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FX LIFE AND HEALTH EXAM QUESTIONS WITH
COMPLETE SOLUTIONS GUARANTEED PASS
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.
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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
ANSWER>>an unnecessary replacement
Which of the following is a correct statement about the premium
payment modes?
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
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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
All of the following are requirements of a contract EXCEPT -
ANSWER ->there must be equal consideration between the
parties.
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
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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
ANSWER>>Misdemeanor
Which is an agreement in which an insurer contracts with a third
party to against losses from insurance policies it issues? -
ANSWER ->Reinsurance
FX LIFE AND HEALTH EXAM QUESTIONS WITH
COMPLETE SOLUTIONS GUARANTEED PASS
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.
,2 | Page
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
ANSWER>>an unnecessary replacement
Which of the following is a correct statement about the premium
payment modes?
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
,3 | Page
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
All of the following are requirements of a contract EXCEPT -
ANSWER ->there must be equal consideration between the
parties.
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
, 4 | Page
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
ANSWER>>Misdemeanor
Which is an agreement in which an insurer contracts with a third
party to against losses from insurance policies it issues? -
ANSWER ->Reinsurance
