Life & Health Insurance Exam 2024 (Arkansas) Questions & Answers 100% Accurate!

Reserves - ANSWER Funds held by the company to fullfull future claims. Funds are set by the state department of insurance. Multi-line Insurer - ANSWER An insurance company selling more than one line of insurance. (Ex. Home, auto, health, etc) Stock Companies - ANSWER Owned and controlled by stockholders, whose investment set the safety margin. Guaranteed fixed premiums. Nonparticipating policies. nonparticipating policy - ANSWER Insurance under which the insured is not entitled to share in the divisible surplus of the company. Mutual Companies - ANSWER Owned by the policy owners and issue participating policies. Participating plan. - ANSWER A plan under which the policy owner receives shares (dividends) of the divisible surplus of the company. Reinsurer - ANSWER A company that provides financial protection to insurance companies. Handles risk to large for insurance companies to handle alone. Fraternal Benefit Society - ANSWER Nonprofit organization that provides insurance to its members. It's agent who sell within the society do not make commission. Stays under specific premiums. Fair Credit Reporting Act - ANSWER A federal law requiring a person to know if he/she is being investigated by an inspection company, and is notified prior to investigation. The maximum penalty for obtaining consumer information under false pretenses is $5,000 and/or 1 year imprisonment. Buyer's Guide - ANSWER A booklet that describes insurance policies and concepts, and provides general information to help an applicant make an informed decision. Policy Summary - ANSWER a written statement describing the features and elements of the policy being issued. Includes conditions, coverage, limitations, and premiums. National Association of Insurance Commissioners (NAIC) - ANSWER Organization made up of individual state insurance commissioners whose purpose is to promote uniformity in regulation by drafting model laws and regulations. State Guaranty Association - ANSWER protect policy owners in the event of any insurance company going out of business, becoming insolvent, or the in ability to pay claims. Every authorized insurer are legally required to participate. life insurance - ANSWER insurance paid to named beneficiaries when the insured person dies. Term Life Insurance - ANSWER Insurance that provides financial protection from losses resulting from a death during a definite period, or term. whole life insurance - ANSWER Insurance that is kept in force for a person's entire life