XCEL LIFE INSURANCE FINAL PAPER 2026
COMPLETE QUESTIONS AND VERIFIED
ANSWERS GRADED A+
⩥ Which of these describe a participating insurance policy.
Answer: Policy owners are entitled to receive dividends
⩥ Who elects the governing body of a mutual insurance company.
Answer: Policyholders
⩥ Which of the following requires insurer to disclose when an
applicant's consumer credit history is being investigated.
Answer: Fair Credit Reporting Act
⩥ A group owned insurance company that is formed to assume and
spread the liability risk of it's members is know as a.
Answer: risk retention group
⩥ Which of the following requires insurers to disclose when an applicant
consumer or Credit history is being investigated?.
Answer: 1970 Fair Credit Reporting Act
,⩥ When a policy pays dividends to it policyholders, it is said to be.
Answer: participating
⩥ An Insurance applicant MUST be informed of an investigation
regarding his/her reputation and character according to the:.
Answer: Fair Credit Reporting Act
⩥ What type of risk is the only insurable risk.
Answer: Pure Risk
⩥ Prue Risk.
Answer: Is a situation that can only result in a loss, there is no
opportunity for financial gain
⩥ What year was the McCarran-Ferguson Act enacted.
Answer: 1945
The McCarran-Ferguson Act was enacted in 1945 and made it clear that
continued regulation of insurance by the states was in the public's best
interest
⩥ What type of reinsurance contract involves two companies
automatically sharing their risk exposure?.
,Answer: Treaty
⩥ A nonprofit incorporated society that does not have capital stock and
operates for the sole benefits of its members is known as.
Answer: A fraternal benefit society
⩥ 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 contract where one party either accepts or rejects the terms of a
contract written by another is called a contract of.
Answer: adhesion
⩥ insurance policies are offered on a "take it or leave it" basis, which
make them.
Answer: Contracts of adhesion
⩥ If a contract of adhesion contains complicated language, to whom
would the interpretation be in favor of.
Answer: Insured
⩥ A policy of adhesion can only be modified by whom.
, Answer: The insurance company.
(A policy of adhesion is best described as a policy which only the
insurance company can modify.)
⩥ At what point does an informal agreement become a binding contract.
Answer: When consideration is provided by one of the parties of the
contract.
⩥ A life insurance policy would be considered a wagering contract
WITHOUT.
Answer: Insurable interest
⩥ Statements made on an insurance application that are believed to be
true to the best of the applicant's knowledge are called:.
Answer: Representations
⩥ in an insurance contract, the insurer is the only party who makes a
legally enforceable promise. What kind of contract is this?.
Answer: Unilateral
⩥ taking receipt of premiums and holding them for the insurance
company is an example of:.
Answer: Fiduciary responsibility
COMPLETE QUESTIONS AND VERIFIED
ANSWERS GRADED A+
⩥ Which of these describe a participating insurance policy.
Answer: Policy owners are entitled to receive dividends
⩥ Who elects the governing body of a mutual insurance company.
Answer: Policyholders
⩥ Which of the following requires insurer to disclose when an
applicant's consumer credit history is being investigated.
Answer: Fair Credit Reporting Act
⩥ A group owned insurance company that is formed to assume and
spread the liability risk of it's members is know as a.
Answer: risk retention group
⩥ Which of the following requires insurers to disclose when an applicant
consumer or Credit history is being investigated?.
Answer: 1970 Fair Credit Reporting Act
,⩥ When a policy pays dividends to it policyholders, it is said to be.
Answer: participating
⩥ An Insurance applicant MUST be informed of an investigation
regarding his/her reputation and character according to the:.
Answer: Fair Credit Reporting Act
⩥ What type of risk is the only insurable risk.
Answer: Pure Risk
⩥ Prue Risk.
Answer: Is a situation that can only result in a loss, there is no
opportunity for financial gain
⩥ What year was the McCarran-Ferguson Act enacted.
Answer: 1945
The McCarran-Ferguson Act was enacted in 1945 and made it clear that
continued regulation of insurance by the states was in the public's best
interest
⩥ What type of reinsurance contract involves two companies
automatically sharing their risk exposure?.
,Answer: Treaty
⩥ A nonprofit incorporated society that does not have capital stock and
operates for the sole benefits of its members is known as.
Answer: A fraternal benefit society
⩥ 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 contract where one party either accepts or rejects the terms of a
contract written by another is called a contract of.
Answer: adhesion
⩥ insurance policies are offered on a "take it or leave it" basis, which
make them.
Answer: Contracts of adhesion
⩥ If a contract of adhesion contains complicated language, to whom
would the interpretation be in favor of.
Answer: Insured
⩥ A policy of adhesion can only be modified by whom.
, Answer: The insurance company.
(A policy of adhesion is best described as a policy which only the
insurance company can modify.)
⩥ At what point does an informal agreement become a binding contract.
Answer: When consideration is provided by one of the parties of the
contract.
⩥ A life insurance policy would be considered a wagering contract
WITHOUT.
Answer: Insurable interest
⩥ Statements made on an insurance application that are believed to be
true to the best of the applicant's knowledge are called:.
Answer: Representations
⩥ in an insurance contract, the insurer is the only party who makes a
legally enforceable promise. What kind of contract is this?.
Answer: Unilateral
⩥ taking receipt of premiums and holding them for the insurance
company is an example of:.
Answer: Fiduciary responsibility
