Chapter 1 (215) Xcel

What year was the McCarran-Ferguson Act enacted?

1945

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

Who elects the governing body of a mutual insurance company?

policyholders

A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a:

risk retention group

What type of reinsurance contract involves two companies automatically sharing their risk exposure?

The correct answer is "Treaty". Under treaty reinsurance, each party automatically accepts specific percentages of the insurer's business.

When a policy pays dividends to its policyholders, it is said to be

The correct answer is "participating". A participating policy is one in which insurance policies pay out dividends to the policyholders.

At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act?

Upon completion of the application