FX INSURANCE EXAM SCRIPT 2025/2026 QUESTIONS AND
ANSWERS GUARANTEE A+
✔✔Aleatory - ✔✔not equal value - small premium for a large amount of coverage
✔✔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.
✔✔First dollar coverage - ✔✔A healthcare insurance policy that has no deductible and
covers the first dollar of an insured's expenses
✔✔Dividend Options - ✔✔Reduction of premium
Paid up additions
Accumulated at interest
✔✔Elimination Period - ✔✔time between the disabling event and the beginning of
payments in your disability coverage
✔✔Straight life and pure life - ✔✔If annuitant dies before principle amount is paid out
beneficiary receives nothing
✔✔___ can make a fully deductible contribution to a traditional IRA - ✔✔Someone not
covered by an employer sponsored plan who has earned income.
✔✔APS (Attending Physician's Statement) - ✔✔Insureds medical history, diagnosis and
treatments
✔✔Notice of Claim - ✔✔to provide the insurer with reasonable notice in the event of a
loss.
✔✔Risk of a fixed annuity - ✔✔Insurance company bears risk
✔✔Extended Term Nonforfeiture Option - ✔✔the insurer uses the policy cash value to
convert to the same face amount as the whole life
✔✔The limits of a health reimbursement account are set by - ✔✔*The employer*
✔✔purpose of coinsurance - ✔✔to reduce premiums and prevent overutilization of plan
benefits
✔✔Interest Only Option - ✔✔This is a death settlement option in which the insurance
company holds the death benefit for a period and pays only the interest that's earned to
the named beneficiary. A minimum rate of interest is guaranteed, and the interest must
be paid at least annually.
, ✔✔Riders - ✔✔Multiple indemnity premium increases
Payor benefit premium increases
Waiver of premium increases
Impairment premium decreases
✔✔Medicare Part B - ✔✔Outpatient care. Extends Medicare to supplemental
treatments, and physicians financed by monthly premiums and tax revenues
✔✔nonqualified retirement plan - ✔✔Split dollar plan
✔✔Timeframe for filing relevant Suspicious Activity Reports - ✔✔Within 30 days of
INITIAL DISCOVERY
✔✔usual, customary, and reasonable (UCR) - ✔✔setting fees by comparing usual fees,
customary fees, and reasonable fees
✔✔IRA purchased by small employer - ✔✔Simplified employee pension plan
✔✔Unilateral - ✔✔One party made a legally enforceable promise
✔✔Guaranteed Insurability Rider - ✔✔Optional rider enables the policyowner to
purchase additional amounts of coverage at predetermined times without proof of
insurability.
✔✔Employees group medical benefits - ✔✔Are exempt from taxation as income
✔✔COBRA - ✔✔law to provide terminated employees or those who lose insurance
coverage because of reduced work to be able to buy group insurance for themselves
and their families for a limited amount of time.
✔✔What determines if disability insurance benefits are taxed? - ✔✔Weather the
premiums were tax deductible
✔✔Flexible Spending Account (FSA) - ✔✔A salary reduction cafeteria plan that uses
employee funds to provide various types of health care benefits.
Ex: Heath care and dependent care
✔✔HSA (Health Savings Account) - ✔✔Health insurance that includes a savings
account that allows you to pay for healthcare on tax-free basis
65 no penalty
✔✔HSA (Health Savings Account) whose eligible - ✔✔A person under a high deductible
health plan
ANSWERS GUARANTEE A+
✔✔Aleatory - ✔✔not equal value - small premium for a large amount of coverage
✔✔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.
✔✔First dollar coverage - ✔✔A healthcare insurance policy that has no deductible and
covers the first dollar of an insured's expenses
✔✔Dividend Options - ✔✔Reduction of premium
Paid up additions
Accumulated at interest
✔✔Elimination Period - ✔✔time between the disabling event and the beginning of
payments in your disability coverage
✔✔Straight life and pure life - ✔✔If annuitant dies before principle amount is paid out
beneficiary receives nothing
✔✔___ can make a fully deductible contribution to a traditional IRA - ✔✔Someone not
covered by an employer sponsored plan who has earned income.
✔✔APS (Attending Physician's Statement) - ✔✔Insureds medical history, diagnosis and
treatments
✔✔Notice of Claim - ✔✔to provide the insurer with reasonable notice in the event of a
loss.
✔✔Risk of a fixed annuity - ✔✔Insurance company bears risk
✔✔Extended Term Nonforfeiture Option - ✔✔the insurer uses the policy cash value to
convert to the same face amount as the whole life
✔✔The limits of a health reimbursement account are set by - ✔✔*The employer*
✔✔purpose of coinsurance - ✔✔to reduce premiums and prevent overutilization of plan
benefits
✔✔Interest Only Option - ✔✔This is a death settlement option in which the insurance
company holds the death benefit for a period and pays only the interest that's earned to
the named beneficiary. A minimum rate of interest is guaranteed, and the interest must
be paid at least annually.
, ✔✔Riders - ✔✔Multiple indemnity premium increases
Payor benefit premium increases
Waiver of premium increases
Impairment premium decreases
✔✔Medicare Part B - ✔✔Outpatient care. Extends Medicare to supplemental
treatments, and physicians financed by monthly premiums and tax revenues
✔✔nonqualified retirement plan - ✔✔Split dollar plan
✔✔Timeframe for filing relevant Suspicious Activity Reports - ✔✔Within 30 days of
INITIAL DISCOVERY
✔✔usual, customary, and reasonable (UCR) - ✔✔setting fees by comparing usual fees,
customary fees, and reasonable fees
✔✔IRA purchased by small employer - ✔✔Simplified employee pension plan
✔✔Unilateral - ✔✔One party made a legally enforceable promise
✔✔Guaranteed Insurability Rider - ✔✔Optional rider enables the policyowner to
purchase additional amounts of coverage at predetermined times without proof of
insurability.
✔✔Employees group medical benefits - ✔✔Are exempt from taxation as income
✔✔COBRA - ✔✔law to provide terminated employees or those who lose insurance
coverage because of reduced work to be able to buy group insurance for themselves
and their families for a limited amount of time.
✔✔What determines if disability insurance benefits are taxed? - ✔✔Weather the
premiums were tax deductible
✔✔Flexible Spending Account (FSA) - ✔✔A salary reduction cafeteria plan that uses
employee funds to provide various types of health care benefits.
Ex: Heath care and dependent care
✔✔HSA (Health Savings Account) - ✔✔Health insurance that includes a savings
account that allows you to pay for healthcare on tax-free basis
65 no penalty
✔✔HSA (Health Savings Account) whose eligible - ✔✔A person under a high deductible
health plan
