that allows ceding and reinsurance companies the opportunity to negotiate coverage for individual risks. Fiduciary - ANSWER-agent or broker who handles insurer funds in a trust capacity. Fair Credit Reporting Act (15 USC d) - ANSWER-Protects the consumers right to privacy, making certain the data is confidential, accurate, relevant and properly used, protects the rights of the individual from overly intrusive information collection practices. Gramm-Leach-Bliley Act (GLBA, the Financial Services Modernization Act of 1999) - ANSWER-Minimum privacy protections for consumers in financial transactions, regulating the gathering, retaining and dissemination of account numbers, copies of income tax returns, financial statements, driver license number, social security number, alien registration or passport information. California FInancial Information Privacy Act - ANSWER-(sometimes known as "Cal-GLBA"), adds to the consumer safeguards provided by Federal law. Insurance Information and Privacy Protection Act - ANSWER-establishes standards for the collection, use, preservation, and disclosure of information gathered during insurance transactions, HIPAA(Health Insurance Portability and Accountability Act) Disclosure - ANSWER-before an insurer may obtain an applicant's health records from a physician or hospital, the applicant must be informed about the insurer's data security procedures, what kinds of information may be obtained, how it will be used, and to whom it may be disclosed. The applicant must be given the opportunity to refuse the dissemination of the information.