Exam (elaborations)
TEXAS LIFE AND HEALTH INSURANCE EXAM QUESTIONS WITH COMPLETE ANSWERS
- Course
- Institution
TEXAS LIFE AND HEALTH INSURANCE EXAM QUESTIONS WITH COMPLETE ANSWERS
[Show more]
Content preview
TEXAS LIFE AND HEALTH INSURANCEEXAM QUESTIONS WITH COMPLETE
ANSWERS
In Texas, which of these statements regarding the Suicide clause is True? - Answer-An
Insurer may not use suicide as a defence against payment after the second year
S owns a life insurance policy with cash values that fluctuate according to the
underlying investment performance of common stocks. Which of these policies does S
own? - Answer-Variable Whole Life
The percentage of an individual's Primary Insurance Amount (PIA) determines the
benefits paid
which of the following programs? - Answer-Social Security Disability Income
What type of life insurance incorporates flexible premiums and an adjustable death
benefit? - Answer-Universal Life
Which of the following policy provisions prohibits an insurance company from
incorporating external
documents into an insurance policy? - Answer-Entire Contract
Which of the following actions may NOT be taken by an insurance company to insure a
substandard
applicant for disability income coverage? - Answer-Lengthen the contestability period
The provision in a Group Health policy that allows the insurer to postpone coverage for
a critical
illness 30 days after the policy's effective date is referred to as the: - Answer-Waiting
Period
K is shopping for a permanent life insurance policy that will offer her the MOST
protection per dollar of
annual premium. Which of these policies best fits her needs? - Answer-Straight life
All of these statements about the Commissioner of Insurance are true EXCEPT -
Answer-The Commissioner must be elected
The _________ policy clause identifies which losses resulting from an accident or
sickness are insured by which policy? - Answer-Insuring
What group term life feature permits an individual to depart from the group and continue
to be covered
,without providing evidence of insurability? - Answer-Conversion
Which of the following characteristics is associated with a large group disability income
policy? - Answer-No medical underwriting
What is the initial requirement for an insured to become eligible for benefits under the
Waiver of
Premium provision? - Answer-Insured must be under a physician's care
Q applied for life insurance and submitted the initial premium on January 1. The policy
was issued
February 1, but it was not delivered by the agent until February 7. Q is dissatisfied and
returns the
policy February 13. How will the insurer handle this situation? - Answer-Policy was
returned within the free-look period, premium will be fully refunded
T was insured under an individual Disability Income policy and was severely burned in a
fire. As a
result, T became totally disabled. The insurer began making monthly benefit payments,
but later
discovered that the fire was set by T in what was described as arson. What actions will
the insurer
take? - Answer-The insurer will rescind the policy, deny the claim, and recover all
payments made
Variable annuities may invest premiums in each of the following, EXCEPT: - Answer-
Insurer's corporate business account
Which of the following is TRUE about a qualified retirement that is "top heavy"? -
Answer-More than 60% of plan assets are in key employee accounts
A level premium indicates: - Answer-The premium is fixed for the entire duration of the
contract
P died five years after purchasing a life policy. While investigating the policy material
misrepresentations made by P during the application. What process insurer take? -
Answer-Beneficiary will be paid the Death Benefit
In Texas, how long must a policy be in force before an insurance company must pay
death benefits for
suicide? - Answer-2 years
D owns a Whole Life policy that was purchased 10 years ago. If the premium payments
suddenly stop
and D takes no additional action, which Nonforfeiture Option will the insurer likely
proceed with? - Answer-Extended term
, Which type of renewability best describes a Disability Income policy that covers an
individual until the
age of 65, but the insurer has the right to change the premium rate for the overall risk
class? - Answer-Guaranteed renewable
An applicant MUST receive an Outline of Coverage when an application is taken for
a(n) - Answer-Medicare Supplement policy
The cash value in a(n)
Life policy may fluctuate to reflect changing assumptions
regarding mortality cost, interest, and expense factors. - Answer-Universal
The Notice of Claims provision requires a policyowner to: - Answer-notify an insurer of a
claim within a specified time
Towns 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? - Answer-Increase he policy's
coverage amount
In an insurance contract, the insurer is the only party who makes a legally enforceable
promise. What
kind of contract is this? - Answer-Unilateral
When is the face amount of a Whole Life policy paid? - Answer-When the insured dies
or at the policy's maturity date, whichever happens first
Which of the following actions is NOT possible with a Universal Life policy? - Answer-
Premiums may be applied as a credit against income tax
Which of the following will a Long Term Care plan typically provide benefits for? -
Answer-home health care
Which health policy clause stipulates that an insurance company must attach a copy of
the application to the policy to ensure that it is part of the contract? - Answer-Entire
Contract
D is the policyowner and insured for a $50,000 life insurance policy. The beneficiary is
D's wife. D and
his wife divorce and D remarries, transferring ownership of his policy to his new wife. If
D dies without
making any further changes, to whom will the policy proceeds be paid to? - Answer-Ex-
wife
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller biggdreamer. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
73243 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now