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XCEL LIFE AND HEALTH INSURANCE FINAL
EXAM NEWEST 2025 ACTUAL EXAM
COMPLETE 150 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
Question: What is the stated amount or percent of liquid assets
that an insurer must have on hand that will satisfy future obligations to its policyholders called?
ANSWER: Reserves
Question: Who elects the governing body of a mutual insurance
company?
ANSWER: policyholders
Question: What describes a participating insurance policy where
policyowners are entitled to receive dividends?
ANSWER: Policyowners are entitled to receive dividends
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Question: What is a nonprofit incorporated society that does not
have capital stock and operates for the sole benefit of its members known as?
ANSWER: Fraternal Benefit Society
Question: 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
Question: What year was the McCarran-Ferguson Act enacted?
ANSWER: 1945
Question: What type of reinsurance contract involves two
companies automatically sharing their risk exposure?
ANSWER: treaty
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Question: What is the name of the law that requires insurers to
disclose information gathering practices and where the information was obtained?
ANSWER: fair credit reporting act
Question: What is taking receipt of premiums and holding them
for the insurance company an example of?
ANSWER: Fiduciary Responsibility
Question: What arrangement allows one to bypass insurable
interest laws?
ANSWER: Investor Originated Life Insurance (IOLI)
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Question: What are the three elements of a contract?
ANSWER: offer, acceptance, and consideration
Question: What is a contract where one party either accepts or
rejects the terms of a contract written by another party called?
ANSWER: adhesion
Question: What must a life insurance policy have to not be
considered a wagering contract?
ANSWER: insurable interest
Question: What is considered a statement that is assured to be
very true in every respect?