EXAM FX LIFE AND HEALTH TIP SHEET 2
ACTUAL TEST PAPER 2026 QUESTIONS
SOLUTIONS GRADED A+
◉ Accident.
Answer: An unplanned, unforeseen event which occurs suddenly
and at an unspecified place.
◉ Accident Insurance.
Answer: A type of insurance that protects the insured against loss
due to accidental bodily injury. Accidental Bodily Injury - Unplanned,
unforeseen traumatic injury to the body.
◉ Accidental Death and Dismemberment (AD&D).
Answer: An insurance policy which pays a specified amount or a
specified multiple of the insured's benefit if the insured dies, loses
his/her sight, or loses two limbs due to an accident.
◉ Accidental Death Benefits.
Answer: A policy rider that states that the cause of death will be
analyzed to determine if it complies with the policy description of
accidental death.
,◉ Accidental Death Insurance.
Answer: An insurance policy that provides payment if the insured's
death is the result of an accident.
◉ Accumulation Period.
Answer: The time over which the annuitant makes payments or
investments in an annuity, and when those payments earn interest
tax deferred.
◉ Acquired Immunodeficiency Syndrome (AIDS).
Answer: An infectious and incurable disease caused by the human
immunodeficiency virus (HIV).
◉ Activities of Daily Living (ADLs).
Answer: Activities individuals must do every day such as moving
about, getting dressed, eating, bathing, etc.
◉ Actual Cash Value (ACV).
Answer: The required amount to pay damages or for property loss,
which is calculated based on the property's current replacement
value minus depreciation.
◉ Actual Charge.
,Answer: The amount a physician or supplier actually bills for a
particular service or supply.
◉ Actuary.
Answer: A person trained in the technical aspects of insurance and
related fields, particularly in the mathematics of insurance; a person
who, on behalf of the company, determines the mathematical
probability of loss.
◉ Adhesion.
Answer: A contract offered on a "take-it-or-leave-it" basis by an
insurer, in which the insured's only option is to accept or reject the
contract. Any ambiguities in the contract will be settled in favor of
the insured.
◉ Adjustable Life.
Answer: Life insurance which permits changes in the face amount,
premium amount, period of protection, and the duration of the
premium payment period.
◉ Adjuster.
Answer: A representative of an insurance company who investigates
and acts on the behalf of the company to obtain agreements for the
amount of the insurance claim.
, ◉ Administrator.
Answer: An individual appointed by a court as a fiduciary to settle
the financial affairs and estate of a deceased person.
◉ Admitted (Authorized) Insurer.
Answer: An insurance company authorized and licensed to transact
business in a particular state.
◉ Adult Day Care.
Answer: A program for impaired adults that attempts to meet their
health, social, and functional needs in a setting away from their
homes.
◉ Adverse Selection.
Answer: The tendency of risks with higher probability of loss to
purchase and maintain insurance more often than the risks who
present lower probability.
◉ Agency.
Answer: An insurance sales office or company.
◉ Agent.
Answer: An individual who is licensed to sell, negotiate, or effect
insurance contracts on behalf of an insurer.
ACTUAL TEST PAPER 2026 QUESTIONS
SOLUTIONS GRADED A+
◉ Accident.
Answer: An unplanned, unforeseen event which occurs suddenly
and at an unspecified place.
◉ Accident Insurance.
Answer: A type of insurance that protects the insured against loss
due to accidental bodily injury. Accidental Bodily Injury - Unplanned,
unforeseen traumatic injury to the body.
◉ Accidental Death and Dismemberment (AD&D).
Answer: An insurance policy which pays a specified amount or a
specified multiple of the insured's benefit if the insured dies, loses
his/her sight, or loses two limbs due to an accident.
◉ Accidental Death Benefits.
Answer: A policy rider that states that the cause of death will be
analyzed to determine if it complies with the policy description of
accidental death.
,◉ Accidental Death Insurance.
Answer: An insurance policy that provides payment if the insured's
death is the result of an accident.
◉ Accumulation Period.
Answer: The time over which the annuitant makes payments or
investments in an annuity, and when those payments earn interest
tax deferred.
◉ Acquired Immunodeficiency Syndrome (AIDS).
Answer: An infectious and incurable disease caused by the human
immunodeficiency virus (HIV).
◉ Activities of Daily Living (ADLs).
Answer: Activities individuals must do every day such as moving
about, getting dressed, eating, bathing, etc.
◉ Actual Cash Value (ACV).
Answer: The required amount to pay damages or for property loss,
which is calculated based on the property's current replacement
value minus depreciation.
◉ Actual Charge.
,Answer: The amount a physician or supplier actually bills for a
particular service or supply.
◉ Actuary.
Answer: A person trained in the technical aspects of insurance and
related fields, particularly in the mathematics of insurance; a person
who, on behalf of the company, determines the mathematical
probability of loss.
◉ Adhesion.
Answer: A contract offered on a "take-it-or-leave-it" basis by an
insurer, in which the insured's only option is to accept or reject the
contract. Any ambiguities in the contract will be settled in favor of
the insured.
◉ Adjustable Life.
Answer: Life insurance which permits changes in the face amount,
premium amount, period of protection, and the duration of the
premium payment period.
◉ Adjuster.
Answer: A representative of an insurance company who investigates
and acts on the behalf of the company to obtain agreements for the
amount of the insurance claim.
, ◉ Administrator.
Answer: An individual appointed by a court as a fiduciary to settle
the financial affairs and estate of a deceased person.
◉ Admitted (Authorized) Insurer.
Answer: An insurance company authorized and licensed to transact
business in a particular state.
◉ Adult Day Care.
Answer: A program for impaired adults that attempts to meet their
health, social, and functional needs in a setting away from their
homes.
◉ Adverse Selection.
Answer: The tendency of risks with higher probability of loss to
purchase and maintain insurance more often than the risks who
present lower probability.
◉ Agency.
Answer: An insurance sales office or company.
◉ Agent.
Answer: An individual who is licensed to sell, negotiate, or effect
insurance contracts on behalf of an insurer.
