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EXAM FX LIFE AND HEALTH EXAM NEWEST ACTUAL
EXAM COMPLETE QUESTIONS AND 100%CORRECT
DETAILED ANSWERS (VERIFIED AND GRADED A+)
What is the definition of a unilateral contract? - ANSWER-
One-sided: only one party makes an enforceable promise
What is a viatical settlement? - ANSWER-Allows someone
living with a life-threatening condition to sell their existing
life insurance policy and use the proceeds when they are
most needed
Sells it to a third party for a discounted rate
What does the term life settlement refer to? - ANSWER-
And financial transaction in which the owner of a life
insurance policy sells a life insurance policy to a third party
for some form of compensation, usually cash
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What is the name of the insured who enters into a viatical
settlement? - ANSWER-viator
What is true regarding taxation of dividends in participating
policies? - ANSWER-Dividends are not taxable
What is an example of liquidity in a life insurance contract?
- ANSWER-The cash value available to the policyowner
When an employer offers to give an employee a wage
increase in the amount of the premium on a new life
insurance policy, this is called - ANSWER-An executive
bonus
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To attain currently insured status under Social Security, a
worker must have earned at least how many credits during
the last 13 quarters? - ANSWER-6 credits
What is true regarding health insurance underwriting for a
person with HIV? - ANSWER-The person may not be
declined for medical coverage solely based on HIV status
An agent is in the process of replacing the insured's
current health insurance policy with a new one? What
would be a proper action? - ANSWER-The old policy
should stay in force until the new policy is issued
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What is true about the requirements regarding HIV
exams? - ANSWER-The applicant must give prior
informed written consent
A small business owner is the insured under a disability
policy that funds a buy-sell agreement. If the owner dies or
becomes disabled, the policy would provide what? -
ANSWER-Cash to the owner's business partner to
accomplish a buyout
Most policies will pay the accident death benefits as long
as the death is caused by the accident and occurs within -
ANSWER-90 days
EXAM FX LIFE AND HEALTH EXAM NEWEST ACTUAL
EXAM COMPLETE QUESTIONS AND 100%CORRECT
DETAILED ANSWERS (VERIFIED AND GRADED A+)
What is the definition of a unilateral contract? - ANSWER-
One-sided: only one party makes an enforceable promise
What is a viatical settlement? - ANSWER-Allows someone
living with a life-threatening condition to sell their existing
life insurance policy and use the proceeds when they are
most needed
Sells it to a third party for a discounted rate
What does the term life settlement refer to? - ANSWER-
And financial transaction in which the owner of a life
insurance policy sells a life insurance policy to a third party
for some form of compensation, usually cash
,2|Page
What is the name of the insured who enters into a viatical
settlement? - ANSWER-viator
What is true regarding taxation of dividends in participating
policies? - ANSWER-Dividends are not taxable
What is an example of liquidity in a life insurance contract?
- ANSWER-The cash value available to the policyowner
When an employer offers to give an employee a wage
increase in the amount of the premium on a new life
insurance policy, this is called - ANSWER-An executive
bonus
,3|Page
To attain currently insured status under Social Security, a
worker must have earned at least how many credits during
the last 13 quarters? - ANSWER-6 credits
What is true regarding health insurance underwriting for a
person with HIV? - ANSWER-The person may not be
declined for medical coverage solely based on HIV status
An agent is in the process of replacing the insured's
current health insurance policy with a new one? What
would be a proper action? - ANSWER-The old policy
should stay in force until the new policy is issued
, 4|Page
What is true about the requirements regarding HIV
exams? - ANSWER-The applicant must give prior
informed written consent
A small business owner is the insured under a disability
policy that funds a buy-sell agreement. If the owner dies or
becomes disabled, the policy would provide what? -
ANSWER-Cash to the owner's business partner to
accomplish a buyout
Most policies will pay the accident death benefits as long
as the death is caused by the accident and occurs within -
ANSWER-90 days
