XCEL Solutions Already Graded A+
1. A nonparticipating company is sometimes called a: - A) ️ Stock insurer - B) Mutual insurer - C) Fraternal insurer - D) Reinsurer
2. Fraternal Benefit Society has each of the following characteristics except: - A) Nonprofit status - B) Membersh...
1. A nonparticipating company is sometimes called a:
- A) ✔️ Stock insurer
- B) Mutual insurer
- C) Fraternal insurer
- D) Reinsurer
2. Fraternal Benefit Society has each of the following characteristics except:
- A) Nonprofit status
- B) Membership based on a common bond
- C) Provides benefits to members
- D) ✔️ Exist for profit
3. The Fair Credit and Reporting Act's main purpose is to:
- A) Regulate credit card companies
- B) ✔️ Protect consumers with guidelines regarding credit reporting and distribution
- C) Increase competition among lenders
- D) Provide insurance coverage for credit risks
4. A life insurance company has transferred some of its risk to another insurer. The insurer assuming the
risk is called the:
- A) ✔️ Reinsurer
- B) Primary insurer
- C) Sibling insurer
- D) Participating insurer
5. What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus?
, - A) Nonparticipating life insurance policy
- B) ✔️ Participating life insurance policy
- C) Fixed life insurance policy
- D) Whole life insurance policy
6. What is considered to be the primary reason for buying life insurance?
- A) Accumulate cash value
- B) ✔️ Provide death benefits
- C) Save for retirement
- D) Tax benefits
7. An insurer's ability to make unpredictable payouts to policyowners is called:
- A) Capital
- B) Profitability
- C) ✔️ Liquidity
- D) Solvency
8. The Do Not Call Registry offers exemptions for calls placed from all of the following except:
- A) Political organizations
- B) Charitable organizations
- C) ✔️ Insurance sales calls
- D) Survey organizations
9. Why are dividends from a mutual insurer not subject to taxation?
- A) Because they are treated as income
- B) ✔️ Because dividends are considered to be a return of premium
- C) Because they do not exceed certain thresholds
- D) Because they are earned through investments
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller CertifiedGrades. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.29. You're not tied to anything after your purchase.
