SC LIFE INSURANCE QUESTIONS & ANSWERS 100% ACCURATE

An insurer's ability to make unpredictable payouts to policy owners is called - ANSWER-Liquidity Fraternal Benefit Society has each of the following characteristics EXCEPT - ANSWER-Exist for Profit. FBS are non-profit entities that exist for the benefit of their members An insurer's claim settlement practices are regulated by the: - ANSWER-State insurance departments Why are dividends from a mutual insurer not subject to taxation? - ANSWER-Dividends are considered to be a return of premium-- paying dividends is equivalent to returning a premium The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT - ANSWER-insurance sales calls What is considered to be the primary reason for buying life insurance? - ANSWER-Provide death benefits A life insurance company has transferred some of its risk to an other insurer. The insurer assuming the risk is called the: - ANSWER-reinsurer a nonparticipating company is sometimes called a: - ANSWER-stock insurer- policy holders do not participate in dividends resulting from stock ownership A type of insurer that is owned by its policyowners is called - ANSWER-mutual insurer A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called - ANSWER-self-funded plan