Life and Health - South Dakota Exam Questions With Correct Answers

Life and Health - South Dakota Exam
Questions With Correct Answers

Insurers (companies/carriers) - CORRECT ANSWER✔✔-Provide
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insurance coverage by issuing particular insurance policies or contracts.
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Insurance Agencies - CORRECT ANSWER✔✔-Independent sales
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organizations that provide service and distribute insurance policies to
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consumers.


Agents and Producers - CORRECT ANSWER✔✔-Licensed individuals
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representing an insurance company when transacting insurance
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business.


The insurance industry is mostly regulated at the ______ level. -
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CORRECT ANSWER✔✔-State
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This branch writes and passes insurance laws to protect the public -
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CORRECT ANSWER✔✔-Legislative
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This branch interprets the insurance laws. - CORRECT ANSWER✔✔-
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Judicial

,This branch helps to enforce insurance laws - CORRECT ANSWER✔✔-
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Executive


This association provides resources, research, legislative and regulatory
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recommendations and interpretations for state insurance regulators. It | | | | | | | |



has no legal authority; the goal is to promote state uniformity. -
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CORRECT ANSWER✔✔-The National Association of Insurance
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Commissioners (NAIC) |




This type of insurance company is owned by stock holders, where the
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stock holders can elect board members. The board members then elect
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officers to run the company. The stock holders share profit and may
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receive dividends if declared by the directors. The dividends are taxable
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income. - CORRECT ANSWER✔✔-Stock Insurance Company.
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This insurance company is owned by policy holders, or "members". The
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policy holders are the owners, but they do not manage the company.
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The policy holders elect the board, the board elects the officers. When
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declared by the board, the policy holders may receive dividends as
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return of unused premium. These dividends are non-taxable. - CORRECT
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ANSWER✔✔-Mutual Insurance Company
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This is a social organization that engages in charitable activities that
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provide mainly life insurance to its members. Typically the members of
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,religious organizations, loges, order or society. - CORRECT ANSWER✔✔-
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Fraternal Insurers |




The location or jurisdiction where an insurer is formed or incorporated. -
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CORRECT ANSWER✔✔-Domicile
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Domestic Insurer - CORRECT ANSWER✔✔-An insurer doing business in
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the jurisdiction in which it is incorporated.
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Foreign Insurer - CORRECT ANSWER✔✔-An insurance company that is
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incorporated in another state. | | |




Alien Insurer - CORRECT ANSWER✔✔-An insurance company that is
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incorporated outside the United States. | | | |




A _______ insurer is approved to transact insurance in a given state if it
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has been granted a Certificate of Authority from the state's department
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of insurance. - CORRECT ANSWER✔✔-Admitted or Authorized
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A _______ insurer is not authorized to transact insurance in a given
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state. Either by failing to comply with state requirements or by not
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seeking admission. - CORRECT ANSWER✔✔-non-admitted or
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unauthorized

, This Act protects the privacy and accuracy of information in a credit
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check. - CORRECT ANSWER✔✔-Fair Credit Reporting Act (FCRA)
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This act requires that financial institutions and insurance companies are
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required to provide anti-money laundering training to their producers. -
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CORRECT ANSWER✔✔-US Patriot Act and Anti-Money Laundering
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(AML)


"Elimination period may be as short a 0 days for accidents" This is a
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characteristic of... - CORRECT ANSWER✔✔-Short-term disability
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HDHPs are characterized by... - CORRECT ANSWER✔✔-Premiums that
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are significantly lower than other plans.
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This annuity offers no guarantees, and the holder assumes all
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investment risk. - CORRECT ANSWER✔✔-Variable
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Paid-up Additions is a ______ option. - CORRECT ANSWER✔✔-Dividend
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Paid in Cash is a ____ option. - CORRECT ANSWER✔✔-Dividend
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Accumulate at Interest is a ______ option. - CORRECT ANSWER✔✔-
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Dividend