LIFE AND HEALTH INSURANCE 2024 EXAM
STUDY QUESTIONS WITH CORRECT ANSWERS
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I Wish You the Best in Your Studies and Exam Revision.
, What year was the McCarren-Ferguson Act enacted? - Answer>>>1945
Which of the following requires insurers to disclose when an applicant's consumer or credit
history is being investigated? - Answer>>>1070 Fair Credit Reporting Act
A nonprofit incorporated society that does not have capital stock and operates for the sole benefit
of its members is known as: - Answer>>>fraternal benefit society
What type of reinsurance contract involves two companies automatically sharing their risk
exposure? - Answer>>>treaty
Who elects the governing body of a mutual insurance company? - Answer>>>policy holders
At what point must a life insurance applicant be informed of their rights that fall under the Fair
Credit Reporting Act? - Answer>>>Upon completion of the application
What is the name of the law that requires insurers to disclose information gathering practices and
where the information was obtained - Answer>>>Fair Credit Report
A group-owned insurance company that is formed to assume and spread the liability risks of its
members is known as a - Answer>>>risk retention group
Which of these describes a participating life insurance policy? - Answer>>>Policyowners are
entitled to receive dividends
An insurance applicant MUST be informed of an investigation regarding his/her reputation and
character according to the - Answer>>>Fair Credit Reporting Act
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 - Answer>>>reserves
Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first six
months. Q dies suddenly and the beneficiary is paid $500,000. This exchange of unequal values
reflects which of the following insurance contract features? - Answer>>>Aleatory
In an insurance contract the insurer is the only party who makes a legally enforceable promise.
What kind of contract is this? - Answer>>>Unilateral
STUDY QUESTIONS WITH CORRECT ANSWERS
(GUARANTEED PASS)| RATED A+
I Wish You the Best in Your Studies and Exam Revision.
, What year was the McCarren-Ferguson Act enacted? - Answer>>>1945
Which of the following requires insurers to disclose when an applicant's consumer or credit
history is being investigated? - Answer>>>1070 Fair Credit Reporting Act
A nonprofit incorporated society that does not have capital stock and operates for the sole benefit
of its members is known as: - Answer>>>fraternal benefit society
What type of reinsurance contract involves two companies automatically sharing their risk
exposure? - Answer>>>treaty
Who elects the governing body of a mutual insurance company? - Answer>>>policy holders
At what point must a life insurance applicant be informed of their rights that fall under the Fair
Credit Reporting Act? - Answer>>>Upon completion of the application
What is the name of the law that requires insurers to disclose information gathering practices and
where the information was obtained - Answer>>>Fair Credit Report
A group-owned insurance company that is formed to assume and spread the liability risks of its
members is known as a - Answer>>>risk retention group
Which of these describes a participating life insurance policy? - Answer>>>Policyowners are
entitled to receive dividends
An insurance applicant MUST be informed of an investigation regarding his/her reputation and
character according to the - Answer>>>Fair Credit Reporting Act
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 - Answer>>>reserves
Q purchases a $500,000 life insurance policy and pays $900 in premiums over the first six
months. Q dies suddenly and the beneficiary is paid $500,000. This exchange of unequal values
reflects which of the following insurance contract features? - Answer>>>Aleatory
In an insurance contract the insurer is the only party who makes a legally enforceable promise.
What kind of contract is this? - Answer>>>Unilateral
