EXAM FX LIFE INSURANCE TEST 2026-2027
LATEST UPDATE EXPERT VERIFIED
QUESTIONS AND ANSWERS
Ray has an individual major medical policy that requires a coinsurance payment. Ray rarely visits his p
hysician and would prefer to pay the lowest premium possible. Which coinsurance arranngement would
be best for Ray? - correct answer-50/50
Which two terms are associated directly with the way an annuity is funded? - correct answer-
Single payment or periodic payments
All of the following are examples of thirs party ownership of life insurance - correct answer-
An insured borrows money from the bank and makes a collateal assignment of a part of the death benef
it to secure the loan
An insured pays $1,200 annually for her life insurance premium. The insured applies this year's $300 w
orth of accumulated dividends to the next year's premiums, thus reducing it to $900. What option does t
his describe? - correct answer-Reduction of premium
A small company offers group insurance to its employees, but recently has decided to terminate the heal
th insurance contract, leaving the workers without insurance. What can the employees do regarding thei
r insurance? - correct answer-Convert to an individual policy
What phase begins after a new policy is delivered? - correct answer-Free-Look period
An insured want to name her husband as the beneficiary of her health policy. She also wishes to retain a
ll of the rights of ownership. The insured should have herhusband named as what type of beneficiary? -
correct answer-Revocable
In order for a debtor group to qualify for group life insurance, what should be the minimum number of
participants joining the plan every year - correct answer-100
Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the fu
nds to purchase new insurance? - correct answer-Replacement rule
, Which term secribes the benefits of a life insurance policy that the policyowner does not automatically r
elinquish even if the policy lapses? - correct answer-Nonforfeiture values
Agents who persaude insureds to cancel a policy in favor of another one when it might not be in the ins
ured's best interest are guilty of - correct answer-Twisting
If an employee is accepted into a group insurance plan, which status will the employee have? -
correct answer-Certificate holder
Which document helps ensure that full and fair disclosure is provided to the recipient of a policy? -
correct answer-Outline of Coverage
A licensed agent must complete how many hours of continuing education specific to ethics and regulato
ry updates? - correct answer-5
An individual purchased a Medicare supplement policy in March and decied to replace it 2 months later
. His history of coronary artery disease is considered a pre-
existing condition. Which of the following is true? - correct answer-The pre-
existing condition waiting period fulfilled in the old policy will be transferred to the ne wpolicy, the ne
w one picking up where the oldRon left off
Which of the following may NOT be included in an insurance company's advertisement? -
correct answer-That its policies are covered by a state Guaranty Association
Who does the secondary addressee provision protect? - correct answer-The insured over the age of 64
Which of the following is an agreement between an insured and an insurer, where the insurer agrees to i
ndemnify the insured for specific losses in exchange for a premium? - correct answer-
The insurance contract
In a group policy, who is issued a certificate of insurance? - correct answer-The individual insured
Can a group that is formed for the sole purpose of obtaining group insurance qualify for group coverage
? - correct answer-No, the group must be formed for a purpose other than obtaining group insurance
LATEST UPDATE EXPERT VERIFIED
QUESTIONS AND ANSWERS
Ray has an individual major medical policy that requires a coinsurance payment. Ray rarely visits his p
hysician and would prefer to pay the lowest premium possible. Which coinsurance arranngement would
be best for Ray? - correct answer-50/50
Which two terms are associated directly with the way an annuity is funded? - correct answer-
Single payment or periodic payments
All of the following are examples of thirs party ownership of life insurance - correct answer-
An insured borrows money from the bank and makes a collateal assignment of a part of the death benef
it to secure the loan
An insured pays $1,200 annually for her life insurance premium. The insured applies this year's $300 w
orth of accumulated dividends to the next year's premiums, thus reducing it to $900. What option does t
his describe? - correct answer-Reduction of premium
A small company offers group insurance to its employees, but recently has decided to terminate the heal
th insurance contract, leaving the workers without insurance. What can the employees do regarding thei
r insurance? - correct answer-Convert to an individual policy
What phase begins after a new policy is delivered? - correct answer-Free-Look period
An insured want to name her husband as the beneficiary of her health policy. She also wishes to retain a
ll of the rights of ownership. The insured should have herhusband named as what type of beneficiary? -
correct answer-Revocable
In order for a debtor group to qualify for group life insurance, what should be the minimum number of
participants joining the plan every year - correct answer-100
Which rule would apply if an agent knows an applicant is going to cash in an old policy and use the fu
nds to purchase new insurance? - correct answer-Replacement rule
, Which term secribes the benefits of a life insurance policy that the policyowner does not automatically r
elinquish even if the policy lapses? - correct answer-Nonforfeiture values
Agents who persaude insureds to cancel a policy in favor of another one when it might not be in the ins
ured's best interest are guilty of - correct answer-Twisting
If an employee is accepted into a group insurance plan, which status will the employee have? -
correct answer-Certificate holder
Which document helps ensure that full and fair disclosure is provided to the recipient of a policy? -
correct answer-Outline of Coverage
A licensed agent must complete how many hours of continuing education specific to ethics and regulato
ry updates? - correct answer-5
An individual purchased a Medicare supplement policy in March and decied to replace it 2 months later
. His history of coronary artery disease is considered a pre-
existing condition. Which of the following is true? - correct answer-The pre-
existing condition waiting period fulfilled in the old policy will be transferred to the ne wpolicy, the ne
w one picking up where the oldRon left off
Which of the following may NOT be included in an insurance company's advertisement? -
correct answer-That its policies are covered by a state Guaranty Association
Who does the secondary addressee provision protect? - correct answer-The insured over the age of 64
Which of the following is an agreement between an insured and an insurer, where the insurer agrees to i
ndemnify the insured for specific losses in exchange for a premium? - correct answer-
The insurance contract
In a group policy, who is issued a certificate of insurance? - correct answer-The individual insured
Can a group that is formed for the sole purpose of obtaining group insurance qualify for group coverage
? - correct answer-No, the group must be formed for a purpose other than obtaining group insurance
