The Do Not Call Registry offers exemptions for calls placed from all of the following EXCEPT
charities
political organizations
insurance sales calls
surveys
insurance sales calls
Karen is a producer who has obtained personal information about a client without having a legitimate reason to do so. Under the McCarran-Ferguson Act, what is the minimum penalty for this?
$0
$5,000
$10,000
$15,000
$10,000
A plan in which an employer pays insurance benefits from a fund derived from the employer's current revenues is called
A self-derived plan
A multiple-employer plan
A blanket plan
A self-funded plan
A self-funded plan
A nonparticipating policy will
provide a return of premium
provide tax advantages
not pay dividends
give policyowners special privileges
not pay dividends
Fraternal Benefit Society has each of the following characteristics EXCEPT
Incorporated
Without capital stock
Exist For profit
Exist for the benefit of its members
Exist For profit
A life insurance company has transferred some of its risk to another insurer. The insurer assuming the risk is called the
mutual insurer
reinsurer
reciprocal insurer
participating insurer
reinsurer
An insurer's claim settlement practices are regulated by the
Securities and Exchange Commission (SEC)
National Association of Claims Adjusters (NACA)
National Association of Insurance Commissioners (NAIC)
State insurance departments
State insurance departments
What is the primary purpose of a rating service company such as A.M Best?
Determine which insurer offers the best rates
Determine which insurer offers the best policies
Determine financial strength of an insurance company
Determine which agent to use loca
Determine financial strength of an insurance company
Ken is a producer who has obtained Consumer Information Reports under false pretenses. Under the Fair Credit Reporting Act, what is the maximum penalty that may be imposed on Ken?
$1,000
$3,000
$5,000
$7,000
$5,000
A nonparticipating company is sometimes called a(n)
alien insurer
mutual insurer
reinsurer
stock insurer
stock insurer
What is considered to be the primary reason for buying life insurance?
Provide death benefits
Provide money for retirement
Provide living benefits
Provide money for colleg
Provide death benefits
An insurer's ability to make unpredictable payouts to policyowners is called
investment values
liquidity
assets
capital
liquidity
What kind of life insurance policy issued by a mutual insurer provides a return of divisible surplus?
nonparticipating life insurance policy
participating life insurance policy
divisible surplus life insurance policy
straight life insurance policy
participating life insurance policy
The Fair Credit and Reporting Act's main purpose is to
1) assist in the underwriting of insurance policies
2) protect insurers from an applicant's misrepresentation
3) protect consumers with guidelines regarding credit reporting and distribution
4) assist
protect consumers with guidelines regarding credit reporting and distribution
Why are dividends from a mutual insurer not subject to taxation?
Because insurance premiums are tax-deductible
Because dividends are already subject to capital gains
Because dividends are payable directly to the policyholder
Because dividends are consider
Because dividends are considered to be a return of premium
Which of the following is NOT considered advertising?
A rating from a rating service company, such as A.M. Best
An illustration
A sales presentation
Direct mailing from an agency
A rating from a rating service company, such as A.M. Best