EXAMFX LIFE AND HEALTH EXAM
NEWEST 2024-2025 ACTUAL EXAM
COMPLETE 300 QUESTIONS AND
CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY
1. What is the maximum civil penalty 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 - ✔✔3. $10,000
2. Which option is being utilized when the insurer accumulates dividends at
interest and then uses the accumulated dividends, plus interest, and the policy
cash value to pay the policy up early?
(Choose from the following options)
1. Paid-up additions
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,2. Dividend Accumulation option
3. Paid-up option
4. Accumulation at Interest - ✔✔1. Paid-up additions
3. An insured owns a $50,000 whole life policy. At age 47, the insured decides to
cancel his policy and exercise the extended term option for the policy's cash
value, which is currently $20,000. What would be the face 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. - ✔✔$50,000
The face of the term policy would be the same as the face amount provided
under the whole life policy.
4. After a back injury, an insured is disabled for a year. His insurance policy
carries a Disability Income Benefit rider. Which of the following benefits will he
receive?
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©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
,(Choose from the following options)
1. Payments for life
2. Yearly premium waiver and income
3. Monthly premium waiver and monthly income
4. Percentage of medical costs paid by the insurer - ✔✔Monthly premium
waiver and monthly income
The Disability Income Benefit rider waives the policy premiums, just like the
Waiver of Premium rider. Unlike the Waiver of Premium rider, it also allows the
insured to receive a weekly or monthly income during the disability period.
5. A father owns a life insurance policy on his 15-year-old daughter. The policy
contains the optional Payor Benefit rider. If the father becomes disabled, what
will happen to the life insurance premiums?
(Choose from the following options)
1. The premiums will become tax deductible until the insured's 18th birthday.
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©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
, 2. Since it is the policyowner, and not the insured, who has become disabled,
the life insurance policy will not be affected.
3. The insured will have to pay premiums for 6 months. If at the end of this
period the father is still disabled, the insured will be refunded the premiums.
4. The insured's premiums will be waived until she is 21. - ✔✔d) The insured's
premiums will be waived until she is 21.
If the payor (usually a parent or guardian) becomes disabled for at least 6
months or dies, the insurer will waive the premiums until the minor reaches a
certain age, such as 21.
6. Are insurance company underwriters 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 practice
4. Yes, but only for gender - ✔✔1. Yes, but not unfairly
7. Which of the following is an example of a producer's fiduciary duty?
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©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
NEWEST 2024-2025 ACTUAL EXAM
COMPLETE 300 QUESTIONS AND
CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |ALREADY
1. What is the maximum civil penalty 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 - ✔✔3. $10,000
2. Which option is being utilized when the insurer accumulates dividends at
interest and then uses the accumulated dividends, plus interest, and the policy
cash value to pay the policy up early?
(Choose from the following options)
1. Paid-up additions
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©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
,2. Dividend Accumulation option
3. Paid-up option
4. Accumulation at Interest - ✔✔1. Paid-up additions
3. An insured owns a $50,000 whole life policy. At age 47, the insured decides to
cancel his policy and exercise the extended term option for the policy's cash
value, which is currently $20,000. What would be the face 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. - ✔✔$50,000
The face of the term policy would be the same as the face amount provided
under the whole life policy.
4. After a back injury, an insured is disabled for a year. His insurance policy
carries a Disability Income Benefit rider. Which of the following benefits will he
receive?
2|Page
©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
,(Choose from the following options)
1. Payments for life
2. Yearly premium waiver and income
3. Monthly premium waiver and monthly income
4. Percentage of medical costs paid by the insurer - ✔✔Monthly premium
waiver and monthly income
The Disability Income Benefit rider waives the policy premiums, just like the
Waiver of Premium rider. Unlike the Waiver of Premium rider, it also allows the
insured to receive a weekly or monthly income during the disability period.
5. A father owns a life insurance policy on his 15-year-old daughter. The policy
contains the optional Payor Benefit rider. If the father becomes disabled, what
will happen to the life insurance premiums?
(Choose from the following options)
1. The premiums will become tax deductible until the insured's 18th birthday.
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©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
, 2. Since it is the policyowner, and not the insured, who has become disabled,
the life insurance policy will not be affected.
3. The insured will have to pay premiums for 6 months. If at the end of this
period the father is still disabled, the insured will be refunded the premiums.
4. The insured's premiums will be waived until she is 21. - ✔✔d) The insured's
premiums will be waived until she is 21.
If the payor (usually a parent or guardian) becomes disabled for at least 6
months or dies, the insurer will waive the premiums until the minor reaches a
certain age, such as 21.
6. Are insurance company underwriters 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 practice
4. Yes, but only for gender - ✔✔1. Yes, but not unfairly
7. Which of the following is an example of a producer's fiduciary duty?
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©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025.
