1-BASIC PRINCIPLES OF LIFE HEALTH INSURANCE AND ANNUITIES

Front

Which of these describes a participating insurance policy? Options: 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

Back

Policy owners are entitled to receive dividends

Answer explanation

Front

A Nonprofit incorporated society that does not have capital stock and operates for the sole benefit of its members is known as:

Back

A Fraternal Benefit Society

Answer explanation

Front

Dividends payable to a policyowner are

Back

declared by the Insurance Company

Answer explanation

Front

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

Back

Treaty

Front

An Insurance applicant MUST be informed of an investigation regarding his/her reputation and character according to the:

Back

Fair Credit Reporting Act

Front

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

Back

1970 - Fair Credit Reporting Act

Front

Who elects the governing body of a mutual insurance company?

Back

Policyholders

Front

When a policy pays dividend to a policyholder, it is said to be

Back

participating

Front

Which of these describe a participating Insurance policy? Options: 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

Back

Policy owners are entitled to receive dividends

Front

What is the name of the law that requires insurers to disclose information gathering practices and where the information was obtained?

Back

Fair Credit Reporting Act