EXAM FX LIFE AND HEALTH TIP SHEET 2
CERTIFICATION ASSESSMENT 2026 VERIFIED
ANSWERS GRADED A+
◉ Contract Characteristics.
Answer: -Personal (between an insurer and individual )
-Aleatory (exchange of unequal values)
-Unilateral (only one party is legally bound to a contract)
-Adhesion (contracts are accepted bu the applicants as is)
-Conditional (both parties must meet certain conditions)
◉ Legal Terms.
Answer: -Representation (a Statement believed to be true to the best
of ones's knowledge)
Misrepresentation (an untrue statement on the insurance
application)
-Material misrepresentation (a statement that, if discovered, can
alter the underwriting decision)
-Warranty (An absolutely true statement)
Concealment (Intentional withholding of material information)
-Fraud (intentional act with the purpose of deceiving)
,◉ Ideally Insurable Risk.
Answer: -Due to chance
-Definite and measurable
-Statistically predictable
-Not catastrophic
-Randomly selected from a large pool
◉ Law of Agency.
Answer: acts of the agents within the scope of their authority are
deemed to be the acts of the insurer. Agents have 3 types of
authority.
◉ 3 Types of authority.
Answer: -Express (written in the contract)
-Implied (assumed necessary to conduct business
-Apparent (based on agents words and actions)
◉ Insurable interest.
Answer: financial interest in the life of another person or in a piece
of property
◉ Solicitation of Insurance.
, Answer: Attempt to persuade a person to buy a policy
◉ Underwriting.
Answer: Risk selection and classification
◉ Solicitation and Sales Presentation.
Answer: -Advertisement (Must be truthful and not misleading)
-Illustrations (presentation of nonguaranteed elements)
-Buyer's guide (Generic information about insurance policies)
-Policy summary (specific information about policy and elements)
◉ Underwriting Field and Company.
Answer: Application Part I- General Information
Part II- Medical Information, Agent Report
Company underwriting multiple sources of information (application,
consumer report, MIB)
Risk Classifications: preferred, standard, and substandard.
◉ Premium Determination.
CERTIFICATION ASSESSMENT 2026 VERIFIED
ANSWERS GRADED A+
◉ Contract Characteristics.
Answer: -Personal (between an insurer and individual )
-Aleatory (exchange of unequal values)
-Unilateral (only one party is legally bound to a contract)
-Adhesion (contracts are accepted bu the applicants as is)
-Conditional (both parties must meet certain conditions)
◉ Legal Terms.
Answer: -Representation (a Statement believed to be true to the best
of ones's knowledge)
Misrepresentation (an untrue statement on the insurance
application)
-Material misrepresentation (a statement that, if discovered, can
alter the underwriting decision)
-Warranty (An absolutely true statement)
Concealment (Intentional withholding of material information)
-Fraud (intentional act with the purpose of deceiving)
,◉ Ideally Insurable Risk.
Answer: -Due to chance
-Definite and measurable
-Statistically predictable
-Not catastrophic
-Randomly selected from a large pool
◉ Law of Agency.
Answer: acts of the agents within the scope of their authority are
deemed to be the acts of the insurer. Agents have 3 types of
authority.
◉ 3 Types of authority.
Answer: -Express (written in the contract)
-Implied (assumed necessary to conduct business
-Apparent (based on agents words and actions)
◉ Insurable interest.
Answer: financial interest in the life of another person or in a piece
of property
◉ Solicitation of Insurance.
, Answer: Attempt to persuade a person to buy a policy
◉ Underwriting.
Answer: Risk selection and classification
◉ Solicitation and Sales Presentation.
Answer: -Advertisement (Must be truthful and not misleading)
-Illustrations (presentation of nonguaranteed elements)
-Buyer's guide (Generic information about insurance policies)
-Policy summary (specific information about policy and elements)
◉ Underwriting Field and Company.
Answer: Application Part I- General Information
Part II- Medical Information, Agent Report
Company underwriting multiple sources of information (application,
consumer report, MIB)
Risk Classifications: preferred, standard, and substandard.
◉ Premium Determination.
