Xcel ch 1

what type of ensure that is owned by its policyowners is called

Mutual

Karen is a producer who has attained personal information about a client without having a legitimate reason to do so. Under the mccarran-ferguson ACT, what is the minimum penalty for this?

$10,000 or up to one year in jail

Ken is a producer who has obtained consumer information reports under false pretenses. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken?

$5,000 and 1t year imprisonment

an insurer's claim settlement practices are regulated by the

State Insurance departments

a plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called

a self-funded plan

why are dividends from a mutual insurer not subject to taxation?

because Dividends are considered to be a return of Premium

fraternal benefit Society has each of the following characteristics EXCEPT

exist for profit CORRECT: Incorporated, without capital stock, exist for the benefit of it's members they are not-for-profit entities which exist for the benefit of it's members

what kind of life insurance policy issued by a mutual insurer provides a return of divisible Surplus?

participating life insurance policy

the fair credit and Reporting Act main purpose is to

protect consumers with guidelines regarding credit reporting and distribution