OR Life and Health Insurance: Simulate
Your Exam from Exam FX 2026/2027
Updated.
If the Director requests information regarding a claim, within how many days must the
insurer provide a response?
a) 3 days
b) 10 days
c) 21 days
d) 31 days
Answer: c) 21 days.
~ Upon an inquiry about a claim from the Director, the insurer must furnish an adequate
response within 21 days.
Issue age policy premiums increase in response to which of the following factors?
a) Increased benefits
b) Increased deductible
c) Inflation
d) The insured's age
Answer: a) Increased benefits
~ The premiums of issue age policies can only increase in response to an increase in
benefits.
In forming an insurance contract, when does acceptance usually occur?
a) When an insured submits an application.
b) When an insurer's underwriter approves coverage.
c) When an insurer delivers the policy.
d) When an insurer receives an application.
Answer: b) When an insurer's underwriter approves coverage.
~ In insurance, the offer is usually made by the applicant in the form of the application.
Acceptance takes place when an insurer's underwriter approves the application and
issues a policy.
At age 30, an applicant wants to start an insurance program, but realizing that his
insurance needs will likely change, he wants a policy that can be modified to
accommodate those changes as they occur. Which of the following policies would most
likely fit his needs?
a) Adjustable Life
b) Single Premium Whole Life
,c) Interest - sensitive Whole Life
d) Decreasing Term
Answer: a) Adjustable Life
In reference to fixed annuities, what comprises most of a life insurance company's
general account?
a) S & P 500 index
b) Conservative investments like bonds
c) Aggressive stocks and bonds
d) Company stock
Answer: b) Conservative investments like bonds.
A man is still employed at age 65 and is now eligible for Medicare. He wants to know
what health insurance coverage he is eligible to receive. Which of the following options
are available to him?
a) Reapplication for group health
b) Medicare only
c) Both group health and Medicare
d) Continuation of group health only
Answer: c) Both group health and Medicare.
Which of the following documents delivered to the policyowner includes information
about premium amounts, cash values, surrender values, and death benefits for specific
policy years?
a) Policy summary
b) Notice regarding replacement
c) Privacy notice
d) Buyer's guide
Answer: a) Policy summary
The risk management technique that is used to prevent a specific loss by not exposing
oneself to that activity is called
a) Sharing.
b) Avoidance.
c) Transfer.
d) Reduction.
Answer: b) Avoidance.
An association could buy group insurance for its members if it meets all of the following
requirements EXCEPT
a) has a constitution and by-laws.
b) Hold annual meetings.
c) Is contributory.
d) Has at least 50 members.
Answer: d) Has at least 50 members.
,~All of the above characteristics would make an association group eligible for buying
group insurance, except the group must have at least 100 members.
Who may complete a paramedical report?
a) An underwriter
b) A nursing assistant
c) A registered nurse
d) A spouse
Answer: c) A registered nurse
Which of the following are responsible for making premium payments in an HMO plan?
a) Producers
b) Insureds
c) Payors
d) Subscribers
Answer: d) Subscribers
~ Subscribers are people in whose name the contract is issued. They would be
responsible for making the premium payments.
An insurer invest the money it receives from premiums paid by its insureds. Which of
the following is TRUE regarding the interest earned on these investments?
a) It is used to lower premiums.
b) It is paid out as dividends.
c) It is used to fund executive bonuses.
d) It is used to increase the death benefit.
Answer: a) It is used to lower premiums.
~ Because insurers receive premiums before they must pay out benefits, they can
invest the premium money and use the interest to lower premium amounts charged to
insureds.
What is the purpose of the buyer's guide?
a) To allow the consumer to compare the costs of different policies
b) To provide the name and address of the agent / producer issuing the policy
c) To list all policy riders
d) To provide information about the issued policy.
Answer: a) To allow the consumer to compare the costs of different policies.
~ The buyer's guide provides generic information about life insurance polices and allows
the consumer to compare the costs of different policies The policy summary provides
specific information about the issued policy, as well as the insurer's information.
Which of the following is NOT covered by a health insurance policy?
a) Dental
b) Funeral
, c) Hospital
d) Disability
Answer: b) Funeral
Which of the following is the best reason to purchase life insurance rather than
annuities?
a) To liquidate a sum of money over a period of years.
b) To create regular income payments
c) To liquidate a sum of money over a lifetime.
d) To create an estate
Answer: d) To create an estate
~ With insurance, the death benefit creates an immediate estate should the insured die.
How many days from the finalization of a divorce or separation does the spouse of a
group health certificate owner have to notify the insurer when requesting continuance of
coverage?
a) 30
b) 45
c) 14
d) 60
Answer: d) 60
~ Within 60 days of the separation or divorce of the spouse of the group policy
certificate owner the insurer must receive notice. The insurer will notify the spouse of
the certificate owner within 14 days that the policy may be continued.
In a group policy, who is issued a certificate of insurance?
a) The individual insured
b) The health care provider
c) The insurance company
d) The employer
Answer: a) The individual insured
Which of the following is licensed solely to advise insureds about their polices?
a) Broker
b) Actuary
c) Consultant
d) Agent
Answer: c) Consultant
~ Insurance consultants offer advice and counseling regarding any contract of insurance
issued in Oregon.
