4/1/25, 5:04 PM EXAMFX EXAM AND PRACTICE EXAM NEWEST ACTUAL EXAM COMPLETE QUESTIONS AND CORRECT DETAILED ANSWE…
EXAMFX EXAM AND PRACTICE EXAM NEWEST
ACTUAL EXAM COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+
Save
Terms in this set (150)
key person insurance can Pay the death benefit to the estate of the insured
provide protection for all
of the following economic
losses to a business
EXCEPT
a. Provide deferred
compensation retirement
benefit if the insured key
person survives to
retirement
b. Fund the expenses of
finding a suitable
replacement following the
death of an employee
c. Fund the cost of training
a current employee to
perform the duties of a
deceased employee.
d. Pay the death benefit to
the estate of the insured.
https://quizlet.com/1025656816/examfx-exam-and-practice-exam-newest-actual-exam-complete-questions-and-correct-detailed-answers-verified-ans… 1/28
,4/1/25, 5:04 PM EXAMFX EXAM AND PRACTICE EXAM NEWEST ACTUAL EXAM COMPLETE QUESTIONS AND CORRECT DETAILED ANSWE…
What is the purpose of a To allow the business buyout in case of the owners
disability buy-sell disability
agreement?
Which of the following C
statements is INCORRECT An MEC must always pass the 7-Pay test
concerning Modified
Endowment Contracts
(MECS)?
A) A primary purpose of
the regulations governing
MEC's was to reduce
incentives for the use of
life insurance as a short-
term investment vehicle.
B) A distribution from an
MEC may be subject to a
10% penalty if withdrawn
prior to 59.5
C) An MEC must always
pass the 7-pay test
D) A life insurance policy
failing the 7-pay test is
classified as an MEC
An annuity owner receives Fixed
the same guaranteed
payment every month.
What type of annuity is it?
Single
Guaranteed
Immediate
Fixed
https://quizlet.com/1025656816/examfx-exam-and-practice-exam-newest-actual-exam-complete-questions-and-correct-detailed-answers-verified-ans… 2/28
, 4/1/25, 5:04 PM EXAMFX EXAM AND PRACTICE EXAM NEWEST ACTUAL EXAM COMPLETE QUESTIONS AND CORRECT DETAILED ANSWE…
Bill is approaching Acute
retirement age and is
concerned about having
proper coverage should
he have to be placed in a
LTC facility. Bill's agent
told him that LTC policies
would provide coverage
at all of the following
levels EXCEPT
Skilled
Acute
Custodian
Intermediate
In health insurance, what is A percentage of the cost of service that the insured
coinsurance? and the insurer share
The policyowner has an A collateral Assignment
option to pledge the life
insurance policy as
collateral for a bank loan.
This is called
on an accidental death Principal sum
and dismemberment
(AD&D) policy, the death
benefit payable is known
as the
what happens to the copy It becomes part of the entire contract
of the application for
health insurance once the
policy is issued
https://quizlet.com/1025656816/examfx-exam-and-practice-exam-newest-actual-exam-complete-questions-and-correct-detailed-answers-verified-ans… 3/28
EXAMFX EXAM AND PRACTICE EXAM NEWEST
ACTUAL EXAM COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+
Save
Terms in this set (150)
key person insurance can Pay the death benefit to the estate of the insured
provide protection for all
of the following economic
losses to a business
EXCEPT
a. Provide deferred
compensation retirement
benefit if the insured key
person survives to
retirement
b. Fund the expenses of
finding a suitable
replacement following the
death of an employee
c. Fund the cost of training
a current employee to
perform the duties of a
deceased employee.
d. Pay the death benefit to
the estate of the insured.
https://quizlet.com/1025656816/examfx-exam-and-practice-exam-newest-actual-exam-complete-questions-and-correct-detailed-answers-verified-ans… 1/28
,4/1/25, 5:04 PM EXAMFX EXAM AND PRACTICE EXAM NEWEST ACTUAL EXAM COMPLETE QUESTIONS AND CORRECT DETAILED ANSWE…
What is the purpose of a To allow the business buyout in case of the owners
disability buy-sell disability
agreement?
Which of the following C
statements is INCORRECT An MEC must always pass the 7-Pay test
concerning Modified
Endowment Contracts
(MECS)?
A) A primary purpose of
the regulations governing
MEC's was to reduce
incentives for the use of
life insurance as a short-
term investment vehicle.
B) A distribution from an
MEC may be subject to a
10% penalty if withdrawn
prior to 59.5
C) An MEC must always
pass the 7-pay test
D) A life insurance policy
failing the 7-pay test is
classified as an MEC
An annuity owner receives Fixed
the same guaranteed
payment every month.
What type of annuity is it?
Single
Guaranteed
Immediate
Fixed
https://quizlet.com/1025656816/examfx-exam-and-practice-exam-newest-actual-exam-complete-questions-and-correct-detailed-answers-verified-ans… 2/28
, 4/1/25, 5:04 PM EXAMFX EXAM AND PRACTICE EXAM NEWEST ACTUAL EXAM COMPLETE QUESTIONS AND CORRECT DETAILED ANSWE…
Bill is approaching Acute
retirement age and is
concerned about having
proper coverage should
he have to be placed in a
LTC facility. Bill's agent
told him that LTC policies
would provide coverage
at all of the following
levels EXCEPT
Skilled
Acute
Custodian
Intermediate
In health insurance, what is A percentage of the cost of service that the insured
coinsurance? and the insurer share
The policyowner has an A collateral Assignment
option to pledge the life
insurance policy as
collateral for a bank loan.
This is called
on an accidental death Principal sum
and dismemberment
(AD&D) policy, the death
benefit payable is known
as the
what happens to the copy It becomes part of the entire contract
of the application for
health insurance once the
policy is issued
https://quizlet.com/1025656816/examfx-exam-and-practice-exam-newest-actual-exam-complete-questions-and-correct-detailed-answers-verified-ans… 3/28
