Guarantee ExamFX 2023 Questions With Complete Solutions

A return of premium life policy is written as what type of term coverage? correct answer: Increasing What are the two types of Flexible Spending Accounts? correct answer: Health Care and Dependent Care Taxation of LTC insurance... correct answer: excessive benefits may be taxable Nonforfeiture values guarantee... correct answer: that the cash value will not be lost Which method of dealing with risk is applied when insurance is purchased? a. transfer b. sharing c. avoidance tion correct answer: a. transfer An equity indexed annuity will grow based upon a. performance in separate accounts b. current interest rates c. rate of interest d. performance of a recognized index correct answer: d. performance f a recognized index Which of the following would not be eligible for coverage under key person? a. owner of a shop b. pharamacist in drug store c. manager of small store d. executive officer correct answer: a. owner of a shop The Uniform Provision Law that prevents an insurance company from altering its agreement with a PO by referring to documents or other items not contained in a policy is a. legal action provision b. grace period provision c. reinstatement provision d. entire contract provision correct answer: d. entire contract provision When a whole life policy is surrendered for its nonforfeiture value, what is the automatic option? a. reduced paid-up b. extended term c. paid-up additions d. cash surreder value correct answer: b. extended term Decreasing term insurance is often used to a. cover a mortgage b. liquidate an estate c. build up for retirement d. pay estate taxes correct answer: a. cover a mortgage What specific kind of insurance is often written in conjuction with hospital expense policies and includes surgeon's fees? a. basic medical expense b. basic surgical expense c. personnel d. practicioner's correct answer: b. basic surgical expense Which risk classification is representative of the majority in certain age groups and have similar lifes