Florida life Insurance Exam Set

Florida life Insurance Exam Set
1. Which of the following requires insurers to disclose when an applicants consumer or credit
history is being investigated
Answer: 1970 - Fair Credit ReportingAct
2. Who elects the governing body of a mutual insurance company
Answer: Policyholders
3. Which of these describe a participating insurance policy
Answer: Policyowners areentitled to receive dividends
4. The stated amount or percent of liquid assets that an insurer must have onhand that will
satisfy future obligations to its policyholders is called
Answer: reserves
5. An insurance applicant MUST be informed of an investigation regardinghis/her reputation
and character according to the
Answer: Fair Credit Reporting Act
6. Dividends payable to a policy owner are
Answer: Declared by the insurance company
7. A group-owned insurance company that is formed to assume and spreadthe liability risks of
its members is known as a
Answer: risk retention group
8. When a policy pays dividends to its policyholders, it is said to be
Answer: participating
9. At what point must a life insurance applicant be informed of their rightsthatfall under the
Fair Credit Reporting Act
Answer: Upon completion of the application
10. What type of reinsurance contract involves two companies automaticallysharing their risk
exposure?
Answer: Treaty reinsurance
11. What year was the McCarran-Ferguson Act enacted
Answer: 1945
12. What is the name of the law that requires insurers to disclose informationgathering
practices and where the information was obtained
Answer: Fair Credit Re- porting Act