Xcel Solutions Pennsylvania Insurance Test Questions and Answers Already Passed

Xcel Solutions Pennsylvania Insurance Test Questions and Answers Already Passed A nonparticipating company is sometimes called a Stock Insurer The Do Not Call Registry offers exemptions for calls placed from all the following EXCEPT Insurance Sales Calls 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 A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called A self-funded plan An insurer's ability to make unpredictable payouts to policyowners is called Liquidity What is considered to be the primary reason for buying life insurance? Provide death benefits Why are dividends from a mutual insurer not subject to taxation Because dividends are considered to be a return of premium An insurer's claim settlement practices are regulated by the State Insurance Departments 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? $10,000 A life insurance company has transferred some of its risk to another insurer. The insurer assuming the risk is called the Reinsurer Insurance represents the process of risk Transference How do insurers predict the increase of individual risks? Law of Large Numbers All of the following are examples of pure risk EXCEPT Losing money at a casino Insurance companies determine risk exposure by which of the following Law of large numbers and risk pooling An example of risk sharing would be Doctors pooling their money to cover malpractice exposure What is known as the immediate specific event causing loss and giving rise to risk? Peril All of the following are elements of an insurance policy EXCEPT Claim Forms What are an applicants statements concerning occupation hobbies, and personal health history regarded as? Representation The authority granted to a licensed producer is provided via the Law of Agency When the principal gives the agent authority in writing, it's referred to as Express Authority In an insurance contract, the insurer is the only party legally obligated to perform. Because of this, an insurance contract is considered Unilateral In order for a contract to be valid, it must Contain an offer and acceptance Insurable interest does NOT occur in which of the following relationships? Business owner and business client A nonforfeiture option can be used to increase the death benefit All of these are vaild options for an Adjustable Life Policy EXCEPT A Renewable Term Life Insurance policy can be renewed At a predetermined date or age, regardless of the insured's health Jonas is a whole life insurance policyowner and would like to add coverage for his two children Which of the following products would allow him to accomplish this? Child term rider How are survivorship life insurance policies helpful