NJ HEALTH INSURANCE EXAM (XCEL S
g g g g g
OLUTIONS) | QUESTIONS &ANSWERS ( g g g g g
VERIFIED) | LATEST UPDATE | GRADED A
g g g g g g
+
Whygaregdividendsgfromgagmutualginsurergnotgsubjectgtogtaxation?
CorrectgAnswer: becausegdividendsgaregconsideredgtogbegagreturngofgpremium
ABCginsurancegcompanygtransfersgpartgofgtheirgriskgtogXYZginsurancegcompany.gThisgsituati
ongisgcalled
CorrectgAnswer: reinsurance
Agnonparticipatinggcompanygisgsometimesgcalledga(n)
CorrectgAnswer: stockginsurer
Whatgisgconsideredgtogbegthegprimarygreasongforgbuyingglifeginsurance?
CorrectgAnswer: providegdeathgbenefits
A(n)g companygisgownedgbygitsgshareholders
1
,CorrectgAnswer: stock
Agplangingwhichgangemployergpaysginsurancegbenefitsgfromgagfundgderivedgfromgthegemploy
er'sgcurrentgrevenuesgisgcalled
CorrectgAnswer: agself-fundedgplan
WhatgisgthegprimarygpurposegofgagratinggservicegcompanygsuchgasgA.M.gBest?
CorrectgAnswer: determinegfinancialgstrengthgofganginsurancegcompany
Karengisgagproducergwhoghasgobtainedgpersonalginformationgaboutgagclientgwithoutghavi
nggaglegitimategreasongtogdogso.gUndergthegMcCarran-
FergusongAct,gwhatgisgthegminimumgpenaltygforgthis?
CorrectgAnswer: $10,000
Agnonparticipatinggpolicygwill
CorrectgAnswer: notgpaygdividends
Aglifeginsurancegcompanyghasgtransferredgsomegofgitsgriskgtoganotherginsurer.gTheginsurerga
ssuminggthegriskgisgcalledgthe
CorrectgAnswer: reinsurer
KengisgagproducergwhoghasgobtainedgConsumergInformationgReportsgundergfalsegprete
nses.gUndergthegFairgCreditgReportinggAct,gwhatgisgthegmaximumgpenaltygthatgmaygbegi
mposedgongKen?
2
,CorrectgAnswer: $5,000
Agtypegofginsurergthatgisgownedgbygitsgpolicyownersgisgcalled
CorrectgAnswer: mutual
FraternalgBenefitgSocietyghasgeachgofgthegfollowinggcharacteristicsgEXCEPTgincorporat
ed
withoutgcapitalgstockg
existsgforgprofit
existsgforgthegbenefitgofgitsgmembers
CorrectgAnswer: existsgforgprofit
ThegDogNotgCallgRegistrygoffersgexemptionsgforgcallsgplacedgfromgallgofgthegfollowinggE
XCEPT
charities
politicalgorganizations
insurancegsalesgcall
g
sgsurveys
CorrectgAnswer: insurancegsalesgcalls
Whatgkindgofglifeginsurancegpolicygissuesgbygagmutualginsurergprovidesgagreturngofgdivis
iblegsurplus?
CorrectgAnswer: participatingglifeginsurancegpolicy
3
, Anginsurer'sgabilitygtogmakegunpredictablegpayoutsgtogpolicyownersgisgcalled
CorrectgAnswer: liquidity
Anginsurer'sgclaimgsettlementgpracticesgaregregulatedgbygthe
CorrectgAnswer: stateginsurancegdepartments
WhichgofgthegfollowinggisgNOTgconsideredgadvertising?
agratinggfromgagratinggservicegcompany,gsuchgasgA.M.gBestg
angillustration
agsalesgpresentation
directgmailinggfromgangagency
CorrectgAnswer: agratinggfromgagratinggservicegcompany,gsuchgasgA.M.gBest
ThegFairgCreditgandgReportinggAct'sgmaingpurposegisgto
CorrectgAnswer:
protectgconsumersgwithgguidelinesgregardinggcreditgreportinggan
dgdistribution
Whengthegprincipleggivesgthegagentgauthoritygingwriting,git'sgreferredgtogas
CorrectgAnswer: expressgauthority
Whatgaregangapplicant'sgstatementsgconcerninggoccupation,ghobbies,gandgpersonalghe
althghistorygregardedgas?
g g g g g
OLUTIONS) | QUESTIONS &ANSWERS ( g g g g g
VERIFIED) | LATEST UPDATE | GRADED A
g g g g g g
+
Whygaregdividendsgfromgagmutualginsurergnotgsubjectgtogtaxation?
