FX INSURANCE EXAMINATION TEST 2025/2026
QUESTIONS AND ANSWERS GUARANTEE A+
✔✔Which Universal Life Policy has a gradually increasing cash value and a level death
benefit?
A. Option A
B. Option B
C. Juvenile Life
D. Term Insurance - ✔✔A
✔✔All of the following are true about Variable Life Products EXCEPT
A. The premiums are invested in the insurer's general account
B. The minimum Death Benefit is guaranteed
C. The cash value is not guaranteed
D. Policyowners bear the investment risk - ✔✔A
✔✔A domestic insurer issuing variable contracts must establish one or more
A. Seperate accounts
B. Liablility accounts
C. Annuity accounts
D. General accounts - ✔✔A
✔✔If an annuitant dies before annuitization occurs, what will the beneficiary receive?
A. Amount paid into the plan
B. Cash Value of the plan
C. Either the amount paid into the plan or the cash value of the plan, whichever is
greater.
D. Either the amount paid into the plan or the cash value of the plan, whichever is the
lesser amount. - ✔✔C
✔✔Equity Indexed Annuities
A. are security instruments
B. Invest conservatively
C. Seek Higher Returns
D. Are more risky than variable annuities - ✔✔C
✔✔Which of the following would be deducted from a death benefit paid to a beneficiary,
if a partial accelerated death benefit had been paid while the insured was still alive?
A. 10% federal death benefit income tax
B. Amount paid with the accelerated benefit, plus the earnings lost by the insurance
company in interest income from the accelerated benefit.
C. There are no deductions from death benefits
D. Penalty imposed for early withdrawal of the death benefit, plus the amount of
earnings lost by the insurance company in interest income - ✔✔B
, ✔✔All of the following statements regarding dividends are true EXCEPT
A. Dividend amounts are guaranteed in the policy
B. Lower Insurance Company costs generate higher dividends.
C. They stem from favorable underwriting experience
D. Favorable investment results generate higher dividends - ✔✔A
✔✔Which of these statements is true regarding the accidental death rider?
A. It is only known as a triple indemnity rider
B. The rider is only available to insureds over the age of 65
C. It is only available in group insurance
D. It will pay double or triple the face amount - ✔✔D
✔✔What is the purpose of a fixed-period settlement option?
A. to settle the insurance company's liability
B. To provide a guaranteed income for life
C. To provide a guaranteed amount of money each month
D. To provide a guaranteed income for a certain amount of time - ✔✔D
✔✔If a settlement option is not chosen by the beneficiary or policyowner, which option
will be used?
A. Fixed Period
B. Fixed Amount
C. Lump Sum
D. Life Income - ✔✔C
✔✔Which rider, when attached to a permanent life insurance policy, provides an
amount of insurance on every family member?
A. Spouse RIder
B. Children's Rider
C. Additional Insured Rider
D. Family Term Rider - ✔✔D
✔✔An individual is purchasing a permanent life insurance policy with a face value of
$25,000. While this is all the insurance that he can afford at this time, he wants to be
sure that additional coverage will be available in the future. Which of the following
options should be included in the policy?
A. Guaranteed insurability option
B. Dividend options
C. Guaranteed renewable option
D. Nonforfeiture options - ✔✔A
QUESTIONS AND ANSWERS GUARANTEE A+
✔✔Which Universal Life Policy has a gradually increasing cash value and a level death
benefit?
A. Option A
B. Option B
C. Juvenile Life
D. Term Insurance - ✔✔A
✔✔All of the following are true about Variable Life Products EXCEPT
A. The premiums are invested in the insurer's general account
B. The minimum Death Benefit is guaranteed
C. The cash value is not guaranteed
D. Policyowners bear the investment risk - ✔✔A
✔✔A domestic insurer issuing variable contracts must establish one or more
A. Seperate accounts
B. Liablility accounts
C. Annuity accounts
D. General accounts - ✔✔A
✔✔If an annuitant dies before annuitization occurs, what will the beneficiary receive?
A. Amount paid into the plan
B. Cash Value of the plan
C. Either the amount paid into the plan or the cash value of the plan, whichever is
greater.
D. Either the amount paid into the plan or the cash value of the plan, whichever is the
lesser amount. - ✔✔C
✔✔Equity Indexed Annuities
A. are security instruments
B. Invest conservatively
C. Seek Higher Returns
D. Are more risky than variable annuities - ✔✔C
✔✔Which of the following would be deducted from a death benefit paid to a beneficiary,
if a partial accelerated death benefit had been paid while the insured was still alive?
A. 10% federal death benefit income tax
B. Amount paid with the accelerated benefit, plus the earnings lost by the insurance
company in interest income from the accelerated benefit.
C. There are no deductions from death benefits
D. Penalty imposed for early withdrawal of the death benefit, plus the amount of
earnings lost by the insurance company in interest income - ✔✔B
, ✔✔All of the following statements regarding dividends are true EXCEPT
A. Dividend amounts are guaranteed in the policy
B. Lower Insurance Company costs generate higher dividends.
C. They stem from favorable underwriting experience
D. Favorable investment results generate higher dividends - ✔✔A
✔✔Which of these statements is true regarding the accidental death rider?
A. It is only known as a triple indemnity rider
B. The rider is only available to insureds over the age of 65
C. It is only available in group insurance
D. It will pay double or triple the face amount - ✔✔D
✔✔What is the purpose of a fixed-period settlement option?
A. to settle the insurance company's liability
B. To provide a guaranteed income for life
C. To provide a guaranteed amount of money each month
D. To provide a guaranteed income for a certain amount of time - ✔✔D
✔✔If a settlement option is not chosen by the beneficiary or policyowner, which option
will be used?
A. Fixed Period
B. Fixed Amount
C. Lump Sum
D. Life Income - ✔✔C
✔✔Which rider, when attached to a permanent life insurance policy, provides an
amount of insurance on every family member?
A. Spouse RIder
B. Children's Rider
C. Additional Insured Rider
D. Family Term Rider - ✔✔D
✔✔An individual is purchasing a permanent life insurance policy with a face value of
$25,000. While this is all the insurance that he can afford at this time, he wants to be
sure that additional coverage will be available in the future. Which of the following
options should be included in the policy?
A. Guaranteed insurability option
B. Dividend options
C. Guaranteed renewable option
D. Nonforfeiture options - ✔✔A
