Texas Life and Health Insurance Final Exam Questions with 100% Correct Answers

At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? Correct Answer Upon completion of the application Who elects the governing body of a mutual insurance company? Correct Answer policyholders An insurance applicant MUST be in...

If, at the time of an insured's death, the insurance company discovers that the insured's age was misstated on the application for life insurance, the company will most likely Correct Answer pay the policy proceeds in the amount the premiums would have purchased at the insured's actual age The...

Why does an insurer have a 2-year suicide clause? a) because the commissioner of insurance requires it. b) suicide is never paid for in life insurance. c)to prevent payment of an immediate claim for a person contemplating suicide. d) to help an insurer be more profitable. Correct Answer Answer: ...

An annuity promises that, if the annuitant dies before receiving payments equal to the correct value, the payments will be continued to a beneficiary until an amount equal to the contract value has been paid. This type of annuity is called An installment Refund annuity A Straight Life annuity ...

T owns an Accident & Health policy and notifies her insurance company that she has chosen a less hazardous occupation. Under the Change of Occupation provision, which of the following actions may her insurance company take? Correct Answer Increase her policy's coverage amount When an insurer iss...

Which of these characteristics is consistent with a Straight Life Policy? Correct Answer Premiums are payable for as long as there is insurance coverage in force Which of the following are Equity Indexed annuities typically invested in? Correct Answer S&P 500 Which of the following does Social...

An applicant who receives a preferred risk classification qualifies for Correct Answer Lower premiums than a person who receives a standard risk The full premium was submitted with the application for life insurance, and the policy was issued two weeks later as requested. When does the policy cov...

Insurance Correct Answer Contractual coverage binding the insurer (insurance company) to indemnify (compensate for loss) the insured (people or businesses) against a specified loss in return for money (premiums). Law of Large Numbers Correct Answer What insurance is based on. The bigger the obser...

Risk Correct Answer chance of loss Speculative risk Correct Answer -involves the chance of gain or loss and is NOT insurable -ex: gambling Pure risk Correct Answer involves only the chance of loss and is insurable Exposure Correct Answer being subject to the possibility of loss because of ...

D is an architect receiving Disability Income benefits who is not able to return to work full time, but can work on a part-time basis. Which of these features would allow D to continue receiving benefits? *Residual Benefit clause *Waiver Benefit clause *Concurrent Benefit clause *Guaranteed Be...