Xcel Life and Health Insurance updated 2024 with verified answers
What is the primary purpose of a rating service company such as A.M Best? - Ans: Determine financial strength of an insurance company What is considered to be the primary reason for buying life insurance? - Ans: Provide death benefits Which of the following is NOT considered advertising? - Ans: A rating from a rating service company, such as A.M. Best A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called - Ans: A self-funded plan What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus? - Ans: Participating life insurance policy Why are dividends from a mutual insurer not subject to taxation? - Ans: Because dividends are considered to be a return of premium What is implied authority defined as? - Ans: Authority that is not specifically given to an agent in the agency contract, but that an agent can reasonably assume to carry out his/her duties In an insurance contract, the element that shows each party is giving something of value is called - Ans: Consideration In order for a contract to be valid, it must - Ans: Contain an offer and acceptance A professional liability for which producers can be sued for mistakes of putting a policy into effect is called - Ans: errors and omissions Insurable interest does NOT occur in which of the following relationships? - Ans: Business owner and business client The power given to an individual producer that is not specifically addressed in his/her contract is considered what type of authority? - Ans: Implied The deeds and actions of a producer indicate what kind of authority? - Ans: Apparent In an insurance contract, the insurer is the only party legally obligated to perform. Because of this, an insurance contract is considered - Ans: Unilateral Under a contract of adhesion, - Ans: the terms must be accepted or rejected in full Which of the following is an example of the insured's consideration? - Ans: A paid premium Who is responsible for assembling the policy forms for insureds? - Ans: Insurance carriers Julie has a $100,000 30-year mortgage on her new home. What type of life insurance could she purchase that is designed to pay off the loan balance if she dies within the 30-year period? - Ans: Decreasing term insurance How are survivorship life insurance policies helpful in estate planning? - Ans: Provide funds to help pay taxes Which of these would be the best example of a limited pay life insurance policy? - Ans: Whole life policy with premiums paid up after 20 years Under a Modified Endowment Contract, what are the likely tax consequences? - Ans: Pre-death distribution will become taxable
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xcel life and health insurance
