FX COMPLETE EXAM REVIEW WITH FULL
SOLUTIONS
●● Accident
Answer: An unplanned, unforeseen event which occurs suddenly and at
an unspecified place.
●● Accident Insurance
Answer: A type of insurance that protects the insured against loss due to
accidental bodily injury. Accidental Bodily Injury - Unplanned,
unforeseen traumatic injury to the body.
●● Accidental Death and Dismemberment (AD&D)
Answer: An insurance policy which pays a specified amount or a
specified multiple of the insured's benefit if the insured dies, loses
his/her sight, or loses two limbs due to an accident.
●● Accidental Death Benefits
Answer: A policy rider that states that the cause of death will be
analyzed to determine if it complies with the policy description of
accidental death.
●● Accidental Death Insurance
,Answer: An insurance policy that provides payment if the insured's
death is the result of an accident.
●● Accumulation Period
Answer: The time over which the annuitant makes payments or
investments in an annuity, and when those payments earn interest tax
deferred.
●● Acquired Immunodeficiency Syndrome (AIDS)
Answer: An infectious and incurable disease caused by the human
immunodeficiency virus (HIV).
●● Activities of Daily Living (ADLs)
Answer: Activities individuals must do every day such as moving about,
getting dressed, eating, bathing, etc.
●● Actual Cash Value (ACV)
Answer: The required amount to pay damages or for property loss,
which is calculated based on the property's current replacement value
minus depreciation.
●● Actual Charge
Answer: The amount a physician or supplier actually bills for a
particular service or supply.
,●● Actuary
Answer: A person trained in the technical aspects of insurance and
related fields, particularly in the mathematics of insurance; a person
who, on behalf of the company, determines the mathematical probability
of loss.
●● Adhesion
Answer: A contract offered on a "take-it-or-leave-it" basis by an insurer,
in which the insured's only option is to accept or reject the contract. Any
ambiguities in the contract will be settled in favor of the insured.
●● Adjustable Life
Answer: Life insurance which permits changes in the face amount,
premium amount, period of protection, and the duration of the premium
payment period.
●● Adjuster
Answer: A representative of an insurance company who investigates and
acts on the behalf of the company to obtain agreements for the amount
of the insurance claim.
●● Administrator
Answer: An individual appointed by a court as a fiduciary to settle the
financial affairs and estate of a deceased person.
, ●● Admitted (Authorized) Insurer
Answer: An insurance company authorized and licensed to transact
business in a particular state.
●● Adult Day Care
Answer: A program for impaired adults that attempts to meet their
health, social, and functional needs in a setting away from their homes.
●● Adverse Selection
Answer: The tendency of risks with higher probability of loss to
purchase and maintain insurance more often than the risks who present
lower probability.
●● Agency
Answer: An insurance sales office or company.
●● Agent
Answer: An individual who is licensed to sell, negotiate, or effect
insurance contracts on behalf of an insurer.
●● Agent's Authority
Answer: Special powers granted to an agent by his or her agency
contract.
SOLUTIONS
●● Accident
Answer: An unplanned, unforeseen event which occurs suddenly and at
an unspecified place.
●● Accident Insurance
Answer: A type of insurance that protects the insured against loss due to
accidental bodily injury. Accidental Bodily Injury - Unplanned,
unforeseen traumatic injury to the body.
●● Accidental Death and Dismemberment (AD&D)
Answer: An insurance policy which pays a specified amount or a
specified multiple of the insured's benefit if the insured dies, loses
his/her sight, or loses two limbs due to an accident.
●● Accidental Death Benefits
Answer: A policy rider that states that the cause of death will be
analyzed to determine if it complies with the policy description of
accidental death.
●● Accidental Death Insurance
,Answer: An insurance policy that provides payment if the insured's
death is the result of an accident.
●● Accumulation Period
Answer: The time over which the annuitant makes payments or
investments in an annuity, and when those payments earn interest tax
deferred.
●● Acquired Immunodeficiency Syndrome (AIDS)
Answer: An infectious and incurable disease caused by the human
immunodeficiency virus (HIV).
●● Activities of Daily Living (ADLs)
Answer: Activities individuals must do every day such as moving about,
getting dressed, eating, bathing, etc.
●● Actual Cash Value (ACV)
Answer: The required amount to pay damages or for property loss,
which is calculated based on the property's current replacement value
minus depreciation.
●● Actual Charge
Answer: The amount a physician or supplier actually bills for a
particular service or supply.
,●● Actuary
Answer: A person trained in the technical aspects of insurance and
related fields, particularly in the mathematics of insurance; a person
who, on behalf of the company, determines the mathematical probability
of loss.
●● Adhesion
Answer: A contract offered on a "take-it-or-leave-it" basis by an insurer,
in which the insured's only option is to accept or reject the contract. Any
ambiguities in the contract will be settled in favor of the insured.
●● Adjustable Life
Answer: Life insurance which permits changes in the face amount,
premium amount, period of protection, and the duration of the premium
payment period.
●● Adjuster
Answer: A representative of an insurance company who investigates and
acts on the behalf of the company to obtain agreements for the amount
of the insurance claim.
●● Administrator
Answer: An individual appointed by a court as a fiduciary to settle the
financial affairs and estate of a deceased person.
, ●● Admitted (Authorized) Insurer
Answer: An insurance company authorized and licensed to transact
business in a particular state.
●● Adult Day Care
Answer: A program for impaired adults that attempts to meet their
health, social, and functional needs in a setting away from their homes.
●● Adverse Selection
Answer: The tendency of risks with higher probability of loss to
purchase and maintain insurance more often than the risks who present
lower probability.
●● Agency
Answer: An insurance sales office or company.
●● Agent
Answer: An individual who is licensed to sell, negotiate, or effect
insurance contracts on behalf of an insurer.
●● Agent's Authority
Answer: Special powers granted to an agent by his or her agency
contract.
