Exam FX 150 Questions with correct
answers
#1 What is another name for an Administrative-Services Only Arrangement - correct answer-Third-Party
Administrator
#3 Which of the following statements is True concerning the Accidental Death Rider ? - correct answer-It
will pay double or triple the face amount
# 4 On a disability income policy that contains the "Own Occupation" definition of total disability, the
insured will be entailed to benefits if they cannot perform? - correct answer-Their regular job
# 5 At what age dose individuals qualify for Medicare? - correct answer-65
#6 Which of the following is NOT true regarding the Life with Guaranteed Minimum Annuity settlement
option? - correct answer-It does NOT guarantee that the entire principle will be paid out
#7 According to the Nonforfeiture law, if the owner decides to surrender a deferred annuity prior to
annualization, the owner is entailed to witch of the following ? - correct answer-Guaranteed Surrender
value
#8 With of the following best describes the MIB? - correct answer-It is a nonprofit organization that
maintains underwriting information on applicants for life and health insurance.
#10 Which of the following is a short-term annuity that limits the amount paid to a certain fixed period
or until a certain fixed amount is liquidated? - correct answer-Annuity Certain
#11 What type of health insurance policy provides an employer with funds to train a replacement if a
valued employee become disabled? - correct answer-Key Person Disability
#12 The Superintendent may refuse to renew a license if a licensee is receiving more than 10% of the
aggregate commissions from controlled business in how many months? - correct answer-12
,#14 Attempting to determine how much insurance a family would require based upon their financial
objectives is know as ? - correct answer-Needs Approach
#15 Which of the following is NOT covered under Plan A in Medicap insurance? - correct answer-The
Medicare Part A deductible
#16 In which of the following scenarios will repayment of funds take place per the Medicaid Estate
Recovery Act? - correct answer-Before her death, a 23-year-old was living in a long-term nursing facility
paid for with Medicaid funds.
#17 According to the Insurance Frauds Privation Act, will the person who suspects a fraudulent
transaction be penalized for reporting it to the Superintendent? - correct answer-No, as long as the act is
reported in good faith
#20 Employer contributions made to a qualified plan - correct answer-Are subject to vesting
requirements
#21 Which of the following Life Insurance polices would be considered interest sensitive? - correct
answer-Universal Life
#22 Which of the following is correct about group health insurance policy issued in New York? - correct
answer-It cannot exclude newborn children from coverage
#25 Which of the following is NOT true regarding Workers Compensation? - correct answer-Benefits are
offered by the insurer
#28 An insurer offers a policy very similar to Medicare, although it differs slightly. An agent tells an
applicant that the policy is Medicare, since the polices are so similar anyway. Which of the following is
true? - correct answer-The practice is illegal
#29 Which of the following factors about the insured determines the amount of disability benefit that
the insured will receive? - correct answer-Income
,#30 Prior to purchasing a Medigap policy, a person must be enrolled in which of the following? - correct
answer-Parts A and B Medicare
#32 For the reported losses of an inured group to become more likely to equal the statistics probability
of loss for that particular class, the insured group must become - correct answer-Larger
#33 How is emergency care covered for a member of an HMO? - correct answer-A member of an HMO
can receive care in or out of the HMO service area, but care is preferred in the service area.
