XCEL LIFE INSURANCE COURSE
ASSESSMENT 2026 ACTUAL QUESTIONS
WITH SOLUTIONS GRADED A+
⩥ What type of reinsurance contract involves two companies
automatically sharing their risk exposure?
Answer: Treaty
⩥ What is the name of the law that requires insurers to disclose
information gathering practices and where the information was
obtained?
Answer: Fair Credit Reporting Act
⩥ Who elects the governing body of a mutual insurance company?
Answer: policyholders
⩥ The stated amount or percent of liquid assets that an insurer must have
on hand that will satisfy future obligations to its policyholders is called:
Answer: reserves
⩥ A group-owned insurance company that is formed to assume and
spread the liability risks of its members is known as a:
Answer: risk retention group
,⩥ What year was the McCarran-Ferguson Act enacted?
Answer: 1945
⩥ Which of these describe a participating life insurance policy?
Answer: Policyowners are entitled to receive dividends
⩥ At what point must a life insurance applicant be informed of their
rights that fall under the Fair Credit Reporting Act?
Answer: Upon completion of the application
⩥ A nonprofit incorporated society that does not have capital stock and
operates for the sole benefit of its members is known as:
Answer: a fraternal benefit society
⩥ An insurance applicant MUST be informed of an investigation
regarding his/her reputation and character according to the:
Answer: Fair Credit Reporting Act
⩥ Which of the following consists of an offer, acceptance, and
consideration?
Answer: Contract
, ⩥ Which of these is NOT a type of agent authority?
Answer: Principal
⩥ E and F are business partners. Each takes out a $500,000 life
insurance policy on the other, naming himself as primary beneficiary. E
and F eventually terminate their business, and four months later E dies.
Although E was married with three children at the time of death, the
primary beneficiary is still F. However, an insurable interest no longer
exists. Where will the proceeds from E's life insurance policy be directed
to?
Answer: F
⩥ All of the following are considered to be typical characteristics
describing the nature of an insurance contract, EXCEPT:
Answer: Bilateral
⩥ The part of a life insurance policy guaranteed to be true is called a(n):
Answer: warranty
⩥ A life insurance arrangement which circumvents insurable interest
statutes is called:
Answer: Investor-Originated Life Insurance
ASSESSMENT 2026 ACTUAL QUESTIONS
WITH SOLUTIONS GRADED A+
⩥ What type of reinsurance contract involves two companies
automatically sharing their risk exposure?
Answer: Treaty
⩥ What is the name of the law that requires insurers to disclose
information gathering practices and where the information was
obtained?
Answer: Fair Credit Reporting Act
⩥ Who elects the governing body of a mutual insurance company?
Answer: policyholders
⩥ The stated amount or percent of liquid assets that an insurer must have
on hand that will satisfy future obligations to its policyholders is called:
Answer: reserves
⩥ A group-owned insurance company that is formed to assume and
spread the liability risks of its members is known as a:
Answer: risk retention group
,⩥ What year was the McCarran-Ferguson Act enacted?
Answer: 1945
⩥ Which of these describe a participating life insurance policy?
Answer: Policyowners are entitled to receive dividends
⩥ At what point must a life insurance applicant be informed of their
rights that fall under the Fair Credit Reporting Act?
Answer: Upon completion of the application
⩥ A nonprofit incorporated society that does not have capital stock and
operates for the sole benefit of its members is known as:
Answer: a fraternal benefit society
⩥ An insurance applicant MUST be informed of an investigation
regarding his/her reputation and character according to the:
Answer: Fair Credit Reporting Act
⩥ Which of the following consists of an offer, acceptance, and
consideration?
Answer: Contract
, ⩥ Which of these is NOT a type of agent authority?
Answer: Principal
⩥ E and F are business partners. Each takes out a $500,000 life
insurance policy on the other, naming himself as primary beneficiary. E
and F eventually terminate their business, and four months later E dies.
Although E was married with three children at the time of death, the
primary beneficiary is still F. However, an insurable interest no longer
exists. Where will the proceeds from E's life insurance policy be directed
to?
Answer: F
⩥ All of the following are considered to be typical characteristics
describing the nature of an insurance contract, EXCEPT:
Answer: Bilateral
⩥ The part of a life insurance policy guaranteed to be true is called a(n):
Answer: warranty
⩥ A life insurance arrangement which circumvents insurable interest
statutes is called:
Answer: Investor-Originated Life Insurance
