XCEL Chapter 1 Exam Review
Question & Answers 2026
Stock insurer - CORRECT ANSWERS ✔✔A non-
participating company is also called
Insurance policy - CORRECT ANSWERS ✔✔Contract
that involves one party which indemnifies another when a
loss arises from an unknown event
Mutual - CORRECT ANSWERS ✔✔A type of insurer
that is owned by its policy owners is called
Because dividends are considered to be a return of
premium - CORRECT ANSWERS ✔✔Why are
dividends from a mutual insurer not subject to taxation?
Participating life insurance policy - CORRECT ANSWERS
✔✔Life insurance policy issued by a mutual insurer
provides a return of divisible surplus
Exist for profit - CORRECT ANSWERS ✔✔Fraternal
Benefit Society does NOT
Reinsurance - CORRECT ANSWERS ✔✔Type of
insurance where an insurer transfers loss exposures from
policies written for its insurers
Question & Answers 2026
Stock insurer - CORRECT ANSWERS ✔✔A non-
participating company is also called
Insurance policy - CORRECT ANSWERS ✔✔Contract
that involves one party which indemnifies another when a
loss arises from an unknown event
Mutual - CORRECT ANSWERS ✔✔A type of insurer
that is owned by its policy owners is called
Because dividends are considered to be a return of
premium - CORRECT ANSWERS ✔✔Why are
dividends from a mutual insurer not subject to taxation?
Participating life insurance policy - CORRECT ANSWERS
✔✔Life insurance policy issued by a mutual insurer
provides a return of divisible surplus
Exist for profit - CORRECT ANSWERS ✔✔Fraternal
Benefit Society does NOT
Reinsurance - CORRECT ANSWERS ✔✔Type of
insurance where an insurer transfers loss exposures from
policies written for its insurers
