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1. A nonparticipating company is sometimes called a: - A) ️ Stock insurer - B) Mutual insurer - C) Fraternal insurer - D) Reinsurer
2. Fraternal Benefit Society has each of the following characteristics except: - A) Nonprofit status - B) Membersh...
1. A nonparticipating company is sometimes called a:
- A) ✔️ Stock insurer
- B) Mutual insurer
- C) Fraternal insurer
- D) Reinsurer
2. Fraternal Benefit Society has each of the following characteristics except:
- A) Nonprofit status
- B) Membership based on a common bond
- C) Provides benefits to members
- D) ✔️ Exist for profit
3. The Fair Credit and Reporting Act's main purpose is to:
- A) Regulate credit card companies
- B) ✔️ Protect consumers with guidelines regarding credit reporting and distribution
- C) Increase competition among lenders
- D) Provide insurance coverage for credit risks
4. A life insurance company has transferred some of its risk to another insurer. The insurer assuming the
risk is called the:
- A) ✔️ Reinsurer
- B) Primary insurer
- C) Sibling insurer
- D) Participating insurer
5. What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus?
, - A) Nonparticipating life insurance policy
- B) ✔️ Participating life insurance policy
- C) Fixed life insurance policy
- D) Whole life insurance policy
6. What is considered to be the primary reason for buying life insurance?
- A) Accumulate cash value
- B) ✔️ Provide death benefits
- C) Save for retirement
- D) Tax benefits
7. An insurer's ability to make unpredictable payouts to policyowners is called:
- A) Capital
- B) Profitability
- C) ✔️ Liquidity
- D) Solvency
8. The Do Not Call Registry offers exemptions for calls placed from all of the following except:
- A) Political organizations
- B) Charitable organizations
- C) ✔️ Insurance sales calls
- D) Survey organizations
9. Why are dividends from a mutual insurer not subject to taxation?
- A) Because they are treated as income
- B) ✔️ Because dividends are considered to be a return of premium
- C) Because they do not exceed certain thresholds
- D) Because they are earned through investments
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