#34 In cases where a covered employee is eligible for Medicare benefits to treat end-stage renal disease
(ESRD) with dialysis or kidney transplant, which of the following is correct? - correct answer-Medicare is
the secondary payer during the first 30 months of treatment
#35 An applicant is discussing his options for Medicare supplement coverage with his agent. The
applicant is 65 years old and has just enrolled in Medicare Part A and Part B. What is the insurance
company obligated to do? - correct answer-Offer the supplement policy on a guaranteed issue basis
#36 Which of the following would NOT be considered an insurance producer? - correct answer-An
insurer's officer
#37 When is the annual open enrollment for state insurance exchanges? - correct answer-November 1
through January 31
#38 (come back to write it) - correct answer-The insured should contact the insurer to confirm her actual
Social Security befit amount. The SIS rider should pay the difference between the rider amount and the
actual benefit
#39 Which of the following entities has the authority to make changes to an insurance policy? - correct
answer-Insurer's executive officer
#40 The law states that an insurer is allowed to pay the entire Death Benefit to the insured if they
qualify to use the Accelerated Death Benefits Rider, however most insurers limit the amount of the
Death Benefit paid to - correct answer-50%
, #41 All of the following are characteristics of a group life insurance plan EXCEPT - correct answer-There
is a requirement to prove insurability on the part of the participants
#42 The continuing education (CE) requirement in this state. - correct answer-Consists of completing 15
hours of counting education each biennium
#45 Which of the following factors is NOT considered by an underwriter when determining the premium
rates for an individual seeking insurance? - correct answer-Race
#46 A small hardware store owner is involved in a car accident that renders him totally disabled for half
a year. Which type of insurance would help him pay for expenses of the company during the time of his
disability? - correct answer-Business overhead expense policy
#47 According to the Medical Loss Ratio (MLR), what is the minimum percentage of health coverage
premium that must be applied to actual medical care in a large group health plan? - correct answer-85%
#50 Which of the following is an entity that can be hired by an employer to handle all its employee
management tasks? - correct answer-Professional Employer Organization
#51 In a life settlement contract, who does the life settlement broker represent? - correct answer-The
owner
#52 What is the clause that describes the method of paying the death benefit in the event that the
insured and beneficiary are both killed in the same accident? - correct answer-Common Disaster Clause
#53 According to the Coordination of Benefits (COB) provisions in health insurance in this state. If
insurer overpaid on a claim, the insurer may recover the excess from all of the following EXCEPT -
correct answer-The Insurance Guaranty Association
#54 Which of the following does NOT have to be disclosed in a long term care (LTC) policy? - correct
answer-The aggregate amount of premiums due
answers
#1 What is another name for an Administrative-Services Only Arrangement - correct answer-Third-Party
Administrator
#3 Which of the following statements is True concerning the Accidental Death Rider ? - correct answer-It
will pay double or triple the face amount
# 4 On a disability income policy that contains the "Own Occupation" definition of total disability, the
insured will be entailed to benefits if they cannot perform? - correct answer-Their regular job
# 5 At what age dose individuals qualify for Medicare? - correct answer-65
#6 Which of the following is NOT true regarding the Life with Guaranteed Minimum Annuity settlement
option? - correct answer-It does NOT guarantee that the entire principle will be paid out
#7 According to the Nonforfeiture law, if the owner decides to surrender a deferred annuity prior to
annualization, the owner is entailed to witch of the following ? - correct answer-Guaranteed Surrender
value
#8 With of the following best describes the MIB? - correct answer-It is a nonprofit organization that
maintains underwriting information on applicants for life and health insurance.
#10 Which of the following is a short-term annuity that limits the amount paid to a certain fixed period
or until a certain fixed amount is liquidated? - correct answer-Annuity Certain
#11 What type of health insurance policy provides an employer with funds to train a replacement if a
valued employee become disabled? - correct answer-Key Person Disability
#12 The Superintendent may refuse to renew a license if a licensee is receiving more than 10% of the
aggregate commissions from controlled business in how many months? - correct answer-12
,#14 Attempting to determine how much insurance a family would require based upon their financial
objectives is know as ? - correct answer-Needs Approach
#15 Which of the following is NOT covered under Plan A in Medicap insurance? - correct answer-The
Medicare Part A deductible
#16 In which of the following scenarios will repayment of funds take place per the Medicaid Estate
Recovery Act? - correct answer-Before her death, a 23-year-old was living in a long-term nursing facility
paid for with Medicaid funds.
