EXAMFX Cheat Sheet 2026

The 30 highest-yield EXAMFX facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. A named insured under a PAP loans their car to a friend who is NOT listed on the policy. The friend causes an accident. How does the PAP respond? → The PAP covers the friend as a permissive user
2. Under the MEC (Modified Endowment Contract) rules, what tax treatment applies to withdrawals? → Withdrawals are taxed last-in-first-out (LIFO), meaning gains are distributed first
3. A 'waiver of premium rider' is most commonly added to a policy based on which underwriting consideration? → The insured's desire to protect premium payments in case of total disability
4. Under a homeowners policy, what does the 'appraisal' clause provide? → A process to resolve disputes over the amount of a loss between insurer and insured
5. A homeowner's policy has a $250,000 Coverage A limit. What is the maximum Coverage D (Loss of Use) limit under a standard HO-3 policy? → 50,000 (20% of Coverage A)
6. Which of the following is NOT a valid reason for an insurer to contest a life insurance claim? → Death occurring in a foreign country
7. Which of the following is an example of a 'moral hazard' that an underwriter must consider? → An applicant who has a history of filing fraudulent claims
8. When a health policy contains a Misstatement of Age provision and the insured's age was understated, the insurer will typically: → Adjust the benefit to what the correct premium would have purchased
9. What is a pre-existing condition in the context of health insurance? → A medical condition that existed before the health insurance policy became effective
10. Family income policies combine a whole life base with which type of rider to provide income after the insured's death? → Decreasing term rider
11. Which health policy provision gives the insurer the right to recover benefit payments made on behalf of the insured from a liable third party? → Subrogation provision
12. Under the CGL, which condition allows the insurer to recover payments it made on behalf of the insured from a negligent third party? → Transfer of Rights of Recovery (Subrogation)
13. If an insured submits a proof of loss for a health claim, within how many days must the insurer pay the claim under a standard Claim Settlement provision? → 60 days
14. Which statement correctly describes how PAP liability coverage handles punitive damages? → Most PAP policies exclude punitive damages
15. What is the purpose of a reinsurance arrangement in underwriting? → To transfer a portion of risk to another insurer
16. Which homeowners form provides the BROADEST coverage for personal property? → HO-5 (Comprehensive Form)
17. Which statement best describes the 'other insurance' condition in a CGL policy when two CGL policies cover the same loss? → Policies share the loss on a pro-rata or excess basis as specified
18. A health policy's Grace Period provision typically allows how many days for an individual policy after a missed premium? → 31 days
19. A universal life insurance policy's 'corridor' requirement ensures that: → The death benefit always exceeds the cash value by a required minimum amount
20. Which of the following actions would NOT violate anti-rebating laws? → Providing a complimentary pen with the company logo
21. Which type of disability income policy provision prevents an insurer from canceling coverage as long as premiums are paid? → Noncancelable provision
22. Which policy type offers the insured the ability to skip premium payments without lapsing the policy, provided sufficient cash value exists? → Universal life
23. Which mandatory provision requires that health insurers furnish claim forms to the insured within how many days of receiving notice of a claim? → 15 days
24. Which of the following life insurance policies accumulates cash value that the policyowner can direct into equity, bond, or money market subaccounts? → Variable life
25. What does a Health Maintenance Organization (HMO) require from its members? → Use of in-network providers only, except in emergencies
26. A 'conversion privilege' in a group health or life insurance plan allows an employee who leaves the group to: → Convert to individual coverage without proving insurability
27. During the accumulation phase of a deferred annuity, the owner's funds grow on a: → Tax-deferred basis
28. An insured rents out a portion of their home to a tenant. How does this affect Coverage B (Other Structures)? → Structures rented to others are excluded from Coverage B
29. The Proof of Loss provision requires an insured to submit written proof of loss to the insurer within how many days of a loss? → 90 days
30. In property insurance, 'coinsurance' requires the insured to carry coverage equal to a specified percentage of the property's value or face: → A penalty in which the insurer pays only a proportional share of losses