Who can provide skilled nursing care?
Your Exam from Exam FX 2026/2027
Updated.
If the Director requests information regarding a claim, within how many days must the
insurer provide a response?
a) 3 days
b) 10 days
c) 21 days
d) 31 days
Answer: c) 21 days.
~ Upon an inquiry about a claim from the Director, the insurer must furnish an adequate
response within 21 days.
Issue age policy premiums increase in response to which of the following factors?
a) Increased benefits
b) Increased deductible
c) Inflation
d) The insured's age
Answer: a) Increased benefits
~ The premiums of issue age policies can only increase in response to an increase in
benefits.
In forming an insurance contract, when does acceptance usually occur?
a) When an insured submits an application.
b) When an insurer's underwriter approves coverage.
c) When an insurer delivers the policy.
d) When an insurer receives an application.
Answer: b) When an insurer's underwriter approves coverage.
~ In insurance, the offer is usually made by the applicant in the form of the application.
Acceptance takes place when an insurer's underwriter approves the application and
issues a policy.
At age 30, an applicant wants to start an insurance program, but realizing that his
insurance needs will likely change, he wants a policy that can be modified to
accommodate those changes as they occur. Which of the following policies would most
likely fit his needs?
a) Adjustable Life
b) Single Premium Whole Life
,c) Interest - sensitive Whole Life
d) Decreasing Term
Answer: a) Adjustable Life
In reference to fixed annuities, what comprises most of a life insurance company's
general account?
a) S & P 500 index
b) Conservative investments like bonds
c) Aggressive stocks and bonds
d) Company stock
Answer: b) Conservative investments like bonds.
A man is still employed at age 65 and is now eligible for Medicare. He wants to know
what health insurance coverage he is eligible to receive. Which of the following options
are available to him?
a) Reapplication for group health
b) Medicare only
c) Both group health and Medicare
d) Continuation of group health only
Answer: c) Both group health and Medicare.
Which of the following documents delivered to the policyowner includes information
about premium amounts, cash values, surrender values, and death benefits for specific
policy years?
a) Policy summary
b) Notice regarding replacement
c) Privacy notice
d) Buyer's guide
Answer: a) Policy summary
The risk management technique that is used to prevent a specific loss by not exposing
oneself to that activity is called
a) Sharing.
b) Avoidance.
c) Transfer.
d) Reduction.
Answer: b) Avoidance.
An association could buy group insurance for its members if it meets all of the following
requirements EXCEPT
a) has a constitution and by-laws.
b) Hold annual meetings.
c) Is contributory.
d) Has at least 50 members.
Answer: d) Has at least 50 members.
,~All of the above characteristics would make an association group eligible for buying
group insurance, except the group must have at least 100 members.
Who may complete a paramedical report?
a) An underwriter
b) A nursing assistant
c) A registered nurse
d) A spouse
Answer: c) A registered nurse
Which of the following are responsible for making premium payments in an HMO plan?
a) Producers
b) Insureds
c) Payors
d) Subscribers
Answer: d) Subscribers
~ Subscribers are people in whose name the contract is issued. They would be
responsible for making the premium payments.
An insurer invest the money it receives from premiums paid by its insureds. Which of
the following is TRUE regarding the interest earned on these investments?
a) It is used to lower premiums.
b) It is paid out as dividends.
c) It is used to fund executive bonuses.
d) It is used to increase the death benefit.
Answer: a) It is used to lower premiums.
~ Because insurers receive premiums before they must pay out benefits, they can
invest the premium money and use the interest to lower premium amounts charged to
insureds.
What is the purpose of the buyer's guide?
a) To allow the consumer to compare the costs of different policies
b) To provide the name and address of the agent / producer issuing the policy
c) To list all policy riders
d) To provide information about the issued policy.
Answer: a) To allow the consumer to compare the costs of different policies.
~ The buyer's guide provides generic information about life insurance polices and allows
the consumer to compare the costs of different policies The policy summary provides
specific information about the issued policy, as well as the insurer's information.
Which of the following is NOT covered by a health insurance policy?
a) Dental
b) Funeral
, c) Hospital
d) Disability
Answer: b) Funeral
Which of the following is the best reason to purchase life insurance rather than
annuities?
a) To liquidate a sum of money over a period of years.
b) To create regular income payments
c) To liquidate a sum of money over a lifetime.
d) To create an estate
Answer: d) To create an estate
~ With insurance, the death benefit creates an immediate estate should the insured die.
How many days from the finalization of a divorce or separation does the spouse of a
group health certificate owner have to notify the insurer when requesting continuance of
coverage?
a) 30
b) 45
c) 14
d) 60
Answer: d) 60
~ Within 60 days of the separation or divorce of the spouse of the group policy
certificate owner the insurer must receive notice. The insurer will notify the spouse of
the certificate owner within 14 days that the policy may be continued.
In a group policy, who is issued a certificate of insurance?
a) The individual insured
b) The health care provider
c) The insurance company
d) The employer
Answer: a) The individual insured
Which of the following is licensed solely to advise insureds about their polices?
a) Broker
b) Actuary
c) Consultant
d) Agent
Answer: c) Consultant
~ Insurance consultants offer advice and counseling regarding any contract of insurance
issued in Oregon.
Who can provide skilled nursing care?
