XCEL Solutions Practice Exam Questions and Answers

XCEL Solutions Practice Exam Questions and Answers Reserve - Correct Answer ️️ -funds held by the company to help future claims. minimum reserves are usually set by the state Department of Insurance. Multi-line insurer - Correct Answer ️️ -an insurance company or independent agent that provides a one-stop shop for businesses or individuals seeking coverage for all their insurance needs. For example, many large insurers offer individual policies for automobile, homeowner, long-term care, life and health insurance needs. Stock companies (for the purpose of insurance) - Correct Answer ️️ -insurance companies owned and controlled by a group of stockholders whose investment in the company provides the safety margin necessary in issuance of guaranteed, fixed premium, nonparticipating policies. Nonparticipating plan - Correct Answer ️️ -insurance under which the insured is not entitles to share divisible surplus of the company. Mutual companies - Correct Answer ️️ -insurance companies characterized by having no capital stock; it is owned by its policy owners and usually issues participating insurance. Participating Plan - Correct Answer ️️ -a plan under which the policy owner receives shares (commonly called dividends) of divisible surplus of the company. reinsurer - Correct Answer ️️ -a company that provides financial protection to insurance companies. Reinsurers handle risks that are too large for insurance companies to handle on their own and make it possible for insurers to obtain more business that they would otherwise be able to. Fraternal Benefit Societiesare - Correct Answer ️️ -nonprofit benevolent organization that provide insurance to its members. Producers or agents who only sell within their society, do not receive commission, and stay under a specific premium threshold often have less stringent licensing requirements. Fair Credit Reporting Act - Correct Answer ️️ -a federal law requiring an individual to be informed if she is being investifated by an inspection company. The law also outlines the sharing and impact of such information and requires individuals to be notified prior to being investigated. Buyer's Guide - Correct Answer ️️ -an informational consumer guide books that explain insurance policies and insurance concepts: in many states, they are required to be given to applicants when certain types of coverages are being considered. often used with life insurance, long-term care insurance, and annuities. Policy Summary - Correct Answer ️️ -a summary of the terms of an insurance policy, including conditions, coverage limitations, and premiums. Policy summaries are often used with life insurance, long-term care insurance, and annuities. National Association of Insurance Commissioners (NAIC) - Correct Answer ️️ -an association of all of the state insurance commissioners active in insurance regulatory problems and in forming and recommending model legislation and requirements. The NAIC does not directly MAKE laws, as laws are made at the state level. they do work on suggesting standards for states to adopt with the goal of a standardizing the insurance industry throughout the United States of America. State Guaranty Association - Correct Answer ️️ -established by each sate to support insurers and protect consumer in the case of insurer insolvency, guaranty associations are funded by insurers though assessments. All authorized insurers are legally required to participate in the State Guaranty Association for any state they are authorized to do business in regardless of where their corporate office is. Life Insurance - Correct Answer ️️ -insurance against loss due to the death of a particular person (the insured) upon whose death the insurance com