XCEL SOLUTIONS: Georgia Life-Only Pre-Licensing Questions and Answers 100% Pass

XCEL SOLUTIONS: Georgia Life-Only Pre-Licensing Questions and Answers 100% Pass When a policy pays dividends to its policyholders, it is said to be -profitable -mutual -nonparticipating -participating - Correct Answer ️️ --Participating A participating policy is one in which insurance policies pay out dividends to the policyholders. A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of its members is known as: -a fraternal benefit society -a stock insurer -a mutual insurer -the Life and Health Insurance Guaranty Association - Correct Answer ️️ --a fraternal benefit society A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of its members is known as a fraternal benefit society. Which of these describe a participating insurance policy? -Policyowners are entitled to receive dividends -Policyowners pay assessments for company losses -Stock companies allow their policyowners to share in company earnings -Policyowners are not entitled to vote for members of the board of directors - Correct Answer ️️ --Policyowners are entitled to receive dividends A participating life policy is one in which the policyowner receives dividends deriving from the company's divisible surplus. An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the: -State Guaranty Association -Fair Labor Standards Board -Fair Credit Reporting Act -National Association of Insurance Commissioners - Correct Answer ️️ --Fair Credit Reporting Act The Fair Credit Reporting Act is a Federal law requiring an individual to be informed if that individual is being investigated by an inspection company. Dividends payable to a policyowner are -guaranteed -declared by the State -declared by the insurance company -strictly regulated - Correct Answer ️️ --declared by the insurance company Dividends payable to a policyowner are declared by the insurance company. What type of reinsurance contract involves two companies automatically sharing their risk exposure? -Arbitrage -Facultative -Excess -Treaty - Correct Answer ️️ --Treaty Under treaty reinsurance, each party automatically accepts specific percentages of the insurer's business. What year was the McCarran-Ferguson Act enacted? -1944 -1945 -1946 -1947 - Correct Answer ️️ --1945 The McCarran-Ferguson Act was enacted in 1945 and made it clear that continued regulation of insurance by the states was in the public's best interest. What is the name of the law that requires insurers to disclose information gathering practices and where the information was obtained? -State Guaranty Association -Fair Labor Standards Board -Fair Credit Reporting Act -National Association of Insurance Companies - Correct Answer ️️ --Fair Credit Reporting Act The Fair Credit Reporting Act is a Federal law requiring an individual to be informed if that individual is being investigated by an inspection company. Which of these is considered a statement that is assured to be true in every respect? -Estoppel -Warranty -Guarantee -Representation - Correct Answer ️️ --Warranty A warranty is a statement that is considered guaranteed to be true