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MA Producer Life Insurance Exam Prep Questions and Answers (100% Pass)
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MA Producer Life Insurance Exam Prep Questions and Answers (100% Pass)
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©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AMMA Producer Life Insurance Exam Prep
Questions and Answers (100% Pass)
Which of the following is an example of an unauthorized insurance company in Illinois?
Company C, a Florida-based company that does not hold a certificate of authority
Illinois but whose products are approved by the Illinois insurance department
Company D, a Canadian company that holds a certificate of authority in Illinois
Company B, an Iowa-based company that does not hold a certificate of authority in
Illinois and sells products that are not approved by the Illinois insurance department
Company A, an Illinois-based company that holds a certificate of authority in Illinois and
32 other states - ✔️✔️Company B, an Iowa-based company that does not hold a
certificate of authority in Illinois and sells products that are not approved by the Illinois
insurance department
All of the following statements regarding the career agency distribution system are
correct EXCEPT:
There are two types, the general agency system and the managerial system.
The managerial form of career agency system uses company employees as the agency
managers.
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,©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
Personal producing general agents (PPGAs) are commonly hired to manage career
agencies.
It uses agents who primarily if not exclusively represent one insurer. - ✔️✔️Personal
producing general agents (PPGAs) are commonly hired to manage career agencies.
Why would a large manufacturer choose to self-insure rather than buy an insurance
policy from an insurance company?
to avoid having to comply with state insurance laws dealing with employee benefits
so they can pick and choose which losses they cover
to shelter company cash from federal taxation
to save insurance premiums by paying relatively minor losses out of company funds -
✔️✔️to save insurance premiums by paying relatively minor losses out of company funds
The federal Risk Retention Act of 1986 contains guidelines for which of the following
entities?
risk retention groups
Fraternal insurance companies
reinsurance companies
surplus lines insurance companies - ✔️✔️risk retention groups
To be considered insurable, a risk (and the potential loss it represents) must meet which
one of the following requirements?
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, ©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Wednesday, July 31, 2024 9:10 AM
The loss must be definable as to time, cause, and location.
The loss must be certain to occur.
The loss must be catastrophic.
The loss cannot be measurable. - ✔️✔️The loss must be definable as to time, cause, and
location.
Buying life or health insurance is an example of which risk management technique?
risk transfer
risk retention
risk reduction
risk avoidance - ✔️✔️risk transfer
Lucy is applying for an individual health insurance policy and discloses that she is
diabetic, which is considered which of the following?
a morale hazard
a moral hazard
a critical hazard
a physical hazard - ✔️✔️a physical hazard
As a risk management technique, which of the following best illustrates risk transfer?
Sheila refuses to drink alcoholic beverages if she expects to drive a car afterward.
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