FX INSURANCE EVALUATION EXAM 2025/2026 QUESTIONS
AND ANSWERS GUARANTEE A+
✔✔benefit period - ✔✔the length of time over which the insurance benefits will be paid
for each illness, disability or hospital stay
✔✔binder - ✔✔a temporary contract that puts an insurance policy into force before the
premium has been paid
✔✔blanket medical insurance - ✔✔a policy that provides benefits for all medical costs
✔✔broker - ✔✔an individual who represents an insured in the process of purchasing
and negotiating a contract of insurance
✔✔buy-sell agreement - ✔✔a legal contract that determines what will be done with a
business in the event that an owner dies or becomes disabled
✔✔capital amount - ✔✔a percentage of the principal amount of a policy paid to the
insured if he/she suffered the loss of an appendage
✔✔carriers - ✔✔organizations that process claims and pay benefits in an insurance
policy
✔✔cease and desist order - ✔✔a demand of a person to stop committing an action that
is in violation of a provision
✔✔certificate - ✔✔a statement that confirms that a policy gas been written and that
describes the coverage in general
✔✔claim - ✔✔a request for payment of the benefits provided by an insurance contract
✔✔coercion - ✔✔an unfair trade practice in which an insurer uses physical or mental
force to persuade an applicant to buy insurance
✔✔commingling - ✔✔a practice in which a person in a fiduciary capacity illegally mixes
his/her personal funds with funds he/she is holding in trust
✔✔commission - ✔✔the payment made by insurers to agents or brokers for the sale
and service of policies
✔✔concealment - ✔✔the withholding of known facts which can void a contract
✔✔consideration - ✔✔the blinding force in a contact that requires something of value to
be exchanged for the transfer of risk
, ✔✔COBRA of 1986 - ✔✔the law that provides for the continuation of group health care
benefits for the insured for up to 18 months if he/she terminates employment or is no
longer available
✔✔contributory - ✔✔a group insurance plan that requires the employees to pay part of
the premium
✔✔convertible - ✔✔a policy that may be exchanged for another type of policy by
contractual provision and without evidence of insurability
✔✔coordination of benefits - ✔✔a provision that helps determine the primary provider in
situations where an insured is covered by more than one policy
✔✔co-pay - ✔✔an arrangement in which an insured must pay a specified amount "up
front" and the provider pays the remainder of the cost
✔✔credit life insurance - ✔✔a special type of coverage written to pay off the balance of
a loan in the event of the death of the debtor
✔✔deductible - ✔✔the portion of the loss that is to be paid by the insured before any
claim benefits may be paid by the insurer
✔✔defamation - ✔✔an unfair trade practice in which one agent or insurer makes an
injurious statement about another with the intent of harming the person's or company's
reputation
✔✔disclosure - ✔✔an act of identifying the name of the producer, representative firm,
limited insurance representative, or temporary insurance producer on any policy
solicitation
✔✔domicile of insurer - ✔✔an insurance company that conducts business in the state of
incorporation
✔✔effective date - ✔✔the date when an insurance policy begins
✔✔eligibility period - ✔✔the period of time in which an employee may enroll in a group
health care plan without having to provide evidence of insurability
✔✔elimination period - ✔✔a waiting period that is imposed on the insured from the
onset of disability until benefit payments begin
✔✔endodontics - ✔✔an area of dentistry that deals with diagnosis, prevention and
treatment of the dental pulp within natural teeth at the root canal
AND ANSWERS GUARANTEE A+
✔✔benefit period - ✔✔the length of time over which the insurance benefits will be paid
for each illness, disability or hospital stay
✔✔binder - ✔✔a temporary contract that puts an insurance policy into force before the
premium has been paid
✔✔blanket medical insurance - ✔✔a policy that provides benefits for all medical costs
✔✔broker - ✔✔an individual who represents an insured in the process of purchasing
and negotiating a contract of insurance
✔✔buy-sell agreement - ✔✔a legal contract that determines what will be done with a
business in the event that an owner dies or becomes disabled
✔✔capital amount - ✔✔a percentage of the principal amount of a policy paid to the
insured if he/she suffered the loss of an appendage
✔✔carriers - ✔✔organizations that process claims and pay benefits in an insurance
policy
✔✔cease and desist order - ✔✔a demand of a person to stop committing an action that
is in violation of a provision
✔✔certificate - ✔✔a statement that confirms that a policy gas been written and that
describes the coverage in general
✔✔claim - ✔✔a request for payment of the benefits provided by an insurance contract
✔✔coercion - ✔✔an unfair trade practice in which an insurer uses physical or mental
force to persuade an applicant to buy insurance
✔✔commingling - ✔✔a practice in which a person in a fiduciary capacity illegally mixes
his/her personal funds with funds he/she is holding in trust
✔✔commission - ✔✔the payment made by insurers to agents or brokers for the sale
and service of policies
✔✔concealment - ✔✔the withholding of known facts which can void a contract
✔✔consideration - ✔✔the blinding force in a contact that requires something of value to
be exchanged for the transfer of risk
, ✔✔COBRA of 1986 - ✔✔the law that provides for the continuation of group health care
benefits for the insured for up to 18 months if he/she terminates employment or is no
longer available
✔✔contributory - ✔✔a group insurance plan that requires the employees to pay part of
the premium
✔✔convertible - ✔✔a policy that may be exchanged for another type of policy by
contractual provision and without evidence of insurability
✔✔coordination of benefits - ✔✔a provision that helps determine the primary provider in
situations where an insured is covered by more than one policy
✔✔co-pay - ✔✔an arrangement in which an insured must pay a specified amount "up
front" and the provider pays the remainder of the cost
✔✔credit life insurance - ✔✔a special type of coverage written to pay off the balance of
a loan in the event of the death of the debtor
✔✔deductible - ✔✔the portion of the loss that is to be paid by the insured before any
claim benefits may be paid by the insurer
✔✔defamation - ✔✔an unfair trade practice in which one agent or insurer makes an
injurious statement about another with the intent of harming the person's or company's
reputation
✔✔disclosure - ✔✔an act of identifying the name of the producer, representative firm,
limited insurance representative, or temporary insurance producer on any policy
solicitation
✔✔domicile of insurer - ✔✔an insurance company that conducts business in the state of
incorporation
✔✔effective date - ✔✔the date when an insurance policy begins
✔✔eligibility period - ✔✔the period of time in which an employee may enroll in a group
health care plan without having to provide evidence of insurability
✔✔elimination period - ✔✔a waiting period that is imposed on the insured from the
onset of disability until benefit payments begin
✔✔endodontics - ✔✔an area of dentistry that deals with diagnosis, prevention and
treatment of the dental pulp within natural teeth at the root canal
