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SOS NERC Prep - RElIABILITY Exam Questions and answers EXAM, SOLUTIONS (MULTIPLE CH
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1
At what point must a life insurance applicant be informed of their rights that fall under the
Fair Credit Reporting Act?
TERM
Upon completion of the application
Image
DEFINITION
2
Who elects the governing body of a mutual insurance company?
TERM
policyholders
Image
DEFINITION
3
, An insurance applicant MUST be informed of an investigation regarding his/her reputation
and character according to the
TERM
Fair Credit Reporting Act
Image
DEFINITION
4
What type of reinsurance contract involves two companies automatically sharing their risk
exposure?
TERM
Treaty
Image
DEFINITION
5
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
TERM
reserves
Image
DEFINITION
6
Which of the following requires insurers to disclose when an applicant's consumer or credit
history is being investigated
TERM
1970 - Fair Credit Reporting Act
Image
DEFINITION
,7
What is the consideration given by an insurer in the Consideration clause of a life policy?
TERM
Promise to pay a death benefit
Image
DEFINITION
8
When third-party ownership is involved, applicants who also happen to be the stated
primary beneficiary are required to have
TERM
insurable interest in the proposed insured
Image
DEFINITION
9
Statements made on an insurance application that are believed to be true to the best of the
applicant's knowledge are called
TERM
representations
Image
DEFINITION
10
The part of a life insurance policy guaranteed to be true is called a(n)
TERM
, warranty
Image
DEFINITION
11
Which of these is NOT a type of agent authority?
Express
Implied
Principal
Apparent
TERM
Principal
Image
DEFINITION
12
The Consideration clause of an insurance contract includes
TERM
the schedule and amount of premium payments
Image
DEFINITION
13
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?
TERM
Saved just now
Title
SOS NERC Prep - RElIABILITY Exam Questions and answers EXAM, SOLUTIONS (MULTIPLE CH
Add a description...
Import Add diagram Create from notes
Suggestions
1
At what point must a life insurance applicant be informed of their rights that fall under the
Fair Credit Reporting Act?
TERM
Upon completion of the application
Image
DEFINITION
2
Who elects the governing body of a mutual insurance company?
TERM
policyholders
Image
DEFINITION
3
, An insurance applicant MUST be informed of an investigation regarding his/her reputation
and character according to the
TERM
Fair Credit Reporting Act
Image
DEFINITION
4
What type of reinsurance contract involves two companies automatically sharing their risk
exposure?
TERM
Treaty
Image
DEFINITION
5
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
TERM
reserves
Image
DEFINITION
6
Which of the following requires insurers to disclose when an applicant's consumer or credit
history is being investigated
TERM
1970 - Fair Credit Reporting Act
Image
DEFINITION
,7
What is the consideration given by an insurer in the Consideration clause of a life policy?
TERM
Promise to pay a death benefit
Image
DEFINITION
8
When third-party ownership is involved, applicants who also happen to be the stated
primary beneficiary are required to have
TERM
insurable interest in the proposed insured
Image
DEFINITION
9
Statements made on an insurance application that are believed to be true to the best of the
applicant's knowledge are called
TERM
representations
Image
DEFINITION
10
The part of a life insurance policy guaranteed to be true is called a(n)
TERM
, warranty
Image
DEFINITION
11
Which of these is NOT a type of agent authority?
Express
Implied
Principal
Apparent
TERM
Principal
Image
DEFINITION
12
The Consideration clause of an insurance contract includes
TERM
the schedule and amount of premium payments
Image
DEFINITION
13
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?
TERM
