XCEL SOLUTIONS EXAMPREP 2026 TEST
PAPER QUESTIONS AND FULL ANSWERS
◉ Fraternal Benefit Society has each other the following
characteristics except. Answer: exist for profit
◉ The Fair Credit and Reporting Act's main purpose is to. Answer:
protect consumers with guidelines regarding credit reporting and
distribution
◉ A life insurance company has transferred some of its risk to
another insurer. The insurer assuming the risk is called the. Answer:
reinsurer
◉ What kind of life insurance policy issued by a mutual insurer
provides a return of divisible surplus?. Answer: participating life
insurance policy
◉ What is considered to be the primary reason for buying life
insurance?. Answer: provide death benefits
◉ 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. Answer: insurance sales calls
◉ Why are dividends from a mutual insurer not subject to taxation?.
Answer: Because dividends are considered to be a return of
premium
◉ An insurer's claim settlement practices are regulated by the.
Answer: State Insurance Departments
◉ All of the following are examples of pure risk EXCEPT. Answer:
losing money at a casino
◉ Which of the following is considered to be an event or condition
that increases the probability of an insured's loss?. Answer: Hazard
◉ An individual who removes the risk of losing money in the stock
market by never purchasing stocks is said to be engaging in. Answer:
Risk avoidance
◉ The cause of a loss is referred to as. Answer: peril
◉ Insurance represents the process of risk. Answer: transference
PAPER QUESTIONS AND FULL ANSWERS
◉ Fraternal Benefit Society has each other the following
characteristics except. Answer: exist for profit
◉ The Fair Credit and Reporting Act's main purpose is to. Answer:
protect consumers with guidelines regarding credit reporting and
distribution
◉ A life insurance company has transferred some of its risk to
another insurer. The insurer assuming the risk is called the. Answer:
reinsurer
◉ What kind of life insurance policy issued by a mutual insurer
provides a return of divisible surplus?. Answer: participating life
insurance policy
◉ What is considered to be the primary reason for buying life
insurance?. Answer: provide death benefits
◉ 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. Answer: insurance sales calls
◉ Why are dividends from a mutual insurer not subject to taxation?.
Answer: Because dividends are considered to be a return of
premium
◉ An insurer's claim settlement practices are regulated by the.
Answer: State Insurance Departments
◉ All of the following are examples of pure risk EXCEPT. Answer:
losing money at a casino
◉ Which of the following is considered to be an event or condition
that increases the probability of an insured's loss?. Answer: Hazard
◉ An individual who removes the risk of losing money in the stock
market by never purchasing stocks is said to be engaging in. Answer:
Risk avoidance
◉ The cause of a loss is referred to as. Answer: peril
◉ Insurance represents the process of risk. Answer: transference
