EXAMFX LIFE AND HEALTH EXAM NEWEST 2024-2025 ACTUAL EXAM
COMPLETE 300 QUESTIONS AND CORRECT DETAILED ANSWERS (VE
FIED ANSWERS) |ALREADY
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1. 1. What is the maximum civil penal- 3. $10,000
ty for violating the Superintendent's
cease and desist order?
(Choose from the following options)
1. $1,000
2. $5,000
3. $10,000
4. $15,000
2. 2. Which option is being utilized when 1. Paid-up additions
the insurer accumulates dividends at
interest and then uses the accumu-
lated dividends, plus interest, and the
policy cash value to pay the policy up
early?
(Choose from the following options)
1. Paid-up additions
2. Dividend Accumulation option
3. Paid-up option
4. Accumulation at Interest
3. 3. An insured owns a $50,000 whole $50,000
life policy. At age 47, the insured de-
cides to cancel his policy and exer- The face of the term policy would
cise the extended term option for the be the same as the face amount
policy's cash value, which is current- provided under the whole life pol-
ly $20,000. What would be the face icy.
amount of the new term policy?
(Choose from the following options)
1. $20,000
2. $25,000
3. $50,000
4. The face amount will be determined
by the insurer.
, EXAMFX LIFE AND HEALTH EXAM NEWEST 2024-2025 ACTUAL EXAM
COMPLETE 300 QUESTIONS AND CORRECT DETAILED ANSWERS (VE
FIED ANSWERS) |ALREADY
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4. 4. After a back injury, an insured is Monthly premium waiver and
disabled for a year. His insurance pol- monthly income
icy carries a Disability Income Benefit
rider. Which of the following benefits
will he receive? The Disability Income Benefit rider
waives the policy premiums, just
(Choose from the following options) like the Waiver of Premium rider.
1. Payments for life Unlike the Waiver of Premium rider,
2. Yearly premium waiver and income it also allows the insured to receive
3. Monthly premium waiver and a weekly or monthly income during
monthly income the disability period.
4. Percentage of medical costs paid by
the insurer
5. 5. A father owns a life insurance policy d) The insured's premiums will be
on his 15-year-old daughter. The poli- waived until she is 21.
cy contains the optional Payor Benefit
rider. If the father becomes disabled, If the payor (usually a parent or
what will happen to the life insurance guardian) becomes disabled for at
premiums? least 6 months or dies, the insurer
will waive the premiums until the
(Choose from the following options) minor reaches a certain age, such
1. The premiums will become tax de- as 21.
ductible until the insured's 18th birth-
day.
2. Since it is the policyowner, and
not the insured, who has become dis-
abled, the life insurance policy will not
be affected.
3. The insured will have to pay pre-
miums for 6 months. If at the end of
this period the father is still disabled,
the insured will be refunded the pre-
miums.
4. The insured's premiums will be
waived until she is 21.
6. 1. Yes, but not unfairly
, EXAMFX LIFE AND HEALTH EXAM NEWEST 2024-2025 ACTUAL EXAM
COMPLETE 300 QUESTIONS AND CORRECT DETAILED ANSWERS (VE
FIED ANSWERS) |ALREADY
Study online at https://quizlet.com/_fzma7h
6. Are insurance company underwrit-
ers allowed to discriminate?
(Choose from the following options)
1. Yes, but not unfairly
2. No, higher risks pay higher premium
3. No, discrimination is an unfair prac-
tice
4. Yes, but only for gender
7. 7. Which of the following is an exam- d) The trust that a client places in
ple of a producer's fiduciary duty? the producer in regard to handling
premiums.
(Choose from the following options) An agent acts in a fiduciary ca-
1. An obligation to state every known pacity, based upon trust and confi-
fact about the policy the producer is dence, when handling the financial
selling. affairs of their customers, including
2. A duty to base all transactions upon the handling of premiums.
the principle of Utmost Good Faith.
3. The obligation to tell the truth to the
best of one's knowledge
4. The trust that a client places in the
producer in regard to handling premi-
ums.
