ExamFXLifeInsuranceTestQuestions&Answers.
Ray has an individual major medical policy that requires a coinsurance payment. Ray
rarely visits his physician and would prefer to pay the lowest premium possible. Which
coinsurance arranngement would be best for Ray? - Correct Answer 50/50
Which two t...
Exam FX Life Insurance Test Questions & Answers.
Ray has an individual major medical policy that requires a coinsurance payment. Ray
rarely visits his physician and would prefer to pay the lowest premium possible. Which
coinsurance arranngement would be best for Ray? - Correct Answer 50/50
Which two terms are associated directly with the way an annuity is funded? - Correct
Answer Single payment or periodic payments
All of the following are examples of thirs party ownership of life insurance - Correct Answer
An insured borrows money from the bank and makes a collateal assignment of a part of the
death benefit to secure the loan
An insured pays $1,200 annually for her life insurance premium. The insured applies this
year's $300 worth of accumulated dividends to the next year's premiums, thus reducing it
to $900. What option does this describe? - Correct Answer Reduction of premium
A small company offers group insurance to its employees, but recently has decided to
terminate the health insurance contract, leaving the workers without insurance. What can
the employees do regarding their insurance? - Correct Answer Convert to an individual
policy
What phase begins after a new policy is delivered? - Correct Answer Free-Look period
An insured want to name her husband as the beneficiary of her health policy. She also
wishes to retain all of the rights of ownership. The insured should have herhusband named
as what type of beneficiary? - Correct Answer Revocable
In order for a debtor group to qualify for group life insurance, what should be the minimum
number of participants joining the plan every year - Correct Answer 100
Which rule would apply if an agent knows an applicant is going to cash in an old policy and
use the funds to purchase new insurance? - Correct Answer Replacement rule
Which term secribes the benefits of a life insurance policy that the policyowner does not
automatically relinquish even if the policy lapses? - Correct Answer Nonforfeiture values
Agents who persaude insureds to cancel a policy in favor of another one when it might not
be in the insured's best interest are guilty of - Correct Answer Twisting
If an employee is accepted into a group insurance plan, which status will the employee
have? - Correct Answer Certificate holder
Which document helps ensure that full and fair disclosure is provided to the recipient of a
policy? - Correct Answer Outline of Coverage
, A licensed agent must complete how many hours of continuing education specific to ethics
and regulatory updates? - Correct Answer 5
An individual purchased a Medicare supplement policy in March and decied to replace it 2
months later. His history of coronary artery disease is considered a pre-existing condition.
Which of the following is true? - Correct Answer The pre-existing condition waiting period
fulfilled in the old policy will be transferred to the ne wpolicy, the new one picking up where
the old on left off
Which of the following may NOT be included in an insurance company's advertisement? -
Correct Answer That its policies are covered by a state Guaranty Association
Who does the secondary addressee provision protect? - Correct Answer The insured over
the age of 64
Which of the following is an agreement between an insured and an insurer, where the
insurer agrees to indemnify the insured for specific losses in exchange for a premium? -
Correct Answer The insurance contract
In a group policy, who is issued a certificate of insurance? - Correct Answer The individual
insured
Can a group that is formed for the sole purpose of obtaining group insurance qualify for
group coverage? - Correct Answer No, the group must be formed for a purpose other than
obtaining group insurance
An employee will be taxed on the cost of group life insurnace paid by the employer if the
amount of coverage exceeds - Correct Answer $50,000
In this state, long-term care benefits may be triggered by inability to perform how many
activities of daily living? - Correct Answer 3
Under what conditions will proof of insurability NOT be required of an employee wanting to
enroll in a group insurance plan? - Correct Answer If the employee enrolls within a certain
time period
Which of the following dates must be contained in a policy summary? - Correct Answer The
date the summary was prepared
A participating insurance policy may do which of the following? - Correct Answer Pay
dividends to the policyowner
An insured has health insurance that covers them at work and at home. This policy was
written on what basis? - Correct Answer Occupational
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