BASIC PRINCIPLES OF LIFE AND HEALTH INSURANCE AND ANNUITIES QUESTION AND ANSWERS ALL VALIDATED AND VERIFIED

BASIC PRINCIPLES OF LIFE AND HEALTH
INSURANCE AND ANNUITIES QUESTION
AND ANSWERS ALL VALIDATED AND
VERIFIED.

Companies that sell more than one type of insurance are
multi-line insurers
property and causalty
mutual company
life company - CorreCt Answers -multi-line insurers


Which one of the following statements about participating life insurance is
true?
Policyowners may be entitled to receive dividends
Policyowners are assessed monthly for losses
The insured must be the policyowner
The insurer must be a stock company - CorreCt Answers -Policyowners
may be entitled to receive dividends


Why are dividends from a mutual insurer not subject to taxation?
Because insurance premiums are tax-deductible
Because dividends are already subject to capital gains
Because dividends are payable directly to the policyholder
Because dividends are considered to be a return of premium - CorreCt
Answers -Because dividends are considered to be a return of premium

, A plan in which an employer pays insurance benefits from a fund derived
from the employer's current revenues is called
A self-derived plan
A multiple-employer plan
A blanket plan
A self-funded plan - CorreCt Answers -A self-funded plan


Which law requires fair and accurate reporting of information about
consumers?
Financial Services Modernization Act
Fair Credit Reporting Act
McCarran-Ferguson Act
Unfair Trade Practices Act - CorreCt Answers -Fair Credit Reporting Act


The State Guaranty Association guarantees
that a policy will be issued
that a claim will be paid if an insurer becomes insolvent
that dividends will be paid
the rate of return on a policy - CorreCt Answers -that a claim will be paid if
an insurer becomes insolvent


A nonparticipating policy will
provide a return of premium
provide tax advantages