North Carolina XCEL Testing Life & Health Insuranc
North Carolina XCEL Testing Life & Health Insuranc
Exam (elaborations)
North Carolina XCEL Testing Life & Health Insurance Exam
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North Carolina XCEL Testing Life & Health Insuranc
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North Carolina XCEL Testing Life & Health Insuranc
North Carolina XCEL Testing Life & Health Insurance Exam
Which of the following requires insurers to disclose when an applicant's consumer or credit history is being investigated -Answer: 1970 - Fair Credit Reporting Act
What type of reinsurance contract involves two companies automatically ...
North Carolina XCEL Testing Life & Health Insurance Exam
Which of the following requires insurers to disclose when an applicant'sconsumer or credit history is being
investigated -Answer: 1970 - Fair Credit Reporting Act
What type of reinsurance contract involves two companiesautomatically sharing their
risk exposure? -Answer: Treaty
What is the name of the law that requires insurers to disclose informationgathering practices and where the
information was obtained? -Answer: Fair Credit Re- porting Act
Who elects the governing body of a mutual insurance company? -Answer: policyholders
The stated amount or percent of liquid assets that an insurer must haveon hand that will satisfy future
obligations to its policyholders is called -Answer: reserves
A group-owned insurance company that is formed to assume and spread the liability risks of its members
is known as a -Answer: risk retentiongroup
What year was the McCarran-Ferguson Act enacted? -Answer: 1945
Which of these describe a participating life insurance policy? -Answer:
Policyowners are entitled to receive dividends
At what point must a life insurance applicant be informed of their rightsthat fall under the Fair Credit
Reporting Act? -Answer -Answer: Upon completion of the application
A nonprofit incorporated society that does not have capital stock andoperates for the sole benefit of its
members is known as -Answer -Answer: a fraternal benefit society
An insurance applicant MUST be informed of an investigation regarding his/her reputation and
character according to the -Answer -Answer: Fair CreditReporting Act
Which of the following consists of an offer, acceptance, and consideration? -Answer:
Contract
Which of these is NOT a type of agent authority? -Answer: Principal
E and F are business partners. Each takes out a $500,000 life insurance policy on the other, naming himself as
primary beneficiary. E and F eventually terminate their business, and four months later E dies. Although Ewas
married with three children at the time of death, the primary beneficiary is still F. However, an insurable
interest no longer exists. Where will the proceeds from E's life insurance policy be directed to? -Answer: F
All of the following are considered to be typical characteristicsdescribing the nature of an
insurance contract, EXCEPT -Answer -Answer: Bilateral
, The part of a life insurance policy guaranteed to be true is called a(n) -Answer -Answer: -
warranty
A life insurance arrangement which circumvents insurableinterest statutes is called -
Answer -Answer: Investor-Originated Life Insurance
Taking receipt of premiums and holding them for the insurancecompany is an example of -
Answer -Answer: Fiduciary responsibility
Which of these arrangements allows one to bypass insurableinterest laws? -Answer:
Investor-Originated Life Insurance
Insurance contracts are known as because certain future conditionsor acts must
occur before any claims can be paid. -Answer: conditional
When third-party ownership is involved, applicants who also happen tobe the stated primary beneficiary
are required to have -Answer -Answer: insurable interest inthe proposed insured
Statements made on an insurance application that are believed to betrue to the best of the applicant's
knowledge are called -Answer -Answer: representations
If a contract of adhesion contains complicated language, to whomwould the interpretation be in
favor of? -Answer: Insured
At what point does an informal contract become binding? -Answer: When oneparty makes an offer and
the other party accepts that offer
When must insurable interest exist for a life insurance contract tobe valid? -Answer: Inception of
the contract
A life insurance policy would be considered a wagering contract WITH-OUT -Answer -Answer: insurable
interest
what is a warranty? -Answer: is a statement guaranteed to be true
Which of these is NOT considered to be an element of aninsurance contract? -Answer:
negotiating
Who makes the legally enforceable promises in a unilateralinsurance policy? -Answer:
Insurance company
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