XCEL Chapter 1 - Basic Principles – UPDATED Questions with
100% Verified Answers
XCEL Chapter 1 - Basic Principles
Study Questions and Answers
Q1 The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT
A insurance sales calls because Insurance calls are not exempt from the no not call registry
Q2 Karen is a producer who has obtained personal information about a client without having a legitimate
reason to do so. Under the McCarran-Ferguson Act, what is the minimum penalty for this?
A $10,000
Q3 A plan in which an employer pays insurance benefits from a fund derived(borrowed) from the employer's
current revenues(pay) is called
A A self-funded plan
Q4 A nonparticipating policy will
A not pay dividends because policyholders do not participate in receiving dividends
Q5 A type of insurer that is owned by its policyowners is called
A Mutual
Q6 Fraternal Benefit Society has each of the following characteristics EXCEPT
A Exist For profit
Q7 A life insurance company has transferred some of its risk to another insurer. The insurer assuming the risk
is called the
A reinsurer; make transfer arrangements to another insurer.
Q8 An insurer's claim settlement practices are regulated by the
A State insurance departments
Q9 What is the primary purpose of a rating service company such as A.M Best?
A Determine financial strength of an insurance company
XCEL Chapter 1 - Basic Principles 1
100% Verified Answers
XCEL Chapter 1 - Basic Principles
Study Questions and Answers
Q1 The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT
A insurance sales calls because Insurance calls are not exempt from the no not call registry
Q2 Karen is a producer who has obtained personal information about a client without having a legitimate
reason to do so. Under the McCarran-Ferguson Act, what is the minimum penalty for this?
A $10,000
Q3 A plan in which an employer pays insurance benefits from a fund derived(borrowed) from the employer's
current revenues(pay) is called
A A self-funded plan
Q4 A nonparticipating policy will
A not pay dividends because policyholders do not participate in receiving dividends
Q5 A type of insurer that is owned by its policyowners is called
A Mutual
Q6 Fraternal Benefit Society has each of the following characteristics EXCEPT
A Exist For profit
Q7 A life insurance company has transferred some of its risk to another insurer. The insurer assuming the risk
is called the
A reinsurer; make transfer arrangements to another insurer.
Q8 An insurer's claim settlement practices are regulated by the
A State insurance departments
Q9 What is the primary purpose of a rating service company such as A.M Best?
A Determine financial strength of an insurance company
XCEL Chapter 1 - Basic Principles 1
