Exam FX Life Insurance Test |74
Questions with Solutions
50/50 - - Ray has an individual major medical policy that requires a
coinsurance payment. Ray rarely visits his physician and would prefer to pay
the lowest premium possible. Which coinsurance arranngement would be
best for Ray?
- Single payment or periodic payments - - Which two terms are associated
directly with the way an annuity is funded?
- An insured borrows money from the bank and makes a collateal
assignment of a part of the death benefit to secure the loan - - All of the
following are examples of thirs party ownership of life insurance
- Reduction of premium - - An insured pays $1,200 annually for her life
insurance premium. The insured applies this year's $300 worth of
accumulated dividends to the next year's premiums, thus reducing it to
$900. What option does this describe?
- Convert to an individual policy - - A small company offers group insurance
to its employees, but recently has decided to terminate the health insurance
contract, leaving the workers without insurance. What can the employees do
regarding their insurance?
- Free-Look period - - What phase begins after a new policy is delivered?
- Revocable - - An insured want to name her husband as the beneficiary of
her health policy. She also wishes to retain all of the rights of ownership. The
insured should have herhusband named as what type of beneficiary?
- 100 - - 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
- Replacement rule - - Which rule would apply if an agent knows an
applicant is going to cash in an old policy and use the funds to purchase new
insurance?
- Nonforfeiture values - - Which term secribes the benefits of a life
insurance policy that the policyowner does not automatically relinquish even
if the policy lapses?
- Twisting - - Agents who persaude insureds to cancel a policy in favor of
another one when it might not be in the insured's best interest are guilty of
, - Certificate holder - - If an employee is accepted into a group insurance
plan, which status will the employee have?
- Outline of Coverage - - Which document helps ensure that full and fair
disclosure is provided to the recipient of a policy?
- 5 - - A licensed agent must complete how many hours of continuing
education specific to ethics and regulatory updates?
- The pre-existing condition waiting period fulfilled in the old policy will be
transferred to the ne wpolicy, the new one picking up where the old on left
off - - 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?
- That its policies are covered by a state Guaranty Association - - Which of
the following may NOT be included in an insurance company's
advertisement?
- The insured over the age of 64 - - Who does the secondary addressee
provision protect?
- The insurance contract - - Which of the following is an agreement between
an insured and an insurer, where the insurer agrees to indemnify the insured
for specific losses in exchange for a premium?
- The individual insured - - In a group policy, who is issued a certificate of
insurance?
- No, the group must be formed for a purpose other than obtaining group
insurance - - Can a group that is formed for the sole purpose of obtaining
group insurance qualify for group coverage?
- $50,000 - - An employee will be taxed on the cost of group life insurnace
paid by the employer if the amount of coverage exceeds
- 3 - - In this state, long-term care benefits may be triggered by inability to
perform how many activities of daily living?
- If the employee enrolls within a certain time period - - Under what
conditions will proof of insurability NOT be required of an employee wanting
to enroll in a group insurance plan?
- The date the summary was prepared - - Which of the following dates must
be contained in a policy summary?
Questions with Solutions
50/50 - - Ray has an individual major medical policy that requires a
coinsurance payment. Ray rarely visits his physician and would prefer to pay
the lowest premium possible. Which coinsurance arranngement would be
best for Ray?
- Single payment or periodic payments - - Which two terms are associated
directly with the way an annuity is funded?
- An insured borrows money from the bank and makes a collateal
assignment of a part of the death benefit to secure the loan - - All of the
following are examples of thirs party ownership of life insurance
- Reduction of premium - - An insured pays $1,200 annually for her life
insurance premium. The insured applies this year's $300 worth of
accumulated dividends to the next year's premiums, thus reducing it to
$900. What option does this describe?
- Convert to an individual policy - - A small company offers group insurance
to its employees, but recently has decided to terminate the health insurance
contract, leaving the workers without insurance. What can the employees do
regarding their insurance?
- Free-Look period - - What phase begins after a new policy is delivered?
- Revocable - - An insured want to name her husband as the beneficiary of
her health policy. She also wishes to retain all of the rights of ownership. The
insured should have herhusband named as what type of beneficiary?
- 100 - - 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
- Replacement rule - - Which rule would apply if an agent knows an
applicant is going to cash in an old policy and use the funds to purchase new
insurance?
- Nonforfeiture values - - Which term secribes the benefits of a life
insurance policy that the policyowner does not automatically relinquish even
if the policy lapses?
- Twisting - - Agents who persaude insureds to cancel a policy in favor of
another one when it might not be in the insured's best interest are guilty of
, - Certificate holder - - If an employee is accepted into a group insurance
plan, which status will the employee have?
- Outline of Coverage - - Which document helps ensure that full and fair
disclosure is provided to the recipient of a policy?
- 5 - - A licensed agent must complete how many hours of continuing
education specific to ethics and regulatory updates?
- The pre-existing condition waiting period fulfilled in the old policy will be
transferred to the ne wpolicy, the new one picking up where the old on left
off - - 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?
- That its policies are covered by a state Guaranty Association - - Which of
the following may NOT be included in an insurance company's
advertisement?
- The insured over the age of 64 - - Who does the secondary addressee
provision protect?
- The insurance contract - - Which of the following is an agreement between
an insured and an insurer, where the insurer agrees to indemnify the insured
for specific losses in exchange for a premium?
- The individual insured - - In a group policy, who is issued a certificate of
insurance?
- No, the group must be formed for a purpose other than obtaining group
insurance - - Can a group that is formed for the sole purpose of obtaining
group insurance qualify for group coverage?
- $50,000 - - An employee will be taxed on the cost of group life insurnace
paid by the employer if the amount of coverage exceeds
- 3 - - In this state, long-term care benefits may be triggered by inability to
perform how many activities of daily living?
- If the employee enrolls within a certain time period - - Under what
conditions will proof of insurability NOT be required of an employee wanting
to enroll in a group insurance plan?
- The date the summary was prepared - - Which of the following dates must
be contained in a policy summary?