8. 8. Which of the following provisions in b) Bail-out
annuity contracts allow the owner to
surrender the annuity if interest rates Some annuity contracts contain a
drop to a specified level? bail-out provision. This provision al-
lows the owner to surrender the
(Choose from the following options) annuity without charge if interest
1. Annuitization rates drop a specified amount with-
2. Bail-out in a certain timeframe.
3. Surrender
4. Nonforfeiture
9. 9. An insurance policy that only re- d) Single premium whole life.
quires a payment of premium at its Single premium whole life requires
, EXAMFX LIFE AND HEALTH EXAM NEWEST 2024-2025 ACTUAL EXAM
COMPLETE 300 QUESTIONS AND CORRECT DETAILED ANSWERS (VE
FIED ANSWERS) |ALREADY
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inception, provides insurance protec- the entire premium to be paid in
tion for the life of the insured, and ma- one lump sum at the policy's incep-
tures at the insured's age 100 is called tion.
(Choose from the following options)
1. Modified Endowment Contract
(MEC).
2. Level term life.
3. Graded premium whole life.
4. Single premium whole life.
10. 10. All of the following are true regard- d) The payable premium amount
ing a decreasing term policy EXCEPT steadily declines throughout the
duration of the contract.
(Choose from the following options) Premiums remain level with a de-
1. The death benefit is $0 at the end of creasing term policy; only the face
the policy term. amount decreases.
2. The contract pays only in the event
of death during the term and there is
no cash value.
3. The face amount steadily declines
throughout the duration of the con-
tract.
4. The payable premium amount
steadily declines throughout the dura-
tion of the contract.
11. 11. An insured purchased a 10-year d) The insured may renew the pol-
level term life policy that is guaranteed
icy for another 10 years, but at a
renewable and convertible. What hap- higher premium rate.
pens at the end of the 10-year term? Policies that are guaranteed re-
newable and convertible may be
(Choose from the following options) renewed, without evidence of in-
1. The insured must provide evidence surability, for another like term, or
of insurability to renew the policy. may be converted to permanent in-
2. The insured may only convert the surance, without evidence of insur-
policy to another term policy. ability.
3. The insured may renew the policy
COMPLETE 300 QUESTIONS AND CORRECT DETAILED ANSWERS (VE
FIED ANSWERS) |ALREADY
Study online at https://quizlet.com/_fzma7h
1. 1. What is the maximum civil penal- 3. $10,000
ty for violating the Superintendent's
cease and desist order?
(Choose from the following options)
1. $1,000
2. $5,000
3. $10,000
4. $15,000
2. 2. Which option is being utilized when 1. Paid-up additions
the insurer accumulates dividends at
interest and then uses the accumu-
lated dividends, plus interest, and the
policy cash value to pay the policy up
early?
(Choose from the following options)
1. Paid-up additions
2. Dividend Accumulation option
3. Paid-up option
4. Accumulation at Interest
3. 3. An insured owns a $50,000 whole $50,000
life policy. At age 47, the insured de-
cides to cancel his policy and exer- The face of the term policy would
cise the extended term option for the be the same as the face amount
policy's cash value, which is current- provided under the whole life pol-
ly $20,000. What would be the face icy.
amount of the new term policy?
(Choose from the following options)
1. $20,000
2. $25,000
3. $50,000
4. The face amount will be determined
by the insurer.
, EXAMFX LIFE AND HEALTH EXAM NEWEST 2024-2025 ACTUAL EXAM
COMPLETE 300 QUESTIONS AND CORRECT DETAILED ANSWERS (VE
FIED ANSWERS) |ALREADY
Study online at https://quizlet.com/_fzma7h
4. 4. After a back injury, an insured is Monthly premium waiver and
disabled for a year. His insurance pol- monthly income
icy carries a Disability Income Benefit
rider. Which of the following benefits
will he receive? The Disability Income Benefit rider
waives the policy premiums, just
(Choose from the following options) like the Waiver of Premium rider.
1. Payments for life Unlike the Waiver of Premium rider,
2. Yearly premium waiver and income it also allows the insured to receive
3. Monthly premium waiver and a weekly or monthly income during
monthly income the disability period.
