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Worksheets1-BASIC PRINCIPLES OF LIFE HEALTH INSURANCE AND ANNUITIES
Total questions: 15
Worksheet time: 8mins
Which of these describes a participating insurance policy?
Policy owners are entitled to receive dividends
Policyowners pay assessment for company losses
Stock companies allow their policyowners to share in any company earnings
Policyowners are not entitled to vote a members of the board of directors
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
Dividends payable to a policyowner are
Guaranteed
declared by the State
declared by the Insurance Company
strictly regulated
What type of reinsurance contract involves two companies automatically sharing their risk exposure?
Arbitrage
Facultative
Excess
Treaty
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
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
Who Elect the governing body of a mutual insurance company?
Chairman of the board
Bondholders
Stockholders
Policyholders
When a policy pays dividend to a policyholder, it is said to be
profitable
mutual
nonparticipating
participating
Which of these describe a participating Insurance policy?
Policy owners are entitled to receive dividends
Policyowners pay assessments for company losses
Stock companies allow their policyowners to share in any company earnings
Policyowners are entitled to vote for members of the board of directors
What is the name of the law that requires insurers to disclosure information gathering practices and where the information was obtain?
State Guaranty Association
Fair Labor Standards Board
Fair Credit Reporting Act
National Association of Insurance Commissioners
Which of these describes a participating insurance policy?
Policy owners are entitled to receive dividends
Policyowners pay assessments for company losses
Stock companies allow their policyowners to share in any company earnings
Policyowners are entitled to vote for members of the board of directors
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 schedule
Upon completion of the application
At the policy’s delivery
When the insurer receives the MIB report
The stated amount or percent of liquid asset that an insurer must have on hand that will satisfy future obligations to its policyholders is called:
Credits
Reserves
Surplus
Retention
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
What year was the McCarran-Ferguson Act enacted?
1944
1945
1946
1947
