Excel Solutions Chapter 1 Exam- Basic Principles of Life and Health Insurance and Annuities Practice Questions and Answers Graded A+

Excel Solutions Chapter 1 Exam- Basic Principles of Life and Health Insurance and Annuities Practice Questions and Answers Graded A+ Fraternal Benefit Society has each of the following characteristics EXCEPT? Incorporated Without capital stock Exists for profit Exists for the benefit of its members - Correct Answer ️️ -Exists for profit(Fraternal benefit societies are not-for-profit entities which exist for the benefit of their members) The Fair Credit and Reporting Act's main purpose is to? Assist in the underwriting of insurance policies Protect Insurers from an applicants misrepresentation protect consumers with guidelines regarding credit reporting and distribution Assist an insurer in determining an applicants creditworthiness - Correct Answer ️️ - Protect consumers with guidelines regarding credit reporting and distribution What is considered to be the primary reason for buying life insurance? Provide death benefits Provide money for retirement Provide living benefits Provide money for college - Correct Answer ️️ -Provide death benefits The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT? Charities Political Organizations Insurance sales calls Surveys - Correct Answer ️️ -Insurance sales calls A nonparticipating company is sometimes called a(n)? Alien Insurer Mutual Insurer Reinsurer Stock Issuer - Correct Answer ️️ -Stock Insurer(because policyholders do not participate in dividends resulting from stock ownership) What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus? Nonparticipating life insurance policy participating life insurance policy divisible surplus life insurance policy straight life insurance policy - Correct Answer ️️ -Participating life insurance policy A life insurance company has transferred some of its risk to another ins