XCEL Florida Insurance Exam questions and correct answers

XCEL Florida Insurance Exam questions and correct answers What is the name of the law that requires insurers to disclose information gathering practices and where the information is obtained - ANSWERS Fair Credit Reporting Act Which of these describe a participating insurance policy - ANSWERS Policy owners are entitled to receive dividends Who elects the governing body of a mutual insurance company - ANSWERS Policyholders Which of the following requires insurer to disclose when an applicant's consumer credit history is being investigated - ANSWERS Fair Credit Reporting Act A group owned insurance company that is formed to assume and spread the liability risk of it's members is know as a - ANSWERS risk retention group Which of the following requires insurers to disclose when an applicant consumer or Credit history is being investigated? - ANSWERS 1970 Fair Credit Reporting Act When a policy pays dividends to it policyholders, it is said to be - ANSWERS participating An Insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the: - ANSWERS Fair Credit Reporting Act What type of risk is the only insurable risk - ANSWERS Pure Risk Prue Risk - ANSWERS Is a situation that can only result in a loss, there is no opportunity for financial gain What year was the McCarran-Ferguson Act enacted - ANSWERS 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 type of reinsurance contract involves two companies automatically sharing their risk exposure? - ANSWERS Treaty A nonprofit incorporated society that does not have capital stock and operates for the sole benefits of its members is known as - ANSWERS A fraternal benefit society At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act - ANSWERS Upon completion of the application. A contract where one party either accepts or rejects the terms of a contract written by another is called a contract of - ANSWERS adhesion insurance policies are offered on a "take it or leave it" basis, which make them - ANSWERS Contracts of adhesion If a contract of adhesion contains complicated language, to whom would the interpretation be in favor of - ANSWERS Insured A policy of adhesion can only be modified by whom - ANSWERS The insurance company. (A policy of adhesion is best described as a policy which only the insurance company can modify.) At what point does an informal agreement become a binding contract - ANSWERS When consideration is provided by one of the parties of the contract. A life insurance policy would be considered a wagering contract WITHOUT - ANSWERS Insurable interest Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called: - ANSWERS Representations in an insurance contract, the insurer is the only party who makes a legally enforceable promise. What kind of contract is this? - ANSWERS Unilateral taking receipt of premiums and holding them for the insurance company is an example of: - ANSWERS Fiduciary responsibility Which of these require and offer, acceptance, and consideration? - ANSWERS Contract Who makes the legally enforceable promises in a unilateral insurance policy? - ANSWERS Insurance company Which of these is not a type of agent authority? - ANSWERS Principal Which of these is considered a statement that is assured to be true in every respect? - ANSWERS Warranty When must insurable interest exist for a life insurance contract to be valid? - ANSWERS Inception of the contract Which of these is NOT considered to be an element of an insurance contract - ANSWERS Negotiating What type of insurance offers permanent life coverage with premiums that are payable for life? - ANSWERS Whole Life When is the face amount of a Whole Life policy paid? - ANSWERS When the insured dies or at the policy's maturity date. A life insurance policy that provides a policyowner with cash value along a level face amount is called.. - ANSWERS Whole Life Which statement about whole life policy is correct? - ANSWERS Cash Value May be borrowed against Which of these Characteristics is consistent with a Straight Life policy - ANSWERS Premiums are payable for as long as their is insurance coverage in force. Tonya would like to be4 assured $1