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XCEL Ohio Life and Health State Practice Exam Prep Questions And Answers ()
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XCEL South Carolina Life and Health Insurance EXAM QUESTIONS ExamPrep Questions And Answers (202472025)
An exclusive agency employs _____ agents who agree to market products of ____ insurer. -
✔✔independent; one
Premiums paid for insurance coverage that is not provided are referred to as ____ premiums. -
✔✔unearned
Insurance polices are contracts of ________. - ✔✔indemnity
"The greater the number of lives insured, the more predictable losses will be," is attributable to
what law? - ✔✔The law of large numbers
Describe the Needs Approach - ✔✔Determining the amount of life insurance a person needs by
using her specific financial goals and objectives
Give an example of moral hazard - ✔✔Filing a false insurance claim
Define insurance producer. - ✔✔An individual who sells insurance products to the public
Authorized insurers are known as _____ companies, while unauthorized insurers are known as
____ companies. - ✔✔admitted; nonadmitted
True or False: A foreign insurer is authorized in a state, but its principal office is authorized in
another country. - ✔✔False. A foreign insurer has its principal office in another state.
If a person needs to obtain coverage for a substandard or unusual risk, he would use a _______
broker. - ✔✔surplus lines broker
, Ture or False: The expense factor in the gross premium is based on what the insurer pays for
operating expenses. - ✔✔True
The insurer seeking reinsurance is the _____ insurer, while the insurer assuming the risk is the
_____. - ✔✔ceding insurer; reinsurer
Who issues participating life insurance policies? - ✔✔Mutual companies
Which valuation approach measures a person's potential future earnings to determine the amount
of life insurance needed? - ✔✔The human life value approach
Explain error and omission - ✔✔An unintentional error or honest mistake by a producer
What general name is used to describe agents, brokers, and consultants? - ✔✔Producer
What is the name of the price paid per unit of coverage? - ✔✔Rate
____ risk is the only type that may be insured. - ✔✔Pure risk
Where does a domestic insurer have its principal or home office? - ✔✔In the state where it is
headquartered
What are the two major approaches used to determine the amount of life insurance needed? -
✔✔Human life value and needs approach
True or False: Insurable interest must exist when a life insurance policy is issued. - ✔✔True.
What term describes a business that assumes the total risk of potential losses? - ✔✔Self-insured
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