Life Insurance - Basic Principles
Who elects the governing body of a mutual insurance company? - chairman of the board - bondholders - stockholders - policyholders
Policyholders
Which of these describe a participating life insurance policy? - Policyowners are entitled to receive dividends - Policyowners pay assessments for company losses - Stock companies allow their policyowners to share in 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
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 Commission - 1999 - Financial Services Modernization Act - 1945 - The McCarran-Ferguson Act
1970 - Fair Credit Reporting Act
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
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
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
What type of reinsurance contract involves two companies automatically sharing their risk exposure? - Arbitrage - Facultative - Excess - Treaty
Treaty
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
