Podcast
Questions and Answers
An insurance applicant must be informed of an investigation regarding his/her reputation and character according to the?
An insurance applicant must be informed of an investigation regarding his/her reputation and character according to the?
Fair Credit Reporting Act
A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of its members is known as?
A nonprofit incorporated society that does not have capital stock and operates for the sole benefit of its members is known as?
A fraternal benefit society
At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act?
At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act?
Upon completion of the application
Which of these describe a participating life insurance policy?
Which of these describe a participating life insurance policy?
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A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a?
A group-owned insurance company that is formed to assume and spread the liability risks of its members is known as a?
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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?
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?
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Which of the following requires insurers to disclose when an applicant's consumer or credit history is being investigated?
Which of the following requires insurers to disclose when an applicant's consumer or credit history is being investigated?
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What type of reinsurance contract involves two companies automatically sharing their risk exposure?
What type of reinsurance contract involves two companies automatically sharing their risk exposure?
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What is the name of the law that requires insurers to disclose information gathering practices and where the information was obtained?
What is the name of the law that requires insurers to disclose information gathering practices and where the information was obtained?
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Who elects the governing body of a mutual insurance company?
Who elects the governing body of a mutual insurance company?
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What year was the McCarran-Ferguson Act enacted?
What year was the McCarran-Ferguson Act enacted?
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Study Notes
Insurance Legislation and Regulations
- The Fair Credit Reporting Act mandates that insurance applicants must be informed of any investigations into their reputation and character.
- Applicants must be informed of their rights under the Fair Credit Reporting Act upon completing their application.
- The Fair Credit Reporting Act, enacted in 1970, requires insurers to disclose when an applicant's consumer or credit history is being investigated and their information-gathering practices.
Types of Insurance Societies and Policies
- A fraternal benefit society is a nonprofit organization that operates solely for the benefit of its members and does not have capital stock.
- Participating life insurance policies allow policyholders to receive dividends, sharing in the profits of the insurance company.
- A risk retention group is a group-owned insurance company formed to spread liability risks among its members.
Insurance Financial Terminology
- Reserves refer to the required amount of liquid assets that an insurer must maintain to meet future obligations to policyholders.
- Reinsurance contracts can be categorized as treaty contracts, which involve automatic sharing of risk exposure between two companies.
Governance and Historical Legislation
- Policyholders are responsible for electing the governing body of a mutual insurance company.
- The McCarran-Ferguson Act was enacted in 1945, impacting the regulation of insurance companies and states' rights.
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Description
Test your knowledge on fundamental insurance principles with these flashcards. Questions cover important acts and types of insurance societies, essential for aspiring professionals in the field.
