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XcelSolutions Pennsylvania Insurance Test Verified Guide

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XcelSolutions Pennsylvania Insurance Test Verified Guide Stock Insurer ️ A nonparticipating company is sometimes referred to as a stock insurer. Insurance Sales Calls ️ The Do Not Call Registry offers exemptions for calls placed from all the following EXCEPT: telemarketers selling...

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  • August 15, 2024
  • 36
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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  • xcelsolutions pennsylvania insurance test verified

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  • Xcel Solution Pennsylvania Insurance Tst Verified
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XcelSolutions Pennsylvania Insurance Test Verified Guide


Stock Insurer

✔️ A nonparticipating company is sometimes referred to as a stock insurer.



Insurance Sales Calls

✔️ The Do Not Call Registry offers exemptions for calls placed from all the following EXCEPT:
telemarketers selling products not of interest.



$5,000

✔️ If Ken, a producer, has obtained Consumer Information Reports under false pretenses, under the
Fair Credit Reporting Act, the maximum penalty he may face is $5,000.



A self-funded plan

✔️ A plan in which an employer pays insurance benefits from a fund derived from the employer's
current revenues is known as a self-funded plan.



Liquidity

✔️ An insurer's capability to make unpredictable payouts to policyholders is referred to as liquidity.



Provide death benefits

✔️ The primary reason for purchasing life insurance is to provide death benefits.



Because dividends are considered to be a return of premium

✔️ Dividends from a mutual insurer are not subject to taxation because they are seen as a return of
premium.



State Insurance Departments

✔️ An insurer's claim settlement practices are regulated by State Insurance Departments.

,$10,000

✔️ Under the McCarran-Ferguson Act, the minimum penalty that Karen, who has obtained personal
information about a client without a legitimate reason, may face is $10,000.



Reinsurer

✔️ When a life insurance company transfers some of its risk to another insurer, the insurer taking on
that risk is called a reinsurer.



Transference

✔️ The process of risk in insurance is referred to as transference.



Law of Large Numbers

✔️ Insurers utilize the Law of Large Numbers to predict the increase of individual risks.



Losing money at a casino

✔️ All of the following are examples of pure risk EXCEPT: losing money at a casino.



Law of large numbers and risk pooling

✔️ Insurance companies assess risk exposure through the Law of Large Numbers and risk pooling.



Doctors pooling their money to cover malpractice exposure

✔️ An example of risk sharing is when doctors pool their money to cover malpractice exposure.



Peril

✔️ The immediate specific event causing loss and creating risk is known as a peril.



Claim Forms

✔️ All of the following are elements of an insurance policy EXCEPT: claim forms.

,Representation

✔️ An applicant's statements regarding their occupation, hobbies, and personal health history are
considered representations.



Law of Agency

✔️ The authority granted to a licensed producer is provided through the Law of Agency.



Express Authority

✔️ When the principal grants authority to the agent in writing, it is referred to as express authority.



Unilateral

✔️ An insurance contract is considered unilateral because the insurer is the only party legally obligated
to perform.



Contain an offer and acceptance

✔️ For a contract to be valid, it must contain an offer and acceptance.



Business owner and business client

✔️ Insurable interest does NOT exist in the relationship between a business owner and a business
client.



All of these are valid options for an Adjustable Life Policy EXCEPT

✔️ A nonforfeiture option can be used to increase the death benefit.



At a predetermined date or age, regardless of the insured's health ✔️A Renewable Term Life Insurance
policy can be renewed



Child term rider ✔️Jonas is a whole life insurance policyowner and would like to add coverage for his
two children Which of the following products would allow him to accomplish this?

, Provide funds to help pay taxes ✔️How are survivorship life insurance policies helpful in estate
planning?



When a whole life policy is surrendered, income taxes may be owed ✔️All of these statements
concerning whole life insurance are false EXCEPT



Term, whole, and universal life insurance ✔️What type of life insurance are normally used for key
employee indemnification?



a policy that is paid up after only one payment ✔️A single premium cash value policy can be described
as



Group Policy ✔️A business will typically use which type of life insurance to cover their employees?



The premium for a Modified whole life policy is ✔️lower than the typical whole life policy during the
first few years and then higher than typical for the remainder



A Modified Endowment Contract (MEC) is best described as ✔️A life insurance contract which
accumulated cash values higher than the IRS will allow



Which of the following policies does NOT build cash value? ✔️Term



A life insurance policy that has premiums fully paid up within a stated time period is called ✔️Limited
payment insurance



Joe has a life insurance policy that has a face amount of $300,000. After a number of years, the policy's
cash value accumulates to $50,000 and the face amount becomes $350,000. What kind of policy is this?
✔️Universal Life Policy



A life insurance policy which contains cash values that vary according to its investment performance of
stocks is called ✔️Variable Whole Life

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