4. Percentage of medical costs paid by
the insurer
5. 5. A father owns a life insurance policy d) The insured's premiums will be
on his 15-year-old daughter. The poli- waived until she is 21.
cy contains the optional Payor Benefit
rider. If the father becomes disabled, If the payor (usually a parent or
what will happen to the life insurance guardian) becomes disabled for at
premiums? least 6 months or dies, the insurer
will waive the premiums until the
(Choose from the following options) minor reaches a certain age, such
1. The premiums will become tax de- as 21.
ductible until the insured's 18th birth-
day.
2. Since it is the policyowner, and
not the insured, who has become dis-
abled, the life insurance policy will not
be affected.
3. The insured will have to pay pre-
miums for 6 months. If at the end of
this period the father is still disabled,
the insured will be refunded the pre-
miums.
4. The insured's premiums will be
waived until she is 21.
6. 1. Yes, but not unfairly
, EXAMFX LIFE AND HEALTH EXAM NEWEST 2024-2025 ACTUAL EXAM
COMPLETE 300 QUESTIONS AND CORRECT DETAILED ANSWERS (VE
FIED ANSWERS) |ALREADY
Study online at https://quizlet.com/_fzma7h
6. Are insurance company underwrit-
ers allowed to discriminate?
(Choose from the following options)
1. Yes, but not unfairly
2. No, higher risks pay higher premium
3. No, discrimination is an unfair prac-
tice
4. Yes, but only for gender
7. 7. Which of the following is an exam- d) The trust that a client places in
ple of a producer's fiduciary duty? the producer in regard to handling
premiums.
(Choose from the following options) An agent acts in a fiduciary ca-
1. An obligation to state every known pacity, based upon trust and confi-
fact about the policy the producer is dence, when handling the financial
selling. affairs of their customers, including
2. A duty to base all transactions upon the handling of premiums.
the principle of Utmost Good Faith.
3. The obligation to tell the truth to the
best of one's knowledge
4. The trust that a client places in the
producer in regard to handling premi-
ums.
8. 8. Which of the following provisions in b) Bail-out
annuity contracts allow the owner to
surrender the annuity if interest rates Some annuity contracts contain a
drop to a specified level? bail-out provision. This provision al-
lows the owner to surrender the
(Choose from the following options) annuity without charge if interest
1. Annuitization rates drop a specified amount with-
2. Bail-out in a certain timeframe.
3. Surrender
4. Nonforfeiture
9. 9. An insurance policy that only re- d) Single premium whole life.
quires a payment of premium at its Single premium whole life requires
, EXAMFX LIFE AND HEALTH EXAM NEWEST 2024-2025 ACTUAL EXAM
COMPLETE 300 QUESTIONS AND CORRECT DETAILED ANSWERS (VE
FIED ANSWERS) |ALREADY
Study online at https://quizlet.com/_fzma7h
inception, provides insurance protec- the entire premium to be paid in
tion for the life of the insured, and ma- one lump sum at the policy's incep-
tures at the insured's age 100 is called tion.
(Choose from the following options)
1. Modified Endowment Contract
(MEC).
2. Level term life.
3. Graded premium whole life.
4. Single premium whole life.
10. 10. All of the following are true regard- d) The payable premium amount
ing a decreasing term policy EXCEPT steadily declines throughout the
duration of the contract.
(Choose from the following options) Premiums remain level with a de-
1. The death benefit is $0 at the end of creasing term policy; only the face
the policy term. amount decreases.
2. The contract pays only in the event
of death during the term and there is
no cash value.
3. The face amount steadily declines
throughout the duration of the con-
tract.
4. The payable premium amount
steadily declines throughout the dura-
tion of the contract.
11. 11. An insured purchased a 10-year d) The insured may renew the pol-
level term life policy that is guaranteed
icy for another 10 years, but at a
renewable and convertible. What hap- higher premium rate.
pens at the end of the 10-year term? Policies that are guaranteed re-
newable and convertible may be
(Choose from the following options) renewed, without evidence of in-
1. The insured must provide evidence surability, for another like term, or
of insurability to renew the policy. may be converted to permanent in-
2. The insured may only convert the surance, without evidence of insur-
policy to another term policy. ability.
3. The insured may renew the policy
