NJ Health Insurance Exam (XCEL Solutions) Questions and Answers Graded A+

NJ Health Insurance Exam (XCEL Solutions) Questions and Answers Graded A+ Why are dividends from a mutual insurer not subject to taxation? - Correct Answer ️️ - because dividends are considered to be a return of premium ABC insurance company transfers part of their risk to XYZ insurance company. This situation is called - Correct Answer ️️ -reinsurance A nonparticipating company is sometimes called a(n) - Correct Answer ️️ -stock insurer What is considered to be the primary reason for buying life insurance? - Correct Answer ️️ -provide death benefits A(n) _____ company is owned by its shareholders - Correct Answer ️️ -stock A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called - Correct Answer ️️ -a self-funded plan What is the primary purpose of a rating service company such as A.M. Best? - Correct Answer ️️ -determine financial strength of an insurance company 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? - Correct Answer ️️ -$10,000 A nonparticipating policy will - Correct Answer ️️ -not pay dividends A life insurance company has transferred some of its risk to another insurer. The insurer assuming the risk is called the - Correct Answer ️️ -reinsurer Ken is a producer who has obtained Consumer Information Reports under false pretenses. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken? - Correct Answer ️️ -$5,000 A type of insurer that is owned by its policyowners is called - Correct Answer ️️ - mutual Fraternal Benefit Society has each of the following characteristics EXCEPT incorporated without capital stock exists for profit exists for the benefit of its members - Correct Answer ️️ -exists for profit The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT charities political organizations insurance sales calls surveys - Correct Answer ️️ -insurance sales calls What kind of life insurance policy issues by a mutual insurer provides a return of divisible surplus? - Correct Answer ️️ -participating life insurance policy An insurer's ability to make unpredictable payouts to policyowners is called - Correct Answer ️️ -liquidity An insurer's claim settlement practices are regulated by the - Correct Answer ️️ -state insurance departments Which of the following is NOT considered advertising? a rating from a rating service company, such as A.M. Best an illustration a sales presentation direct mailing from an agency - Correct Answer ️️ -a rating from a rating service company, such as A.M. Best The Fair Credit and Reporting Act's main purpose is to - Correct Answer ️️ -protect consumers with guidelines regarding credit reporting and distribution When the principle gives the agent authority in wri