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XCEL Chapter 1 2024 RECENT UPDATE TEST PRACTICE MOST TESTED COMPREHENSIVE QUESTIONS AND VERIFIED CORRECT ANSWERS GRADE A+ GET IT RIGHT$17.99
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XCEL Chapter 1 2024 RECENT UPDATE
TEST PRACTICE MOST TESTED COMPREHENSIVE
QUESTIONS AND VERIFIED CORRECT ANSWERS
GRADE A+ GET IT RIGHT
Why are dividends from a mutual insurer not subject to
taxation?
A. Because insurance premiums are tax-deductible
B. Because dividends are already subject to capital gains
C. Because dividends are payable directly to the policyholder
D. Because dividends are considered to be a return of premium
- (correct answer) Because dividends are considered to be a
return of premium
A nonparticipating company is sometimes called a(n)?
A. alien insurer
B. mutual insurer
C. reinsurer
D. stock insurer - (correct answer) stock insurer
An insurer's claim settlement practices are regulated by the?
, A. Securities and Exchange Commission (SEC)
B. National Association of Claims Adjusters (NACA)
C. National Association of Insurance Commissioners (NAIC)
D. State insurance departments - (correct answer) State
insurance departments
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. divisible surplus life insurance policy
D. straight life insurance policy - (correct answer)
participating life insurance policy
What is the primary purpose of a rating service company such
as A.M Best?
A. Determine which insurer offers the best rates
B. Determine which insurer offers the best policies
C. Determine financial strength of an insurance company
D. Determine which agent to use locally - (correct answer)
Determine financial strength of an insurance company
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