FX LIFE INSURANCE ACTUAL FINAL EXAMS
QUESTIONS AND ANSWERS SURE A+
✔✔Mutual Companies - ✔✔Insurance organizations that have no capital stock, but are
owned by the policyholders.
✔✔Nonadmitted (Nonauthorized) - ✔✔An insurance company that has not applied for,
or has applied and been denied a Certificate of Authority and may not transact
insurance in a particular state.
✔✔Noncancellable - ✔✔An insurance contract that the insured has a right to continue in
force by payment of premiums that remain the same for a substantial period of time.
✔✔Nonforfeiture Values - ✔✔Those guaranteed values in a life insurance policy that
cannot be taken from the insured, even if he or she ceases to pay premiums.
✔✔Nonmedical - ✔✔A life or health insurance policy that is underwritten based on the
insured's statement of health rather than a medical examination.
✔✔Nonparticipating Policies (Non-par) - ✔✔Insurance that does not pay dividends.
✔✔Nonqualified Plan - ✔✔A type of benefit plan that may discriminate, is not required
to be filed with the IRS, and does not provide a current tax deduction for contributions.
, ✔✔Nonrenewal - ✔✔A termination of a policy by an insurer on the anniversary or
renewal date.
✔✔Nonresident Agent - ✔✔An agent licensed in a state in which he or she is not a
resident.
✔✔Option - ✔✔A choice of ways of receiving policy dividends, nonforfeiture values,
death benefits, or cash values.
✔✔Overinsurance - ✔✔An excessive amount of insurance that would result in
overpayment to the insured in the event of a loss.
✔✔Paid-Up Insurance - ✔✔A policy on which all premiums have been paid but which
has not matured due either to death or endowment.
✔✔Participating Policies (Par) - ✔✔Insurance that pays dividends to policyholders.
✔✔Payor Benefit - ✔✔A rider found in juvenile policies which waives the premiums if
the person paying them (often the parent) is disabled or dies while the child is still a
minor.
✔✔Peril - ✔✔The cause of a possible loss.
✔✔Permanent Life Insurance - ✔✔A general term used to refer to various forms of
whole life insurance policies that remain in effect to age 100 so long as the premium is
paid.
✔✔Persistency - ✔✔The tendency or likelihood of insurance policies not lapsing or
being replaced with insurance from another insurer.
✔✔Personal Contact - ✔✔An agreement between an insurance company and an
individual that states that insurance policies cover the individual's insurable interest.
✔✔Physical Exam and Autopsy - ✔✔A provision that allows an insurer, at its own
expense, to have an insured physically examined when a claim is pending or to have an
autopsy performed where not prohibited by law.
✔✔Policy Loan - ✔✔A nonforfeiture value in which an insurer loans a part or all of the
cash value of the policy assigned as security for the loan to the policyowner.
✔✔Policyholder - ✔✔The person who has possession of the policy, usually the insured.
QUESTIONS AND ANSWERS SURE A+
✔✔Mutual Companies - ✔✔Insurance organizations that have no capital stock, but are
owned by the policyholders.
✔✔Nonadmitted (Nonauthorized) - ✔✔An insurance company that has not applied for,
or has applied and been denied a Certificate of Authority and may not transact
insurance in a particular state.
✔✔Noncancellable - ✔✔An insurance contract that the insured has a right to continue in
force by payment of premiums that remain the same for a substantial period of time.
✔✔Nonforfeiture Values - ✔✔Those guaranteed values in a life insurance policy that
cannot be taken from the insured, even if he or she ceases to pay premiums.
✔✔Nonmedical - ✔✔A life or health insurance policy that is underwritten based on the
insured's statement of health rather than a medical examination.
✔✔Nonparticipating Policies (Non-par) - ✔✔Insurance that does not pay dividends.
✔✔Nonqualified Plan - ✔✔A type of benefit plan that may discriminate, is not required
to be filed with the IRS, and does not provide a current tax deduction for contributions.
, ✔✔Nonrenewal - ✔✔A termination of a policy by an insurer on the anniversary or
renewal date.
✔✔Nonresident Agent - ✔✔An agent licensed in a state in which he or she is not a
resident.
✔✔Option - ✔✔A choice of ways of receiving policy dividends, nonforfeiture values,
death benefits, or cash values.
✔✔Overinsurance - ✔✔An excessive amount of insurance that would result in
overpayment to the insured in the event of a loss.
✔✔Paid-Up Insurance - ✔✔A policy on which all premiums have been paid but which
has not matured due either to death or endowment.
✔✔Participating Policies (Par) - ✔✔Insurance that pays dividends to policyholders.
✔✔Payor Benefit - ✔✔A rider found in juvenile policies which waives the premiums if
the person paying them (often the parent) is disabled or dies while the child is still a
minor.
✔✔Peril - ✔✔The cause of a possible loss.
✔✔Permanent Life Insurance - ✔✔A general term used to refer to various forms of
whole life insurance policies that remain in effect to age 100 so long as the premium is
paid.
✔✔Persistency - ✔✔The tendency or likelihood of insurance policies not lapsing or
being replaced with insurance from another insurer.
✔✔Personal Contact - ✔✔An agreement between an insurance company and an
individual that states that insurance policies cover the individual's insurable interest.
✔✔Physical Exam and Autopsy - ✔✔A provision that allows an insurer, at its own
expense, to have an insured physically examined when a claim is pending or to have an
autopsy performed where not prohibited by law.
✔✔Policy Loan - ✔✔A nonforfeiture value in which an insurer loans a part or all of the
cash value of the policy assigned as security for the loan to the policyowner.
✔✔Policyholder - ✔✔The person who has possession of the policy, usually the insured.
