EXAMFX LIFE AND HEALTH EXAM QUESTIONS |
TESTED AND PROVEN ANSWERS | LATEST UPDATE
2024/2025 100% (GRADE A+)
1. What is the maximum civil penalty for violating the Superintendent's cease and desist
order?
(Choose from the following options)
1. $1,000
2. $5,000
3. $10,000
4. $15,000
Ans>> 3. $10,000
2. Which option is being utilized when the insurer accumulates dividends at interest and
then uses the accumulated dividends, plus interest, and the policy cash value to pay the
policy up early?
(Choose from the following options)
1
,1. Paid-up additions
2. Dividend Accumulation option
3. Paid-up option
4. Accumulation at Interest
Ans>> 1. Paid-up additions
3. An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his
policy and exercise the extended term option for the policy's cash value, which is currently
$20,000. What would be the face amount of the new term policy?
(Choose from the following options)
1. $20,000
2. $25,000
3. $50,000
4. The face amount will be determined by the insurer.
Ans>> $50,000
2
,The face of the term policy would be the same as the face amount provided under the
whole life policy.
4. After a back injury, an insured is disabled for a year. His insurance policy carries a
Disability Income Benefit rider. Which of the following benefits will he receive?
(Choose from the following options)
1. Payments for life
2. Yearly premium waiver and income
3. Monthly premium waiver and monthly income
4. Percentage of medical costs paid by the insurer
Ans>> Monthly premium waiver and monthly income
The Disability Income Benefit rider waives the policy premiums, just like the Waiver of
Premium rider. Unlike the Waiver of Premium rider, it also allows the insured to receive a
weekly or monthly income during the disability period.
3
, 5. 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?
(Choose from the following options)
1. The premiums will become tax deductible until the insured's 18th birthday.
2. Since it is the policyowner, and not the insured, who has become disabled, the life
insurance policy will not be affected.
3. The insured will have to pay premiums for 6 months. If at the end of this period the
father is still disabled, the insured will be refunded the premiums.
4. The insured's premiums will be waived until she is 21.
Ans>> d) The insured's premiums will be waived until she is 21.
If the payor (usually a parent or guardian) becomes disabled for at least 6 months or dies,
the insurer will waive the premiums until the minor reaches a certain age, such as 21.
6. Are insurance company underwriters allowed to discriminate?
4
TESTED AND PROVEN ANSWERS | LATEST UPDATE
2024/2025 100% (GRADE A+)
1. What is the maximum civil penalty for violating the Superintendent's cease and desist
order?
(Choose from the following options)
1. $1,000
2. $5,000
3. $10,000
4. $15,000
Ans>> 3. $10,000
2. Which option is being utilized when the insurer accumulates dividends at interest and
then uses the accumulated dividends, plus interest, and the policy cash value to pay the
policy up early?
(Choose from the following options)
1
,1. Paid-up additions
2. Dividend Accumulation option
3. Paid-up option
4. Accumulation at Interest
Ans>> 1. Paid-up additions
3. An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his
policy and exercise the extended term option for the policy's cash value, which is currently
$20,000. What would be the face amount of the new term policy?
(Choose from the following options)
1. $20,000
2. $25,000
3. $50,000
4. The face amount will be determined by the insurer.
Ans>> $50,000
2
,The face of the term policy would be the same as the face amount provided under the
whole life policy.
4. After a back injury, an insured is disabled for a year. His insurance policy carries a
Disability Income Benefit rider. Which of the following benefits will he receive?
(Choose from the following options)
1. Payments for life
2. Yearly premium waiver and income
3. Monthly premium waiver and monthly income
4. Percentage of medical costs paid by the insurer
Ans>> Monthly premium waiver and monthly income
The Disability Income Benefit rider waives the policy premiums, just like the Waiver of
Premium rider. Unlike the Waiver of Premium rider, it also allows the insured to receive a
weekly or monthly income during the disability period.
3
, 5. 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?
(Choose from the following options)
1. The premiums will become tax deductible until the insured's 18th birthday.
2. Since it is the policyowner, and not the insured, who has become disabled, the life
insurance policy will not be affected.
3. The insured will have to pay premiums for 6 months. If at the end of this period the
father is still disabled, the insured will be refunded the premiums.
4. The insured's premiums will be waived until she is 21.
Ans>> d) The insured's premiums will be waived until she is 21.
If the payor (usually a parent or guardian) becomes disabled for at least 6 months or dies,
the insurer will waive the premiums until the minor reaches a certain age, such as 21.
6. Are insurance company underwriters allowed to discriminate?
4
