MICHIGAN LIFE ACCIDENT & HEALTH EXAM

What is considered to be the primary reason for buying life insurance? - Answer- Provide death benefits Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Under the McCarran-Feguson Act, what is the minimum penalty for this? - Answer- $10,000 or up to 1 year in jail A nonparticipating company is sometimes called a(n) - Answer- Stock insurer, because policyholders do not participate in dividends resulting from stock ownership. The Fair Credit and Reporting Act's main purpose is to - Answer- Protect Consumers with guidelines regarding credit reporting and distribution What is the primary purpose of a rating service such as A.M Best? - Answer- Determine financial strength of an insurance company Fraternal Benefit Society has each of the following characteristics EXCEPT? - Incorporated - Without capital stock - exist for profit - exist for the benefit of its members - Answer- Exist for profit, FBS are not for profit and exist for the benefit of its members. An insurer's ability to make unpredictable payouts to policyowners is called - Answer- Liquidity The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT - Charities - Political Organizations