L/H Chapter 1

What year was the McCarran-Ferguson Act enacted? 1944 1945 1946 1947

1945

Which of the following requires insurers to disclose when an applicant's consumer or credit history is being investigated: 1970-Fair Credit Reporting Act 1959-Intervention by (SEC) The Securities and Exchange Commmission 1999-Financial Services Modernization Act 1945-The McCarran-Ferguson Act

1970-Fair Credit Reporting Act

What type of reinsurance contract involves two companies automatically sharing their risk exposure? Arbitrage Facultative Excess Treaty

Treaty

When a policy pays dividends to its policyholders, it is said to be profitable mutual nonparticipating participating

participating

Who elects the governing body of a mutual insurance company? chairman of the board bondholders stockholders policyholders

policyholders

Which of these describe a participating insurance policy? policyowners are entitled to receive dividends policyonwers pay assessments for company losses stock companies allow their policyowners to share any company earnings policyowners are not entitled to vote for members of the board of directors

policyowners are entitled to receive dividends

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: credits reserves surplus retention

reserves

A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a treaty insurer risk retention group risk assumption group captive insurer

risk retention group

An insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the: State Guaranty Association Fair Labor Standards Board Fair Credit Reporting Act National Association of Insurance Commissioners

Fair Credit Reporting Act

What is the name of the law that requires insurers to disclose information gathering practices and where the information was obtained? State Guaranty Association Fair Labor Standards Board Fair Credit Reporting Act National Association of Insurance Commissioners

Fair Credit Reporting Act

At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? Before the appointment is scheduled Upon completion of the application At the policy's delivery When the insurer receives the MIB report

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: a fraternal benefit society a stock insurer a mutual insurer the Life and Health Insurance Guaranty Association

a fraternal benefit society

Dividends payable to a policyowner are: guaranteed declared by the State declared by the insurance company strictly regulated

declared by the insurance company