CorrectgAnswer: becausegdividendsgaregconsideredgtogbegagreturngofgpremium
ABCginsurancegcompanygtransfersgpartgofgtheirgriskgtogXYZginsurancegcompany.gThisgsituati
ongisgcalled
CorrectgAnswer: reinsurance
Agnonparticipatinggcompanygisgsometimesgcalledga(n)
CorrectgAnswer: stockginsurer
Whatgisgconsideredgtogbegthegprimarygreasongforgbuyingglifeginsurance?
CorrectgAnswer: providegdeathgbenefits
A(n)g companygisgownedgbygitsgshareholders
1
,CorrectgAnswer: stock
Agplangingwhichgangemployergpaysginsurancegbenefitsgfromgagfundgderivedgfromgthegemploy
er'sgcurrentgrevenuesgisgcalled
CorrectgAnswer: agself-fundedgplan
WhatgisgthegprimarygpurposegofgagratinggservicegcompanygsuchgasgA.M.gBest?
CorrectgAnswer: determinegfinancialgstrengthgofganginsurancegcompany
Karengisgagproducergwhoghasgobtainedgpersonalginformationgaboutgagclientgwithoutghavi
nggaglegitimategreasongtogdogso.gUndergthegMcCarran-
FergusongAct,gwhatgisgthegminimumgpenaltygforgthis?
CorrectgAnswer: $10,000
Agnonparticipatinggpolicygwill
CorrectgAnswer: notgpaygdividends
Aglifeginsurancegcompanyghasgtransferredgsomegofgitsgriskgtoganotherginsurer.gTheginsurerga
ssuminggthegriskgisgcalledgthe
CorrectgAnswer: reinsurer
KengisgagproducergwhoghasgobtainedgConsumergInformationgReportsgundergfalsegprete
nses.gUndergthegFairgCreditgReportinggAct,gwhatgisgthegmaximumgpenaltygthatgmaygbegi
mposedgongKen?
2
,CorrectgAnswer: $5,000
Agtypegofginsurergthatgisgownedgbygitsgpolicyownersgisgcalled
CorrectgAnswer: mutual
FraternalgBenefitgSocietyghasgeachgofgthegfollowinggcharacteristicsgEXCEPTgincorporat
ed
withoutgcapitalgstockg
existsgforgprofit
existsgforgthegbenefitgofgitsgmembers
CorrectgAnswer: existsgforgprofit
ThegDogNotgCallgRegistrygoffersgexemptionsgforgcallsgplacedgfromgallgofgthegfollowinggE
XCEPT
charities
politicalgorganizations
insurancegsalesgcall
g
sgsurveys
CorrectgAnswer: insurancegsalesgcalls
Whatgkindgofglifeginsurancegpolicygissuesgbygagmutualginsurergprovidesgagreturngofgdivis
iblegsurplus?
CorrectgAnswer: participatingglifeginsurancegpolicy
3
, Anginsurer'sgabilitygtogmakegunpredictablegpayoutsgtogpolicyownersgisgcalled
CorrectgAnswer: liquidity
Anginsurer'sgclaimgsettlementgpracticesgaregregulatedgbygthe
CorrectgAnswer: stateginsurancegdepartments
WhichgofgthegfollowinggisgNOTgconsideredgadvertising?
agratinggfromgagratinggservicegcompany,gsuchgasgA.M.gBestg
angillustration
agsalesgpresentation
directgmailinggfromgangagency
CorrectgAnswer: agratinggfromgagratinggservicegcompany,gsuchgasgA.M.gBest
ThegFairgCreditgandgReportinggAct'sgmaingpurposegisgto
CorrectgAnswer:
protectgconsumersgwithgguidelinesgregardinggcreditgreportinggan
dgdistribution
Whengthegprincipleggivesgthegagentgauthoritygingwriting,git'sgreferredgtogas
CorrectgAnswer: expressgauthority
Whatgaregangapplicant'sgstatementsgconcerninggoccupation,ghobbies,gandgpersonalghe
althghistorygregardedgas?
