USAA TEST EXAM 2024-252 QUESTIONS WITH VERIFIED SOLUTIONS ALREADY GRADED A+

What type of reinsurance contract involves two companies automatically sharing their risk exposure? treaty 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 is the name of the law that requires insurers to disclose information gathering practices and where the information was obtained? Fair Credit Reporting Act 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: reserves A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of its members is known as: fraternal benefit society If a contract of adhesion contains questionable language, to whom would the interpretation be in favor of? insured What is a warranty? is a statement guaranteed to be true A policy of adhesion can only be modified by whom? insurance company Stranger Originated Life Insurance (STOLI) has been found to be in violation of which of the following contractual elements? Legal Purpose (Insurable Interest) Which of these is considered a statement that is assured to be true in every respect? warranty Which of these is NOT a type of agent authority? principal The Consideration clause of an insurance contract includes: the schedule and amount of premium payments What is the consideration given by an insurer in the Consideration clause of the life policy? Promise to pay a death benefit to a named beneficiary Who makes the legally enforceable promises in a unilateral insurance policy? insurance company