Exam FX Questions

Copy of the original application

According to the entire contract provision, what document must be made part of the insurance policy?

Premiums are tax deductible as a business expense

All of the following are true regarding key person disability income insurance EXCEPT

Suspension of license

An agent misrepresents the details of an insured's new insurance contract that will be replacing the current contract. Which would happen?

Any children born to them after the inception of the contract.

Bob purchased a policy to provide coverage on himself, his wife Linda, and their two children, John and Kristen. All of them would need to prove insurability EXCEPT

180 days

How long does a temporary producers license last for the surviving spouse of a deceased producer?

A full death benefit

If the owner of a whole life policy who is also the insured dies at age 80, and there are no outstanding loans on the policy, what is paid to the beneficiary?

During which illness-related disabilities are excluded from coverage

In a disability policy, the probationary period refers to the time

Spendthrift clause

The clause that protects the proceeds of a life insurance policy from creditors after the death of the insured is known as the

Need

The primary eligibility requirement for Medicaid benefits is based upon

The spouse named as beneficiary has obtained or consented to a final decree or judgement from an anniument, divorce, or separation

The termination of marital property rights may be reserved for all of the following reasons EXCEPT

Funds exceeding the premium paid are taxable as ordinary income

Which is TRUE about the cash surrender nonforfeiture option?

It is divided into geographic territories

Which is true regarding HMO coverage?

The program is divided into four parts A-D

Which of the following is correct about Medicare?

FINRA

An agent selling variable annuities must be registered with

The policy may be voided if it can be proven that the applicant was not capable of making a buying decision at the time of application

An agent tries to sell insurance over the phone to an applicant who appears to be confused, but is eventually able to give enough information for completion. After the policy was issued, the agent talked to the insured's family, and they explained that the insured was recovering form a surgery under the influence of medication at the time of application. Which of the following is true?

Guaranteed insurability option

An individual is purchasing a permanant life insurance policy with the face value of 25,000. While this is all the insurance that he can afford at this time to be sure that additional coverage will be available in the future. Which of the following options should be included in the policy?

Fraud

An insurance company assures its new policyholder that their premium costs will not increase for a period of at least strain, they plan to raise premium costs for all insureds by 10% over the next two years, What term best describes the situation

50,000

An insured owns a 50,000 whole life policy. At age 47, the insured decides to cancel his policy and exercise the extended term options is currently 20,000. what would be the face amount of the new term policy?

This practice is illegal

An insurer offers a policy very similar to Medicare although it differs slightly. An agent tells an applicant that the policy is Medicare anyway. Which of the following is true?

The Insurance Department

In order to become licensed to become a viatical settlement provider, an application must be made with

5,000

What is the civil penalty for the first violation of the Pennsylvania Insurance Fraud Prevention Act?

3 days

Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing?

A third degree misdemeanor and a 1,000 fine

An individual was just caught acting as an exclusive general agent - even though he is not properly licensed. Assume the maximum penalty he faces?

The beneficiary will only receive payments of the interest earned on the death benefit

Upon death of the insured, the primary beneficiary discovers that the insured chose the interest only settlement option. What does this mean?

The insurer is considered to be notified since the notification to agent equals notification to the insurer

When Linda suffered a broken hip, she notified her agent, in writing, within 12 days of the loss. However, her agent did not notify the insurance company after the loss. Which of the following statements correctly explains how this claim would be handled?

Equal to the original policy for as long a period of time that the cash values will purchase

When a life insurance policy is cancelled and the insured has selected the extended term nonforfeiture option, the cash value will be that has a face amount

Commissioner

Which of the following authorities is authorized to issue a temporary insurance producer's license?

Department of Insurance

Which of the following authorities monitors the financial strength of insurers?

The benefit can be up to 50% of one's yearly income

Which of the following is NOT a characteristic of a group long-term disability plan?

The insurer may terminate the contract only at renewal for certain conditions

Which of the following is NOT a feature of a noncancellable policy

The insurer may terminate the contract only at renewal for certain conditions

Which of the following is NOT a feature of a noncancellable policy?

Presuming the applicant is eligible for Medicaid, based on the nature of the policy

Which of the following is NOT among the goals of a Medicare supplement application?

The Medicare Part A deductible

Which of the following is NOT covered under Plan A in Medigap insurance?

They earn lower interest rates than fixed annuities

Which of the following is NOT true regarding Equity Indexed Annuities?

Benefit payment amounts are not guaranteed

Which of the following is a feature of a variable annuity?

They are available for an additional premium

Which of the following is true regarding optional benefits with long-term care policies?

The cost of coverage is based on the ratio of men and women in the group

Which of the following statements about group life is correct?

The employer is the policyholder

Which of the following statements concerning group health insurance is CORRECT?

Warranty

Which of the following statements is guaranteed to be true, and if untrue, may breach an insurance contract?

Calls based from outside the United States

Which of the following would NOT be considered an exception to the National Do Not Call List?

Surgery to repair a wrist damaged by tendonitis

Which of the following would an accident-only policy NOT cover?

Period of Time

Which renewability provision are you most likely to see on a travel accident policy?

Optionally renewable

Which renewal option does NOT guarantee renewal and allows the insurance company to refuse renewal of a policy?

Replacement Rule

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?

Endodontics

Which type of dental treatment involves the dental pulp within the teeth?

The lending institution

Who is the beneficiary in a credit health policy?

Within 30 days

How soon after the due date should the insurer pay the agent appointment fees?

Conversion

If an employee terminates her employment, which of the following provisions would allow her to continue health coverage before 31 days?

If paid by the individual, the premiums are tax deductible

Which of the following is INCORRECT concerning taxation of disability income benefits

Critical illness

A health insurance policy that pays a lump sum if the insured suffers a heart attack or stroke is known as

Annually Renewable Term

The death protection component of Universal Life Insurance is always

An individual who was previously covered by group health insurance for 6 months is eligible

Under HIPAA, which of the following is INCORRECT regarding eligibility requirements for conversion to an individual policy?

Are made by the business and are not tax-deductible

Under a Key Person disability income policy, premium payments

The insured

Under a health insurance policy, benefits other than death benefits that have not otherwise been assigned, will be paid to

Monthly

Under an individual policy, the MINIMUM schedule of time in which claim payments must be made to an insured is

The full death benefit

A life insurance policy does not have a war clause. If the insured is killed during a time of war, what will the beneficiary receive?

The policy will not lapse for 31 days if the premium is not paid when due

A policy with a 31-day grace period implies

Allow the trustee to transfer the assets of the trust to their personal account

Naming a trust as the beneficiary of a life insurance policy can accomplish all of the following for the policyowner EXCEPT

Entire Contract

The insurance policy, together with the policy application and any added riders form what is known as the