NORTH CAROLINA XCEL TESTING LIFE & HEALTH INSURANCE EXAM | QUESTIONS & ANSWERS (VERIFIED) | LATEST UPDATE | GRADED A+

Which of the following requires insurers to disclose when an applicant's consumer or credit history is being investigated: Correct Answer: 1970 - Fair Credit Reporting Act What type of reinsurance contract involves two companies automatically sharing their risk exposure? Correct Answer: Treaty What is the name of the law that requires insurers to disclose information gathering practices and where the information was obtained? Correct Answer: Fair Credit Reporting Act Who elects the governing body of a mutual insurance company? Correct Answer: policyholders 2 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: Correct Answer: reserves A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a: Correct Answer: risk retention group What year was the McCarran-Ferguson Act enacted? Correct Answer: 1945 Which of these describe a participating life insurance policy? Correct Answer: 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? Correct Answer: 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: Correct Answer: a fraternal benefit society An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the: 3 Correct Answer: Fair Credit Reporting Ac