HEALTH INSURANCE (EXAM FX)
2026/2027 ACTUAL QUESTIONS WITH
VERIFIED ANSWERS.
Key Person Disability - correct answer-A contract purchased by
an employer to insure the life of an important employee; owned
by the business, premium paid by the business, and the
beneficiary is the business
Disability Buy-Sell Policy - correct answer-Specifies how the
business will pass between owners when one of the owners
dies or becomes disabled; usually provided in one lump-sum
Business Overhead Expense Policy - correct answer-Insurance
for small business owners to help with costs of keeping the
business open (not counting their own lost income) in the event
of their disability; premiums are tax deductible to the business,
but the benefits received are taxable to the business
Quarter of Coverage (QC) - correct answer-More commonly
called "Credits"; a system used to determine if someone
qualifies for Social Security benefits; one may only earn a
maximm of 4 credits every year
,Fully Insured (Social Security) - correct answer-Refers to
someone who has earned 40 credits (the equivalent of 10 years
of work) and is entitled to recieve SS retirement, Medicare, and
suvivor benefits
Currently Insured - correct answer-AKA partially insured;
someone who has earned 6 credits during the last 13-quarter
period (ending with the quarter where the insured dies,
becomes disabled, or entitled to old-age insurance benefits)
Waiting Period - correct answer-Elimination period for SS
disability benefits is 5 months; benefits start at the beginning of
the 6th month and aren't retroactive
Coercion - correct answer-Forceful act or threat used to
influence a person to act against his will
Domestic Insurer - correct answer-An insurance company that
operates in the same state from which it is formed
, Foreign Insurer - correct answer-An insurance company that
operates in a different state from which it is formed
Alien Insurer - correct answer-An insurance company that
operates in outside of the US
Stock Company - correct answer-Company owned by
stockholders who share in any profits or losses; issue
nonparticipating policies and pay taxable dividends to the
stockholders
Mutual Company - correct answer-Company owned by
policyowners; issue participating policies and MAY provide
owners with a return of excess premiums (nontaxable
dividends)
Fraternal Benefit Society - correct answer-An organization
formed to provide its members with mutual aid, these members
may be from other organizations such as an affiliated lodge or
religious organization; not subject to the same regulations that
apply to other insurers (they are considered charitable
institutions)
2026/2027 ACTUAL QUESTIONS WITH
VERIFIED ANSWERS.
Key Person Disability - correct answer-A contract purchased by
an employer to insure the life of an important employee; owned
by the business, premium paid by the business, and the
beneficiary is the business
Disability Buy-Sell Policy - correct answer-Specifies how the
business will pass between owners when one of the owners
dies or becomes disabled; usually provided in one lump-sum
Business Overhead Expense Policy - correct answer-Insurance
for small business owners to help with costs of keeping the
business open (not counting their own lost income) in the event
of their disability; premiums are tax deductible to the business,
but the benefits received are taxable to the business
Quarter of Coverage (QC) - correct answer-More commonly
called "Credits"; a system used to determine if someone
qualifies for Social Security benefits; one may only earn a
maximm of 4 credits every year
,Fully Insured (Social Security) - correct answer-Refers to
someone who has earned 40 credits (the equivalent of 10 years
of work) and is entitled to recieve SS retirement, Medicare, and
suvivor benefits
Currently Insured - correct answer-AKA partially insured;
someone who has earned 6 credits during the last 13-quarter
period (ending with the quarter where the insured dies,
becomes disabled, or entitled to old-age insurance benefits)
Waiting Period - correct answer-Elimination period for SS
disability benefits is 5 months; benefits start at the beginning of
the 6th month and aren't retroactive
Coercion - correct answer-Forceful act or threat used to
influence a person to act against his will
Domestic Insurer - correct answer-An insurance company that
operates in the same state from which it is formed
, Foreign Insurer - correct answer-An insurance company that
operates in a different state from which it is formed
Alien Insurer - correct answer-An insurance company that
operates in outside of the US
Stock Company - correct answer-Company owned by
stockholders who share in any profits or losses; issue
nonparticipating policies and pay taxable dividends to the
stockholders
Mutual Company - correct answer-Company owned by
policyowners; issue participating policies and MAY provide
owners with a return of excess premiums (nontaxable
dividends)
Fraternal Benefit Society - correct answer-An organization
formed to provide its members with mutual aid, these members
may be from other organizations such as an affiliated lodge or
religious organization; not subject to the same regulations that
apply to other insurers (they are considered charitable
institutions)
