1 | Page
EXAMFX LIFE AND HEALTH EXAM NEWEST
ACTUAL EXAM COMPLETE 300 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) 2025/2026 |ALREADY GRADED A+
If an insurer must have its raters accepted by the
insurance department prior to using them, the insurer
would be operating in which of the following types of
jurisdictions? - CORRECT ANSWER>>Prior approval
All of the following are requirements of a contract
EXCEPT - CORRECT ANSWER>>there must be equal
consideration between the parties.
The more times an event is repeated, the more
predictable the outcome becomes. This is an example of
- CORRECT ANSWER>>The law of large numbers
What rule is used to determine the importance of a
representation? - CORRECT
,2 | Page
ANSWER>>The materiality of concealment
Insurer expenses include all of the following EXCEPT -
CORRECT ANSWER>>Policy
Premiums
The increase in the probability of a loss resulting from an
insureds dishonest tendencies is known as - CORRECT
ANSWER>>Moral hazard
Which of the following would an agent be guilty of her
misrepresenting the amount of dividends a policy will
pay? - CORRECT ANSWER>>a Misdemeanor
A person who acts, offers to act, or assumes to act in a
capacity where a license is
REQUIRED without having a valid license, is guilty of a -
CORRECT
ANSWER>>Misdemeanor
,3 | Page
Which is an agreement in which an insurer contracts
with a third party to against losses from insurance
policies it issues? - CORRECT ANSWER>>Reinsurance
What recourse does an insurer have if violation of a
material warranty on the part of the insured is
discovered? - CORRECT ANSWER>>Rescission of the
policy
Policies covered under the California Life and Health
Insurance Guarantee
Association include all of the following EXCEPT -
CORRECT ANSWER>>Self-funded group life.
According to the California Insurance Code, the
commissioner can disapprove a licensee's request to use
a fictitious name for any of the following reasons
EXCEPT that the - CORRECT ANSWER>>name Is the
licensee's actual name
, 4 | Page
Risk can be defined as all of the following EXCEPT -
CORRECT ANSWER>>cause of loss
What used in the California Insurance Code, the word
"may" is intended to be -
CORRECT ANSWER>>permissive
Which of the following statements regarding risk is TRUE
- CORRECT
ANSWER>>Only pure risk is insurable
What is it called when an insurer uses higher rates for an
individual solely based on religion, race, or ethnic
group? - CORRECT ANSWER>>unfair discrimination
Which of the following is a hazard? - CORRECT
ANSWER>>A condition that may increase the likelihood
of a loss occurring
EXAMFX LIFE AND HEALTH EXAM NEWEST
ACTUAL EXAM COMPLETE 300 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) 2025/2026 |ALREADY GRADED A+
If an insurer must have its raters accepted by the
insurance department prior to using them, the insurer
would be operating in which of the following types of
jurisdictions? - CORRECT ANSWER>>Prior approval
All of the following are requirements of a contract
EXCEPT - CORRECT ANSWER>>there must be equal
consideration between the parties.
The more times an event is repeated, the more
predictable the outcome becomes. This is an example of
- CORRECT ANSWER>>The law of large numbers
What rule is used to determine the importance of a
representation? - CORRECT
,2 | Page
ANSWER>>The materiality of concealment
Insurer expenses include all of the following EXCEPT -
CORRECT ANSWER>>Policy
Premiums
The increase in the probability of a loss resulting from an
insureds dishonest tendencies is known as - CORRECT
ANSWER>>Moral hazard
Which of the following would an agent be guilty of her
misrepresenting the amount of dividends a policy will
pay? - CORRECT ANSWER>>a Misdemeanor
A person who acts, offers to act, or assumes to act in a
capacity where a license is
REQUIRED without having a valid license, is guilty of a -
CORRECT
ANSWER>>Misdemeanor
,3 | Page
Which is an agreement in which an insurer contracts
with a third party to against losses from insurance
policies it issues? - CORRECT ANSWER>>Reinsurance
What recourse does an insurer have if violation of a
material warranty on the part of the insured is
discovered? - CORRECT ANSWER>>Rescission of the
policy
Policies covered under the California Life and Health
Insurance Guarantee
Association include all of the following EXCEPT -
CORRECT ANSWER>>Self-funded group life.
According to the California Insurance Code, the
commissioner can disapprove a licensee's request to use
a fictitious name for any of the following reasons
EXCEPT that the - CORRECT ANSWER>>name Is the
licensee's actual name
, 4 | Page
Risk can be defined as all of the following EXCEPT -
CORRECT ANSWER>>cause of loss
What used in the California Insurance Code, the word
"may" is intended to be -
CORRECT ANSWER>>permissive
Which of the following statements regarding risk is TRUE
- CORRECT
ANSWER>>Only pure risk is insurable
What is it called when an insurer uses higher rates for an
individual solely based on religion, race, or ethnic
group? - CORRECT ANSWER>>unfair discrimination
Which of the following is a hazard? - CORRECT
ANSWER>>A condition that may increase the likelihood
of a loss occurring
