XCEL Life Only Final Exam CO Questions and Answers 100% Pass

XCEL Life Only Final Exam CO Questions and Answers 100% Pass What type of insurance company sells insurance for a profit? - Correct Answer ️️ - Commercial Insurers (Private Insurance Companies) What type of insurance company sells more than one line of insurance? - Correct Answer ️️ -Multi-line insurer What type of companies are organized and incorporated under state laws for the purpose of making a profit for its stockholders? (shareholders) - Correct Answer ️️ - Stock Companies What type of companies are owned by their policyholders? - Correct Answer ️️ -Mutual Companies (Mutual insurers, Participating Insurers) a sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves). - Correct Answer ️️ -Dividend Why are dividends from a mutual insurer not subject to taxation? - Correct Answer ️️ - Because this type of dividend is considered to be a return of premium. If a company operates as both a participating and nonparticipating insurer, they known as a _________. - Correct Answer ️️ -Mixed Insurer What is a mutual company that operates based on loss-sharing by group members where no premium is payable in advance? - Correct Answer ️️ -Pure Assessment Mutual Company What is a mutual company that charges a premium at the beginning of the policy period? - Correct Answer ️️ -Advance Premium Assessment Mutual What is a mutual company that is a "special type"? (nonprofit religious, ethnic or charitable organizations that provide insurance solely to their members). - Correct Answer ️️ -Fraternal Benefit Societies What is a mutual company formed by a group of people in the same industry or profession? - Correct Answer ️️ -Risk Retention Groups What type of insurers are unincorporated groups of individual members that provide insurance for other members through indemnity contracts? (Members providing insurance for other members) - Correct Answer ️️ -Reciprocal Insurers What type of insurers make arrangements with other insurance companies to transfer a portion of their risk to the reinsurer ? - Correct Answer ️️ -Reinsurer (the reinsurer is the company taking the risk, the ceding company is the company giving the risk.) What type of insurer is established and owned by the parent company to insure the parent company's loss exposure? - Correct Answer ️️ -Captive insurer What type of insurer sells industrial insurance? - Correct Answer ️️ -Home Service Insurer What types of insurance are Social Security (OASDI), Medicare, Medicaid, SGLI/VGLI, and Tri-Care? - Correct Answer ️️ -Government Insurance How is insurance sold? - Correct Answer ️️ -Through distribution systems. What is the system in which career agents are hired to work at a specific location to sell insurance? - Correct Answer ️️ -Career Agency System What is the system in which agents work for an indep