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EXAMFX LIFE AND HEATH ACTUAL EXAM NEWEST WITH COMPLETE 100 QUESTIONS AND CORRECT VERIFIED ANSWERS (WITH RATIONALES) |2025 EXAMFX LIFE AND HEALTH (BRAND NEW)$21.89
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EXAMFX LIFE AND HEATH ACTUAL EXAM NEWEST WITH COMPLETE 100 QUESTIONS AND CORRECT VERIFIED ANSWERS (WITH RATIONALES) |2025 EXAMFX LIFE AND HEALTH (BRAND NEW)
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2024-2025 LIFE AND HEATH
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2024-2025 LIFE AND HEATH
EXAMFX LIFE AND HEATH ACTUAL EXAM NEWEST WITH COMPLETE 100 QUESTIONS AND CORRECT VERIFIED ANSWERS (WITH RATIONALES) |2025 EXAMFX LIFE AND HEALTH (BRAND NEW)
An insured owns a $50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term option for t...
2024-2025 EXAMFX LIFE AND HEATH ACTUAL
EXAM NEWEST WITH COMPLETE 100 QUESTIONS
AND CORRECT VERIFIED ANSWERS (WITH
RATIONALES) |2025 EXAMFX LIFE AND HEALTH
(BRAND NEW)
1. An insured owns a $50,000 whole life policy. At age 47, the insured decides to
cancel his policy and exercise the extended term option for the policy's cash
value, which is currently $20,000. What would be the face amount of the new
term policy?
(Choose from the following options)
1. $20,000
2. $25,000
3. $50,000
4. The face amount will be determined by the insurer. - ANSWER-$50,000
The face of the term policy would be the same as the face amount provided under
the whole life policy.
2. After a back injury, an insured is disabled for a year. His insurance policy
carries a Disability Income Benefit rider. Which of the following benefits will he
receive?
(Choose from the following options)
1. Payments for life
2. Yearly premium waiver and income
3. Monthly premium waiver and monthly income
4. Percentage of medical costs paid by the insurer - ANSWER-Monthly premium
waiver and monthly income
,The Disability Income Benefit rider waives the policy premiums, just like the
Waiver of Premium rider. Unlike the Waiver of Premium rider, it also allows the
insured to receive a weekly or monthly income during the disability period.
3. What is the maximum civil penalty for violating the Superintendent's cease and
desist order?
(Choose from the following options)
1. $1,000
2. $5,000
3. $10,000
4. $15,000 - ANSWER-3. $10,000
4. Which option is being utilized when the insurer accumulates dividends at
interest and then uses the accumulated dividends, plus interest, and the policy
cash value to pay the policy up early?
(Choose from the following options)
1. Paid-up additions
2. Dividend Accumulation option
3. Paid-up option
4. Accumulation at Interest - ANSWER-1. Paid-up additions
5. A father owns a life insurance policy on his 15-year-old daughter. The policy
contains the optional Payor Benefit rider. If the father becomes disabled, what
will happen to the life insurance premiums?
,(Choose from the following options)
1. The premiums will become tax deductible until the insured's 18th birthday.
2. Since it is the policyowner, and not the insured, who has become disabled, the
life insurance policy will not be affected.
3. The insured will have to pay premiums for 6 months. If at the end of this period
the father is still disabled, the insured will be refunded the premiums.
4. The insured's premiums will be waived until she is 21. - ANSWER-d) The
insured's premiums will be waived until she is 21.
If the payor (usually a parent or guardian) becomes disabled for at least 6 months
or dies, the insurer will waive the premiums until the minor reaches a certain age,
such as 21.
6. Are insurance company underwriters allowed to discriminate?
(Choose from the following options)
1. Yes, but not unfairly
2. No, higher risks pay higher premium
3. No, discrimination is an unfair practice
4. Yes, but only for gender - ANSWER-1. Yes, but not unfairly
7. Which of the following is an example of a producer's fiduciary duty?
(Choose from the following options)
1. An obligation to state every known fact about the policy the producer is selling.
2. A duty to base all transactions upon the principle of Utmost Good Faith.
3. The obligation to tell the truth to the best of one's knowledge
, 4. The trust that a client places in the producer in regard to handling premiums. -
ANSWER-d) The trust that a client places in the producer in regard to handling
premiums.
An agent acts in a fiduciary capacity, based upon trust and confidence, when
handling the financial affairs of their customers, including the handling of
premiums.
8. Which of the following provisions in annuity contracts allow the owner to
surrender the annuity if interest rates drop to a specified level?
(Choose from the following options)
1. Annuitization
2. Bail-out
3. Surrender
4. Nonforfeiture - ANSWER-b) Bail-out
Some annuity contracts contain a bail-out provision. This provision allows the
owner to surrender the annuity without charge if interest rates drop a specified
amount within a certain timeframe.
9. An insurance policy that only requires a payment of premium at its inception,
provides insurance protection for the life of the insured, and matures at the
insured's age 100 is called
(Choose from the following options)
1. Modified Endowment Contract (MEC).
2. Level term life.
3. Graded premium whole life.
4. Single premium whole life. - ANSWER-d) Single premium whole life.
Single premium whole life requires the entire premium to be paid in one lump
sum at the policy's inception.
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