exam fx texas life and health insurance.pdf file:///C:/Users/HP/Desktop/New%20folder/exam%20fx%20texas%2
Exam Fx Texas Life and Health Insurance
Exam Questions & Answers
1. What law protects consumers from the circulation of inaccurate or obsolete
information?
Answer The Fair Credit Reporting Act
2. What do individuals use to transfer their risk of loss to a larger group?
Answer In- surance
3. What term describes the fee a person pays an insurance company to start
coverage?
Answer Premium
4. 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 corrections on
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,exam fx texas life and health insurance.pdf file:///C:/Users/HP/Desktop/New%20folder/exam%20fx%20texas%2
the original application
5. how is the information obtained for an investigative consumer report?
Answer -
through interviews with the applicants associates, friends, and neighbors.
6. What risk classification would typically qualify for lower premiums?
Answer Pre- ferred Risk
7. what are the three risk classifications in life insurance?
Answer Standard, Substan- dard, Preferred
8. what is the main responsibility of a company's underwriting unit?
Answer Risk Selection
9. When would a misrepresentation be considered material?
Answer when it may alter the underwriting decision
10. What entities make up the Medical Information Bureau?
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Answer Insurers
11. if an applicant for an insurance policy and the potential insured are two
different people, what would be the underwriters main concern?
Answer the existence of insurable interest between the applicant and the insured
12. What is adverse selection?
Answer People who are more likely to submit insurance claims are seeking
insurance more often than preferred risks
13. What type of report provides information about the applicant's hobbies,
habits and financial status?
Answer Inspection report
14. At what point does coverage begin when an agent issues a conditional
receipt for a life insurance policy?
Answer either on the date of the application or the date of the medical exam
(whichever occurs last)
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15. what is the best way to handle incomplete insurance applications?
Answer return the application to the applicant for completion
16. when does an insurance policy go into effect?
Answer When the policy is delivered and the premium is paid
17. what are the three main instances when insurable interest exists in life
insurance?
Answer Insuring your own life, the life of a family member, or the life of a
business partner or someone who has a financial obligation to the policyholder.
18. Insurance is a contract that protects the insured from what?
Answer loss
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Exam Fx Texas Life and Health Insurance
Exam Questions & Answers
1. What law protects consumers from the circulation of inaccurate or obsolete
information?
Answer The Fair Credit Reporting Act
2. What do individuals use to transfer their risk of loss to a larger group?
Answer In- surance
3. What term describes the fee a person pays an insurance company to start
coverage?
Answer Premium
4. 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 corrections on
1 of 59 12/16/2024, 5:16
,exam fx texas life and health insurance.pdf file:///C:/Users/HP/Desktop/New%20folder/exam%20fx%20texas%2
the original application
5. how is the information obtained for an investigative consumer report?
Answer -
through interviews with the applicants associates, friends, and neighbors.
6. What risk classification would typically qualify for lower premiums?
Answer Pre- ferred Risk
7. what are the three risk classifications in life insurance?
Answer Standard, Substan- dard, Preferred
8. what is the main responsibility of a company's underwriting unit?
Answer Risk Selection
9. When would a misrepresentation be considered material?
Answer when it may alter the underwriting decision
10. What entities make up the Medical Information Bureau?
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,exam fx texas life and health insurance.pdf file:///C:/Users/HP/Desktop/New%20folder/exam%20fx%20texas%2
Answer Insurers
11. if an applicant for an insurance policy and the potential insured are two
different people, what would be the underwriters main concern?
Answer the existence of insurable interest between the applicant and the insured
12. What is adverse selection?
Answer People who are more likely to submit insurance claims are seeking
insurance more often than preferred risks
13. What type of report provides information about the applicant's hobbies,
habits and financial status?
Answer Inspection report
14. At what point does coverage begin when an agent issues a conditional
receipt for a life insurance policy?
Answer either on the date of the application or the date of the medical exam
(whichever occurs last)
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,exam fx texas life and health insurance.pdf file:///C:/Users/HP/Desktop/New%20folder/exam%20fx%20texas%2
15. what is the best way to handle incomplete insurance applications?
Answer return the application to the applicant for completion
16. when does an insurance policy go into effect?
Answer When the policy is delivered and the premium is paid
17. what are the three main instances when insurable interest exists in life
insurance?
Answer Insuring your own life, the life of a family member, or the life of a
business partner or someone who has a financial obligation to the policyholder.
18. Insurance is a contract that protects the insured from what?
Answer loss
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