XcelSolutions Pennsylvania Insurance Test Verified Guide
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Xcel Solution Pennsylvania Insurance Tst Verified
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Xcel Solution Pennsylvania Insurance Tst Verified
XcelSolutions Pennsylvania Insurance Test Verified Guide
Stock Insurer
️ A nonparticipating company is sometimes referred to as a stock insurer.
Insurance Sales Calls
️ The Do Not Call Registry offers exemptions for calls placed from all the following EXCEPT:
telemarketers selling...
XcelSolutions Pennsylvania Insurance Test Verified Guide
Stock Insurer
✔️ A nonparticipating company is sometimes referred to as a stock insurer.
Insurance Sales Calls
✔️ The Do Not Call Registry offers exemptions for calls placed from all the following EXCEPT:
telemarketers selling products not of interest.
$5,000
✔️ If Ken, a producer, has obtained Consumer Information Reports under false pretenses, under the
Fair Credit Reporting Act, the maximum penalty he may face is $5,000.
A self-funded plan
✔️ A plan in which an employer pays insurance benefits from a fund derived from the employer's
current revenues is known as a self-funded plan.
Liquidity
✔️ An insurer's capability to make unpredictable payouts to policyholders is referred to as liquidity.
Provide death benefits
✔️ The primary reason for purchasing life insurance is to provide death benefits.
Because dividends are considered to be a return of premium
✔️ Dividends from a mutual insurer are not subject to taxation because they are seen as a return of
premium.
State Insurance Departments
✔️ An insurer's claim settlement practices are regulated by State Insurance Departments.
,$10,000
✔️ Under the McCarran-Ferguson Act, the minimum penalty that Karen, who has obtained personal
information about a client without a legitimate reason, may face is $10,000.
Reinsurer
✔️ When a life insurance company transfers some of its risk to another insurer, the insurer taking on
that risk is called a reinsurer.
Transference
✔️ The process of risk in insurance is referred to as transference.
Law of Large Numbers
✔️ Insurers utilize the Law of Large Numbers to predict the increase of individual risks.
Losing money at a casino
✔️ All of the following are examples of pure risk EXCEPT: losing money at a casino.
Law of large numbers and risk pooling
✔️ Insurance companies assess risk exposure through the Law of Large Numbers and risk pooling.
Doctors pooling their money to cover malpractice exposure
✔️ An example of risk sharing is when doctors pool their money to cover malpractice exposure.
Peril
✔️ The immediate specific event causing loss and creating risk is known as a peril.
Claim Forms
✔️ All of the following are elements of an insurance policy EXCEPT: claim forms.
,Representation
✔️ An applicant's statements regarding their occupation, hobbies, and personal health history are
considered representations.
Law of Agency
✔️ The authority granted to a licensed producer is provided through the Law of Agency.
Express Authority
✔️ When the principal grants authority to the agent in writing, it is referred to as express authority.
Unilateral
✔️ An insurance contract is considered unilateral because the insurer is the only party legally obligated
to perform.
Contain an offer and acceptance
✔️ For a contract to be valid, it must contain an offer and acceptance.
Business owner and business client
✔️ Insurable interest does NOT exist in the relationship between a business owner and a business
client.
All of these are valid options for an Adjustable Life Policy EXCEPT
✔️ A nonforfeiture option can be used to increase the death benefit.
At a predetermined date or age, regardless of the insured's health ✔️A Renewable Term Life Insurance
policy can be renewed
Child term rider ✔️Jonas is a whole life insurance policyowner and would like to add coverage for his
two children Which of the following products would allow him to accomplish this?
, Provide funds to help pay taxes ✔️How are survivorship life insurance policies helpful in estate
planning?
When a whole life policy is surrendered, income taxes may be owed ✔️All of these statements
concerning whole life insurance are false EXCEPT
Term, whole, and universal life insurance ✔️What type of life insurance are normally used for key
employee indemnification?
a policy that is paid up after only one payment ✔️A single premium cash value policy can be described
as
Group Policy ✔️A business will typically use which type of life insurance to cover their employees?
The premium for a Modified whole life policy is ✔️lower than the typical whole life policy during the
first few years and then higher than typical for the remainder
A Modified Endowment Contract (MEC) is best described as ✔️A life insurance contract which
accumulated cash values higher than the IRS will allow
Which of the following policies does NOT build cash value? ✔️Term
A life insurance policy that has premiums fully paid up within a stated time period is called ✔️Limited
payment insurance
Joe has a life insurance policy that has a face amount of $300,000. After a number of years, the policy's
cash value accumulates to $50,000 and the face amount becomes $350,000. What kind of policy is this?
✔️Universal Life Policy
A life insurance policy which contains cash values that vary according to its investment performance of
stocks is called ✔️Variable Whole Life
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