EXAMFX EXAM LATEST 2024-2025 WITH ACTUAL QUESTIONS AND
CORRECT VERIFIED ANSWERS ALREADY GRADED A+ 100%
GUARANTEED PASS!
key person insurance can provide protection for all of the following economic
losses to a business EXCEPT
a. Provide deferred compensation retirement benefit if the insured key person
survives to retirement
b. Fund the expenses of finding a suitable replacement following the death of
an employee
c. Fund the cost of training a current employee to perform the duties of a
deceased employee.
d. Pay the death benefit to the estate of the insured. - ANSWER-Pay the death
benefit to the estate of the insured
What is the purpose of a disability buy-sell agreement? - ANSWER-To allow the
business buyout in case of the owners disability
Which of the following statements is INCORRECT concerning Modified
Endowment Contracts (MECS)?
A) A primary purpose of the regulations governing MEC's was to reduce
incentives for the use of life insurance as a short-term investment vehicle.
,B) A distribution from an MEC may be subject to a 10% penalty if withdrawn
prior to 59.5
C) An MEC must always pass the 7-pay test
D) A life insurance policy failing the 7-pay test is classified as an MEC -
ANSWER-C
An MEC must always pass the 7-Pay test
An annuity owner receives the same guaranteed payment every month. What
type of annuity is it?
Single
Guaranteed
Immediate
Fixed - ANSWER-Fixed
Bill is approaching retirement age and is concerned about having proper
coverage should he have to be placed in a LTC facility. Bill's agent told him that
LTC policies would provide coverage at all of the following levels EXCEPT
In health insurance, what is coinsurance? - ANSWER-A percentage of the cost
of service that the insured and the insurer share
, The policyowner has an option to pledge the life insurance policy as collateral
for a bank loan. This is called - ANSWER-A collateral Assignment
on an accidental death and dismemberment (AD&D) policy, the death benefit
payable is known as the - ANSWER-Principal sum
what happens to the copy of the application for health insurance once the
policy is issued - ANSWER-It becomes part of the entire contract
Which of the following is NOT provided by an HMO?
Inpatient hospital care outside the service area
unlimited coverage for treatment for drug rehabilitation
treatment of mental disorders
emergency care - ANSWER-Unlimited coverage for treatment for drug
rehabilitation
What is the only difference between blanket insurance and group health
insurance? - ANSWER-The insured members are not named
There is a 10% penalty on the taxable portion of a deferred annuity when it is
surrendered prior to what age? - ANSWER-59 1/2
An employee has a flexible spending account (FSA) with a $5,000 annual
benefit. This year the employee used $3,000. What would be the amount of
the benefit avaiblable to the employee next year? - ANSWER-$5,000
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