Test 1

Question 1

When a policy pays dividends to its policyholders, it said to be

Answer 1

Participating

Question 2

What is the name of the law that requires insurance to disclose information gathering practices, and where the information was obtained?

Answer 2

Fair Credit reporting act

Question 3

The stated amount of percent of liquid assets that an insure must have on hand that will satisfy future obligations to its policyholders is called?

Answer 3

Reserves

Question 4

Which of these describes a participating insurance policy?

Answer 4

Policy owners are entitled to receive dividends

Question 5

A nonprofit incorporated society that does not have capital stock and operates for the sole purpose of benefit of its members is known as

Answer 5

A fraternal benefits society

Question 6

Who elects the governing body of mutual insurance company

Answer 6

Policyholders

Question 7

What type of reinsurance contract involves two companies automatically sharing their risk exposure?

Answer 7

Treaty

Question 8

Dividends payable to the policy owner
are

Answer 8

Declare by the insurance company

Question 9

What is the name of the law that requires insurance to disclose information gathering practices, and where the information was obtained?

Answer 9

Fair credit reporting act

Question 10

Which of the following requires insurance to disclose when an applicants customer or credit history is being investigated?

Answer 10

Fair credit reporting act

Question 11

A group-owned insurance company that is formed to assume and spread the liability risk of its members is known

Answer 11

Risk retention