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XCEL INSURANCE LICENSING EXAM LATEST 2024 WITH ACTUAL QUESTIONS AND CORRECT VERIFIED ANSWERS/ALREADY GRADED A+ 100% GUARANTEED TO PASS CONCEPTS(ALL WHAT YOU NEED) LATEST EDITION 2024 $27.99
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XCEL INSURANCE LICENSING EXAM LATEST 2024 WITH ACTUAL QUESTIONS AND CORRECT VERIFIED ANSWERS/ALREADY GRADED A+ 100% GUARANTEED TO PASS CONCEPTS(ALL WHAT YOU NEED) LATEST EDITION 2024
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Course
XCEL INSURANCE LICENSING
Institution
XCEL INSURANCE LICENSING
XCEL INSURANCE LICENSING EXAM LATEST 2024 WITH
ACTUAL QUESTIONS AND CORRECT VERIFIED
ANSWERS/ALREADY GRADED A+ 100% GUARANTEED
TO PASS CONCEPTS(ALL WHAT YOU NEED) LATEST
EDITION 2024
XCEL INSURANCE LICENSING EXAM LATEST 2024 WITH
ACTUAL QUESTIONS AND CORRECT VERIFIED
ANSWERS/ALREADY GRADED A+ 100% GUARANTEED
TO PASS CONCEPTS(ALL WHAT YOU NEED) LATEST
EDITION 2024
One important function of an insurance company is to identify and sell to
potential customers. Which of these BEST describes this function?
A) Underwriting
B) Marketing
C) Reinsurance
D) Regulation - ANSWER-B) Marketing
Marketing can be best defined as identifying and selling to potential customers.
Which of the following is NOT a characteristic of reinsurance?
A) Increases the unearned premium reserve
B) Protects against a very large claim
C) Enables insurer to meet certain objectives
D) A specialized branch of the insurance industry - ANSWER-A) All of these are
reinsurance features except
,"Increase the unaccredited Premium reserve".
Which of the following is a type of insurance where an insurer transfers loss
exposures from policies written for its insureds?
A) Treaty insurance
B) Reinsurance
C) Mutual insurance
D) Captive insurance - ANSWER-B) Reinsurance
Reinsurance is an arrangement by which an
insurance company transfers a portion of a risk it has assumed to another
insurer.
AAA Insurance Company has transferred a portion of its loss exposure to
BBB Insurance Company. In this reinsurance transaction, what is AAA
Insurance Company called?
A) Captive insurer
B) Tertiary insurer
C) Primary insurer
D) Secondary insurer - ANSWER-C) Primary insurer
In a reinsurance agreement, the insurance company that transfers its loss
exposure to another insurer is called the primary insurer.
An insurer owned by its policyholders is called a
,A) stock insurer
B) reinsurer
C) mutual insurer
D) multi-line insurer - ANSWER-C) Mutual insurer
The correct answer is "mutual insurer". A mutual insurer is owned by its
policyholders.
A participating company is also referred to as which type of insurer?
A) Re-insurer
B) Mutual insurer
C) Domestic insurer
D) Reciprocal insurer - ANSWER-B) Mutual insurer
A mutual insurer is also referred to as a participating company
Which of the following is NOT a benefit of insurance?
A) Losses due to fraud are eliminated
B) Reduces the uncertainty of loss exposures
C) Makes a loss whole again
D) Source of investment funds - ANSWER-A) 'Losses due to fraud are
eliminated" is NOT a benefit of insurance
When a mutual insurer becomes a stock company, the process is called
, A) Mutualization
B) Demutualization
C) Reinsurance
D) Reorganization - ANSWER-B) Demutualization
Which of the following statements regarding a life insurance policy dividend is
TRUE?
A) It represents a refund of overcharged premium in a non-participating whole
life policy
B) It represents the build-up of cash value in a permanent insurance policy
C) It is the distribution of excess of funds accumulated by the insurer on
participating policies - ANSWER-C) It is the distribution of excess of funds
accumulated by the insurer on participating policies
Dividends paid to policyowners of participating contracts represent a refund of
excess premiums charged. Remember, since the premiums were initially paid
with after-tax dollars, there is no income tax consequence to the policyowner.
John owns an insurance policy that gives him the right to share in the insurer's
surplus. What kind of policy is this?
A) Nonparticipating
B) Participating
C) Contributory
D) Surplus - ANSWER-B) Participating
Which of the following refers to a condition that may increase the chance of a
loss?
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