NORTH CAROLINA XCEL TESTING LIFE & HEALTH INSURANCE EXAM STUDY|UPDATED&VERIFIED|100% SOLVED|GUARANTEED SUCCESS

Which of the following requires insurers to disclose when an applicant's consumer or credit history is being investigated: 1970 - Fair Credit Reporting Act What type of reinsurance contract involves two companies automatically sharing their risk exposure? Treaty What is the name of the law that requires insurers to disclose information gathering practices and where the information was obtained? Fair Credit Reporting Act Who elects the governing body of a mutual insurance company? policyholders The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future obligations to its policyholders is called: reserves A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a: risk retention group What year was the McCarran-Ferguson Act enacted? 1945 Which of these describe a participating life insurance policy? Policyowners are entitled to receive dividends At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? Upon completion of the application A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of its members is known as: a fraternal benefit society An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the: Fair Credit Reporting Act Which of the following consists of an offer, acceptance, and consideration? Contract Which of these is NOT a type of agent authority? Principal E and F are business partners. Each takes out a $500,000 life insurance policy on the other, naming himself as primary beneficiary. E and F eventually terminate their business, and four months later E dies. Although E was married with three children at the time of death, the primary beneficiary is still F. However, an insurable interest no longer exists. Where will the proceeds from E's life insurance policy be directed to? F All of the following are considered to be typical characteristics describing the nature of an insurance contract, EXCEPT: Bilateral The part of a life insurance policy guaranteed to be true is called a(n): warranty A life insurance arrangement which circumvents insurable interest statutes is called: Investor-Originated Life Insurance Taking receipt of premiums and holding them for the insurance company is an example of: Fiduciary responsibility Which of these arrangements allows one to bypass insurable interest laws? Investor-Originated Life Insurance Insurance contracts are known as ____ because certain future conditions or acts must occur before any claims can be paid. conditional When third-party ownership is involved, applicants who also happen to be the stated primary beneficiary are required to have: insurable interest in the proposed insured Statements made on an insurance application that are believed to be true to the best of the applicant's knowledge are called: representations If a contract of adhesion contains complicated language, to whom would the interpretation be in favor of? Insured At what point does an informal contract become binding? When one party makes an offer and the other party accepts that offer