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FX LIFE AND HEALTH EXAM QUESTIONS WITH COMPLETE SOLUTIONS
GUARANTEED PASS
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2026 UPDATE
A 10-year certain annuity with an installment refund is purchased. The annuitant dies after receiving
monthly payments for 5 years. How many remaining payments will the insurer make? - ANSWER ->60
payments
A life insurance is policy dividend is - ANSWER ->legally defined as a return of excess premium and not
taxable
When a family policy covers children, all of the following are true EXCEPT - ANSWER ->evidence of
insurability is required to convert coverage for children to permanent insurance.
Which of the following is NOT an option for the use of the policy dividends? - ANSWER ->Fund the
distribution of monthly income payments.
What is used to determine the amount of an annuity distribution that is exempt from taxation? -
ANSWER ->the exlcusion ratio.
An insured replaces an existing annuity with a new one and must pay a surrender charge for cancelling
the existing annuity. The new policy holds no greater financial benefits to the insured than the existing
contract. this is an example of - CORRECT
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ANSWER>>an unnecessary replacement
Which of the following is a correct statement about the premium payment modes?
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the total premium paid by a life policyowner for one policy year is: - ANSWER ->greater if the premium
is paid semiannually rather than annually.
The policyowner, age 50, has been paying the premiums on his whole life policy for fifteen years. He
needs the equivalent of one-third of his policy's cash value for two years. He wants to continue to
have the same amount of life insurance protection and he can afford to continue to pay the policy's
premium. Which of the following would appear to be his BEST course of action? - CORRECT
ANSWER>>Use the policy loan provision to borrow money from the policy, but keep making the
premium payments to keep the policy in force
According to the California Insurance Code, an "Insurance broker" is - ANSWER ->compensated for
transacting insurance on behalf of another person with an insurer.
The California Code of Regulations governing claim settlement practices prohibits all of the following
acts of unfair discrimination EXCEPT denial of claim based on -
CORRECT ANSWER>>Reckless behavior
If an insurer must have its raters accepted by the insurance department prior to using them, the
insurer would be operating in which of the following types of jurisdictions? - ANSWER -
>Prior approval
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All of the following are requirements of a contract EXCEPT - ANSWER ->there must be equal
consideration between the parties.
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The more times an event is repeated, the more predictable the outcome becomes. This is an example
of - ANSWER ->The law of large numbers
What rule is used to determine the importance of a representation? - CORRECT
ANSWER>>The materiality of concealment
Insurer expenses include all of the following EXCEPT - ANSWER >Policy
Premiums
The increase in the probability of a loss resulting from an insureds dishonest tendencies is known as
- ANSWER ->Moral hazard
Which of the following would an agent be guilty of her misrepresenting the amount of dividends a
policy will pay? -
ANSWER ->a Misdemeanor
A person who acts, offers to act, or assumes to act in a capacity where a license is
REQUIRED without having a valid license, is guilty of a - CORRECT
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ANSWER>>Misdemeanor
Which is an agreement in which an insurer contracts with a third party to against losses from
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insurance policies it issues? - ANSWER ->Reinsurance
What recourse does an insurer have if violation of a material warranty on the part of the insured is
discovered? - ANSWER -
>Rescission of the policy
Policies covered under the California Life and Health Insurance Guarantee
Association include all of the following EXCEPT - ANSWER >Selffunded group life.
According to the California Insurance Code, the commissioner can disapprove a licensee's request to
use a fictitious name for any of the following reasons EXCEPT that the - ANSWER ->name
Is the licensee's actual name
Risk can be defined as all of the following EXCEPT - ANSWER -
>cause of loss
What used in the California Insurance Code, the word "may" is intended to be -
CORRECT ANSWER>>permissive
FX LIFE AND HEALTH EXAM QUESTIONS WITH COMPLETE SOLUTIONS
GUARANTEED PASS
Page | 1
2026 UPDATE
A 10-year certain annuity with an installment refund is purchased. The annuitant dies after receiving
monthly payments for 5 years. How many remaining payments will the insurer make? - ANSWER ->60
payments
A life insurance is policy dividend is - ANSWER ->legally defined as a return of excess premium and not
taxable
When a family policy covers children, all of the following are true EXCEPT - ANSWER ->evidence of
insurability is required to convert coverage for children to permanent insurance.
Which of the following is NOT an option for the use of the policy dividends? - ANSWER ->Fund the
distribution of monthly income payments.
What is used to determine the amount of an annuity distribution that is exempt from taxation? -
ANSWER ->the exlcusion ratio.
An insured replaces an existing annuity with a new one and must pay a surrender charge for cancelling
the existing annuity. The new policy holds no greater financial benefits to the insured than the existing
contract. this is an example of - CORRECT
, 2 | Page
ANSWER>>an unnecessary replacement
Which of the following is a correct statement about the premium payment modes?
Page | 2
the total premium paid by a life policyowner for one policy year is: - ANSWER ->greater if the premium
is paid semiannually rather than annually.
The policyowner, age 50, has been paying the premiums on his whole life policy for fifteen years. He
needs the equivalent of one-third of his policy's cash value for two years. He wants to continue to
have the same amount of life insurance protection and he can afford to continue to pay the policy's
premium. Which of the following would appear to be his BEST course of action? - CORRECT
ANSWER>>Use the policy loan provision to borrow money from the policy, but keep making the
premium payments to keep the policy in force
According to the California Insurance Code, an "Insurance broker" is - ANSWER ->compensated for
transacting insurance on behalf of another person with an insurer.
The California Code of Regulations governing claim settlement practices prohibits all of the following
acts of unfair discrimination EXCEPT denial of claim based on -
CORRECT ANSWER>>Reckless behavior
If an insurer must have its raters accepted by the insurance department prior to using them, the
insurer would be operating in which of the following types of jurisdictions? - ANSWER -
>Prior approval
, 3 | Page
All of the following are requirements of a contract EXCEPT - ANSWER ->there must be equal
consideration between the parties.
Page | 3
The more times an event is repeated, the more predictable the outcome becomes. This is an example
of - ANSWER ->The law of large numbers
What rule is used to determine the importance of a representation? - CORRECT
ANSWER>>The materiality of concealment
Insurer expenses include all of the following EXCEPT - ANSWER >Policy
Premiums
The increase in the probability of a loss resulting from an insureds dishonest tendencies is known as
- ANSWER ->Moral hazard
Which of the following would an agent be guilty of her misrepresenting the amount of dividends a
policy will pay? -
ANSWER ->a Misdemeanor
A person who acts, offers to act, or assumes to act in a capacity where a license is
REQUIRED without having a valid license, is guilty of a - CORRECT
, 4 | Page
ANSWER>>Misdemeanor
Which is an agreement in which an insurer contracts with a third party to against losses from
Page | 4
insurance policies it issues? - ANSWER ->Reinsurance
What recourse does an insurer have if violation of a material warranty on the part of the insured is
discovered? - ANSWER -
>Rescission of the policy
Policies covered under the California Life and Health Insurance Guarantee
Association include all of the following EXCEPT - ANSWER >Selffunded group life.
According to the California Insurance Code, the commissioner can disapprove a licensee's request to
use a fictitious name for any of the following reasons EXCEPT that the - ANSWER ->name
Is the licensee's actual name
Risk can be defined as all of the following EXCEPT - ANSWER -
>cause of loss
What used in the California Insurance Code, the word "may" is intended to be -
CORRECT ANSWER>>permissive
