NC Life Exam Questions With 100% Correct Answers 2024

NC Life Exam Questions With 100% Correct Answers 2024 Commercial Insurers - answer(also known as private insurance companies) are in the business of selling insurance for a profit. Multi-line insurer - answerAn insurance company selling more than one line of insurance Stock Companies - answerare organized and incorporated under state laws for the purpose of making a profit for its stockholders Mutual Companies - Participating - answerare owned by their policyholders. Mutual insurers are known as Participating Insurers because policyholders PARTICIPATE in receiving dividends and electing the board of directors. Risk retention groups - answerare mutual companies formed by a group of people in the same industry or profession. Examples would be pharmacists, dentists, and engineers. Lloyd's of London - answeris not an insurance company. Members of the association form syndicates to underwrite and issue insurance- like coverage. This is a group of investors who share in unusual risk. 1945 The McCarran Ferguson Act - answerstates that while the federal government has authority to regulate the insurance industry, 1970 Fair Credit Reporting Act - answerprovides individuals privacy protection and fair and accurate credit reporting. Insurance companies are required to notify applicants if a credit check will be made on them. Guaranty Associations - answerare established by all states to support insurers and protect consumers in case an insurer becomes insolvent. 4 elements of a contract - answerConsideration, legal purpose, offer and acceptance, competent parties Contract of Adhesion - answerthe insured must accept the entire contract with all of its terms and conditions (no negotiations) (take it or leave it) Aleatory Contract - answerInsurance contracts are aleatory, which means there is an unequal exchange.