Exam (elaborations)
XCEL Solutions 2024 Questions and Answers Scored A+
- Course
- Institution
Exam of 6 pages for the course Xcel solution at Xcel solution (XCEL Solutions 2024)
[Show more]
Content preview
XCEL Solutions 2024a nonparticipating company is sometimes called a - answer stock insurer
Fraternal Benefit Society has each other the following characteristics except - answer
exist for profit
The Fair Credit and Reporting Act's main purpose is to - answer protect consumers with
guidelines regarding credit reporting and distribution
A life insurance company has transferred some of its risk to another insurer. The insurer
assuming the risk is called the - answer reinsurer
What kind of life insurance policy issued by a mutual insurer provides a return of
divisible surplus? - answer participating life insurance policy
What is considered to be the primary reason for buying life insurance? - answer provide
death benefits
An insurer's ability to make unpredictable payouts to policyowners is called -
answerliquidity
The Do Not Call Registry offers exemptions for calls placed from all of the following
except - answerinsurance sales calls
Why are dividends from a mutual insurer not subject to taxation? - answerBecause
dividends are considered to be a return of premium
An insurer's claim settlement practices are regulated by the - answerState Insurance
Departments
All of the following are examples of pure risk EXCEPT - answerlosing money at a casino
Which of the following is considered to be an event or condition that increases the
probability of an insured's loss? - answerHazard
An individual who removes the risk of losing money in the stock market by never
purchasing stocks is said to be engaging in - answerRisk avoidance
The cause of a loss is referred to as - answerperil
Insurance represents the process of risk - answertransference
, What is known as the immediate specific event causing loss and giving rise to risk -
answerPeril
An example of risk sharing would be - answerDoctors pooling their money to cover
malpractice exposures
Insurance companies determine risk exposure by which of the following? - answerLaw
of large numbers and risk pooling
How do insurers predict the increase of individual risks? - answerlaw of large numbers
People with higher loss exposure have the tendency to purchase insurance more often
than those at average risk. This is called - answerAdverse selection
Who is responsible for assembling the policy forms for insureds? - answerInsurance
carriers
The authority granted to a licensed producer is provided via the - answerLaw of Agency
What makes an insurance policy a unilateral contract? - answerOnly the insurer is
legally bound
All of the following are elements of an insurance policy EXCEPT - answerclaim forms
Insurable interest does NOT occur in which of the following relationships? -
answerbusiness owner and business client
A professional liability for which producers can be sued for mistakes of putting a policy
into effect is called - answerErrors and omissions
According to the principle of Utmost Good Faith, the insured will answer questions on
the application to the best of their knowledge and pay the required premium, while the
insurer will deal fairly with the insured and its - answerPromises made
Which of the following is an example of the insured's consideration? - answerA paid
premium
Which of the following is present when an applicant stands to lose value if the insured
dies? - answerInsurable interest
In an insurance contract, the element that shows each party is giving something of
value is called - answerconsideration
when the principal gives the agent authority in writing, its referred to as - answerexpress
authority
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 Dreamer252. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
82215 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now