FX COMPREHENSIVE EXAM STUDY GUIDE
WITH COMPLETE SOLUTIONS
●● Which of the following policy components contain the company's
promise to pay?
Answer: Insurance clause
●● An insured has chosen joint and 2/3 survivor as the settlement
option. What does this mean to the beneficiaries?
Answer: The surviving beneficiary will continue receiving 2/3 of the
benefit paid when both beneficiaries were alive.
●● What is the purpose of a free-look period in insurance policies?
Answer:
●● All of the following are Nonforfeiture options EXCEPT
Answer: Interest only
●● The type of settlement option which pays throughout the lifetimes of
two or more beneficiaries is called
Answer: Joint and survivor
●● What is the purpose of a fixed-period settlement option?
, Answer: To provide a guaranteed income for a certain amount of time
●● A father owns a life insurance policy on his 15-year-old daughter.
The policy contains the optional Payor Benefit rider. If the father
becomes disabled, what will happen to the life insurance premiums?
Answer: The insured's premiums will be waived until she is 21
●● An insured purchases a policy in of 2008 and died in 2013. The
insurance company discovers at that time that the insured concealed
informati9n during the application process. What can they do?
Answer: Pay the death benefit
●● Which of the following factors determines the amount of each
installments paid in a Life Income Option arrangement?
Answer: Recipient's life expectancy and amount of principal
●● A rider attached to a life insurance policy that provides coverage on
the insured's family members is called the
Answer: Other-insured rider
●● The policyowner wants to make sure that upon his death, the life
policy will pay a portion of the proceeds annually to his spouse, but that
the principal will be paid to their children when they reach a certain age.
Which settlement option should the policyowner choose?
WITH COMPLETE SOLUTIONS
●● Which of the following policy components contain the company's
promise to pay?
Answer: Insurance clause
●● An insured has chosen joint and 2/3 survivor as the settlement
option. What does this mean to the beneficiaries?
Answer: The surviving beneficiary will continue receiving 2/3 of the
benefit paid when both beneficiaries were alive.
●● What is the purpose of a free-look period in insurance policies?
Answer:
●● All of the following are Nonforfeiture options EXCEPT
Answer: Interest only
●● The type of settlement option which pays throughout the lifetimes of
two or more beneficiaries is called
Answer: Joint and survivor
●● What is the purpose of a fixed-period settlement option?
, Answer: To provide a guaranteed income for a certain amount of time
●● A father owns a life insurance policy on his 15-year-old daughter.
The policy contains the optional Payor Benefit rider. If the father
becomes disabled, what will happen to the life insurance premiums?
Answer: The insured's premiums will be waived until she is 21
●● An insured purchases a policy in of 2008 and died in 2013. The
insurance company discovers at that time that the insured concealed
informati9n during the application process. What can they do?
Answer: Pay the death benefit
●● Which of the following factors determines the amount of each
installments paid in a Life Income Option arrangement?
Answer: Recipient's life expectancy and amount of principal
●● A rider attached to a life insurance policy that provides coverage on
the insured's family members is called the
Answer: Other-insured rider
●● The policyowner wants to make sure that upon his death, the life
policy will pay a portion of the proceeds annually to his spouse, but that
the principal will be paid to their children when they reach a certain age.
Which settlement option should the policyowner choose?
