Exam FX Test Bank Questions With Complete Solutions

Which of the following is NOT true regarding the annuitant? a)The annuitant receives the annuity benefits. b)The annuitant must be a natural person. c)The annuitant cannot be the same person as the annuity owner. d)The annuitant's life expectancy is taken into consideration for the annuity. correct answer: c)The annuitant cannot be the same person as the annuity owner. The LEAST expensive first-year premium is found in which of the following policies? a)Increasing Term b)Decreasing Term c)Level Term d)Annually Renewable Term correct answer: d)Annually Renewable Term Which statement is NOT true regarding underwriting group health insurance? a)The cost of the policy is partially determined by the ratio of males to females in the group. b)Everyone in the group is covered, regardless of their medical history. c)The group is assessed individually for insurability. d)The premiums are reassessed annually. correct answer: c)The group is assessed individually for insurability. Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another? a)False advertising b)Rebating c)Twisting d)Switching correct answer: c)Twisting Which of the following disability income policies would have the highest premium? a)15-day waiting period / 5-year benefit period b)15-day waiting period / 10-year benefit period c)30-day waiting period / 10-year benefit period d)30-day waiting period / 5-year benefit period correct answer: b)15-day waiting period / 10-year benefit period An insured owns a life insurance policy. To be able to pay some of her medical bills, she withdraws a portion of the policy's cash value. There is a limit for a withdrawal and the insurer