#17 According to the Insurance Frauds Privation Act, will the person who suspects a fraudulent
transaction be penalized for reporting it to the Superintendent? - correct answer-No, as long as the act is
reported in good faith
#20 Employer contributions made to a qualified plan - correct answer-Are subject to vesting
requirements
#21 Which of the following Life Insurance polices would be considered interest sensitive? - correct
answer-Universal Life
#22 Which of the following is correct about group health insurance policy issued in New York? - correct
answer-It cannot exclude newborn children from coverage
#25 Which of the following is NOT true regarding Workers Compensation? - correct answer-Benefits are
offered by the insurer
#28 An insurer offers a policy very similar to Medicare, although it differs slightly. An agent tells an
applicant that the policy is Medicare, since the polices are so similar anyway. Which of the following is
true? - correct answer-The practice is illegal
#29 Which of the following factors about the insured determines the amount of disability benefit that
the insured will receive? - correct answer-Income
,#30 Prior to purchasing a Medigap policy, a person must be enrolled in which of the following? - correct
answer-Parts A and B Medicare
#32 For the reported losses of an inured group to become more likely to equal the statistics probability
of loss for that particular class, the insured group must become - correct answer-Larger
#33 How is emergency care covered for a member of an HMO? - correct answer-A member of an HMO
can receive care in or out of the HMO service area, but care is preferred in the service area.
#34 In cases where a covered employee is eligible for Medicare benefits to treat end-stage renal disease
(ESRD) with dialysis or kidney transplant, which of the following is correct? - correct answer-Medicare is
the secondary payer during the first 30 months of treatment
#35 An applicant is discussing his options for Medicare supplement coverage with his agent. The
applicant is 65 years old and has just enrolled in Medicare Part A and Part B. What is the insurance
company obligated to do? - correct answer-Offer the supplement policy on a guaranteed issue basis
#36 Which of the following would NOT be considered an insurance producer? - correct answer-An
insurer's officer
#37 When is the annual open enrollment for state insurance exchanges? - correct answer-November 1
through January 31
#38 (come back to write it) - correct answer-The insured should contact the insurer to confirm her actual
Social Security befit amount. The SIS rider should pay the difference between the rider amount and the
actual benefit
#39 Which of the following entities has the authority to make changes to an insurance policy? - correct
answer-Insurer's executive officer
#40 The law states that an insurer is allowed to pay the entire Death Benefit to the insured if they
qualify to use the Accelerated Death Benefits Rider, however most insurers limit the amount of the
Death Benefit paid to - correct answer-50%
, #41 All of the following are characteristics of a group life insurance plan EXCEPT - correct answer-There
is a requirement to prove insurability on the part of the participants
#42 The continuing education (CE) requirement in this state. - correct answer-Consists of completing 15
hours of counting education each biennium
#45 Which of the following factors is NOT considered by an underwriter when determining the premium
rates for an individual seeking insurance? - correct answer-Race
#46 A small hardware store owner is involved in a car accident that renders him totally disabled for half
a year. Which type of insurance would help him pay for expenses of the company during the time of his
disability? - correct answer-Business overhead expense policy
#47 According to the Medical Loss Ratio (MLR), what is the minimum percentage of health coverage
premium that must be applied to actual medical care in a large group health plan? - correct answer-85%
#50 Which of the following is an entity that can be hired by an employer to handle all its employee
management tasks? - correct answer-Professional Employer Organization
#51 In a life settlement contract, who does the life settlement broker represent? - correct answer-The
owner
#52 What is the clause that describes the method of paying the death benefit in the event that the
insured and beneficiary are both killed in the same accident? - correct answer-Common Disaster Clause
#53 According to the Coordination of Benefits (COB) provisions in health insurance in this state. If
insurer overpaid on a claim, the insurer may recover the excess from all of the following EXCEPT -
correct answer-The Insurance Guaranty Association
#54 Which of the following does NOT have to be disclosed in a long term care (LTC) policy? - correct
answer-The aggregate amount of premiums due
