EXAMFX LIFE AND HEATH EXAM NEWEST 2024-
2025 ACTUAL EXAM THREE CHAPTERS (1,2 & 3)
WITH COMPLETE 150 QUESTIONS AND CORRECT
VERIFIED ANSWERS| EXAMFX LIFE AND HEALTH
(BEST FOR PRACTICE 2025)
CHAPTER 1
1. When would a misrepresentation on an insurance application be considered
fraud? - ANSWER-When it is intentional and material
2. What type of report provides information about the applicant's hobbies,
habits and financial status? - ANSWER-Investigative consumer report
3. Health insurance contracts are unilateral. What does that mean? -
ANSWER-Only one party makes a legally enforceable promise
4. In health insurance contracts, the insured is not legally bound to any
particular action; however, the insurer is obligated to pay for losses covered
by the policy. What contract element does this describe? - ANSWER-
Unilateral
5. If an applicant for a life insurance policy and the potential insured are two
different people, what would be the underwriter's main concern? -
ANSWER-The existence of insurable interest between the applicant and
the insured
,6. When must insurable interest exist in a life insurance policy? - ANSWER-
At the time of application
7. If an agent fails to obtain the applicant's signature on the insurance
application, what must the insurer do? - ANSWER-Send the application
back to the applicant for signature
8. What is the name of the process that insurance companies use to determine
whether or not an applicant is insurable? - ANSWER-Underwriting
9. What is the best way to handle incomplete insurance applications? -
ANSWER-Return the application to the applicant for completion
10.If an applicant does not receive a copy of the new insurance policy, who
would be held responsible? - ANSWER-The agent
11.What report is used to assess risk associated with a health insurance
applicant's lifestyle and character? - ANSWER-Investigative Consumer
Report
12.What entities make up the Medical Information Bureau? - ANSWER-
Insurers
13.How is the information obtained for an investigative consumer report? -
ANSWER-Through interviews with the applicant's associates, friends and
neighbors
14.What term describes the fee a person pays an insurance company to receive
coverage? - ANSWER-Premium
, 15.What is policy replacement? - ANSWER-A new policy is issued while an
existing policy is terminated or reissued with a reduction in cash value
16.Health contracts are prepared by insurers and must be accepted by the
insured on an as is basis. This describes what aspect of a health insurance
contract? - ANSWER-Contract of adhesion
17.When a change needs to be made on the application for insurance, which
is the best method for correcting the information? - ANSWER-Complete a
new application or ask the applicant to initial the correction on the original
application
18.In forming an insurance contract, when does an acceptance usually occur?
- ANSWER-When the insurer approves a prepaid application
19.Who is a field underwriter? - ANSWER-Agent/Producer
20.What law protects consumers from the circulation of inaccurate or obsolete
information? - ANSWER-The Fair Credit Reporting Act
21.During which stage in the insurance process do insurers evaluate
information that identifies adverse selection risks? - ANSWER-
Underwriting
22.Who must have insurable interest in the insured? - ANSWER-The
policyowner
2025 ACTUAL EXAM THREE CHAPTERS (1,2 & 3)
WITH COMPLETE 150 QUESTIONS AND CORRECT
VERIFIED ANSWERS| EXAMFX LIFE AND HEALTH
(BEST FOR PRACTICE 2025)
CHAPTER 1
1. When would a misrepresentation on an insurance application be considered
fraud? - ANSWER-When it is intentional and material
2. What type of report provides information about the applicant's hobbies,
habits and financial status? - ANSWER-Investigative consumer report
3. Health insurance contracts are unilateral. What does that mean? -
ANSWER-Only one party makes a legally enforceable promise
4. In health insurance contracts, the insured is not legally bound to any
particular action; however, the insurer is obligated to pay for losses covered
by the policy. What contract element does this describe? - ANSWER-
Unilateral
5. If an applicant for a life insurance policy and the potential insured are two
different people, what would be the underwriter's main concern? -
ANSWER-The existence of insurable interest between the applicant and
the insured
,6. When must insurable interest exist in a life insurance policy? - ANSWER-
At the time of application
7. If an agent fails to obtain the applicant's signature on the insurance
application, what must the insurer do? - ANSWER-Send the application
back to the applicant for signature
8. What is the name of the process that insurance companies use to determine
whether or not an applicant is insurable? - ANSWER-Underwriting
9. What is the best way to handle incomplete insurance applications? -
ANSWER-Return the application to the applicant for completion
10.If an applicant does not receive a copy of the new insurance policy, who
would be held responsible? - ANSWER-The agent
11.What report is used to assess risk associated with a health insurance
applicant's lifestyle and character? - ANSWER-Investigative Consumer
Report
12.What entities make up the Medical Information Bureau? - ANSWER-
Insurers
13.How is the information obtained for an investigative consumer report? -
ANSWER-Through interviews with the applicant's associates, friends and
neighbors
14.What term describes the fee a person pays an insurance company to receive
coverage? - ANSWER-Premium
, 15.What is policy replacement? - ANSWER-A new policy is issued while an
existing policy is terminated or reissued with a reduction in cash value
16.Health contracts are prepared by insurers and must be accepted by the
insured on an as is basis. This describes what aspect of a health insurance
contract? - ANSWER-Contract of adhesion
17.When a change needs to be made on the application for insurance, which
is the best method for correcting the information? - ANSWER-Complete a
new application or ask the applicant to initial the correction on the original
application
18.In forming an insurance contract, when does an acceptance usually occur?
- ANSWER-When the insurer approves a prepaid application
19.Who is a field underwriter? - ANSWER-Agent/Producer
20.What law protects consumers from the circulation of inaccurate or obsolete
information? - ANSWER-The Fair Credit Reporting Act
21.During which stage in the insurance process do insurers evaluate
information that identifies adverse selection risks? - ANSWER-
Underwriting
22.Who must have insurable interest in the insured? - ANSWER-The
policyowner
