North Carolina XCEL Testing Life & Health Insurance Exam Study Quetsions and Answers (100% Pass)
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Course
North Carolina XCEL
Institution
North Carolina XCEL
North Carolina XCEL Testing Life & Health
Insurance Exam Study Quetsions and
Answers (100% Pass)
Which of the following requires insurers to disclose when an applicant's
consumer or credit history is being investigated: - Answer️️ -1970 - Fair
Credit Reporting Act
What type of reinsurance...
North Carolina XCEL Testing Life & Health
Insurance Exam Study Quetsions and
Answers (100% Pass)
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
sharing their risk exposure? - Answer✔️✔️-Treaty
What is the name of the law that requires insurers to disclose information
gathering practices and where the information was obtained? - Answer✔️✔️-
Fair Credit Reporting 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 have on
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 retention
group
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 rights
that fall under the Fair Credit Reporting Act? - Answer✔️✔️-Upon
completion of the application
A nonprofit incorporated society that does not have capital stock and
operates for the sole benefit of its members is known as: - Answer✔️✔️-a
fraternal benefit society
An insurance applicant MUST be informed of an investigation regarding
his/her reputation and character according to the: - Answer✔️✔️-Fair Credit
Reporting 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
E was 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 characteristics describing
the nature of an insurance contract, EXCEPT: - Answer✔️✔️-Bilateral
The part of a life insurance policy guaranteed to be true is called a(n): -
Answer✔️✔️-warranty
A life insurance arrangement which circumvents insurable interest statutes
is called: - Answer✔️✔️-Investor-Originated Life Insurance
Taking receipt of premiums and holding them for the insurance company
is an example of: - Answer✔️✔️-Fiduciary responsibility
Which of these arrangements allows one to bypass insurable interest laws?
- Answer✔️✔️-Investor-Originated Life Insurance
Insurance contracts are known as ____ because certain future conditions or
acts must occur before any claims can be paid. - Answer✔️✔️-conditional
When third-party ownership is involved, applicants who also happen to be
the stated primary beneficiary are required to have: - Answer✔️✔️-insurable
interest in the proposed insured
Statements made on an insurance application that are believed to be true to
the best of the applicant's knowledge are called: - Answer✔️✔️-
representations
If a contract of adhesion contains complicated language, to whom would
the interpretation be in favor of? - Answer✔️✔️-Insured
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