Life & Health Insurance Exam - Chapter 1 (Basic Principles)

Front 1

Karen is a producer who has obtained personal information about a client without having a legitimate to do so. Under the Mccarran - Ferguson Act, what is the minimum penalty for this?

Back 1

$10,000.00

Front 2

An insurer's claim settlement practices are regulated by the

Back 2

State insurance departments.

Front 3

A nonpaticipating company is sometimes called a (n)

Back 3

Stock insurer.

Front 4

The Fair Credit and Reporting Act's main purpose is to

Back 4

Protect consumers with guidelines regarding credit reporting and distribution

Front 5

What kind of Life insurance policy issued by a mutual insurer provides a return of divisible surplus?

Back 5

Participating life insurance policy

Front 6

A life company has transferred some of its risk to another insurer. The insurer assuming the risk is called the

Back 6

Reinsurer

Front 7

Why are dividends from a mutual insurer not subject to taxation?

Back 7

Because dividends are considered to be a return of premium.

Front 8

Ken is producer who has obtained Consumer information Reports under false pretenses. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken?

Back 8

$5,000.00

Front 9

Which of the following is NOT considered advertising?

Back 9

A rating from a rating service company, such as A.M. best.

Front 10

Fraternal Benefit Society has each of the following characteristics EXCEPT

Back 10

Exist for profit.

Front 11

The do not call registry offers exemptions for calls placed from all of the following EXCEPT

Back 11

Insurance sales calls

Front 12

What is the primary of a rating service company such a A.M. best?

Back 12

Determine financial strength of an insurance company.

Front 13

A nonpaticipating policy will

Back 13

Not pay dividends