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TEXAS LIFE AND HEALTH INSURANCE (EXAMFX) NEWEST ACTUAL EXAM 2024 QUESTIONS AND CORRECT ANSWERS
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TEXAS LIFE AND HEALTH INSURANCE (EXAMFX) NEWEST ACTUAL EXAM 2024 QUESTIONS AND CORRECT ANSWERS
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TEXAS LIFE AND HEALTH INSURANCE(EXAMFX) NEWEST ACTUAL EXAM 2024
QUESTIONS AND CORRECT ANSWERS
An individual purchased a $100,000 Joint Life policy on
himself and his wife. Eight years later, he died in an
automobile accident. How much will his wife receive from
the policy?
ANothing
B$50,000
C$100,000
D$200,000 Correct Answer C. $100000
When would a 20-pay whole life policy endow?
AWhen the insured reaches age 100
BAt the insured's age 65
CAfter 20 payments
DIn 20 years Correct Answer AWhen the insured reaches
age 100
What kind of policy allows withdrawals or partial
surrenders?
ATerm policy
BVariable whole life
CUniversal life
D20-pay life Correct Answer CUniversal life
,Under a 20-pay whole life policy, in order for the policy to
pay the death benefit to a beneficiary, the premiums must
be paid
AFor 20 years or until death, whichever occurs first.
BUntil the policyowner's age 65.
CFor 20 years.
DUntil the policyowner's age 100, when the policy
matures. Correct Answer AFor 20 years or until death,
whichever occurs first.
Which policy component decreases in decreasing term
insurance?
ADividend
BPremium
CFace amount
DCash value Correct Answer C Face Amount
A man decided to purchase a $100,000 Annually
Renewable Term Life policy to provide additional
protection until his children finished college. He discovered
that his policy
ARequired a premium increase each renewal.
BBuilt cash values.
CRequired proof of insurability every year.
DDecreased death benefit at each renewal. Correct
Answer ARequired a premium increase each renewal.
Which type of life insurance policy generates immediate
cash value?
AContinuous Premium
BSingle Premium
,CLevel Term
DDecreasing Term Correct Answer B. Single Premium
What happens when a policy is surrendered for its cash
value?
AThe policy can be converted to term coverage.
BCoverage ends and the policy cannot be reinstated.
CCoverage ends but the policy can be reinstated at any
time.
DThe policy can be reinstated by paying back all policy
loans and premiums. Correct Answer B. Coverage ends
and the policy cannot be reinstated.
A father owns a life insurance policy on his 15-year-old
daughter. The policy contains the optional Payor Benefit
rider. If the father becomes disabled, what will happen to
the life insurance premiums?
AThe insured will have to pay premiums for 6 months. If at
the end of this period the father is still disabled, the
insured will be refunded the premiums.
BThe insured's premiums will be waived until she is 21.
CThe premiums will become tax deductible until the
insured's 18th birthday.
DSince it is the policyowner, and not the insured, who has
become disabled, the life insurance policy will not be
affected. Correct Answer B. The insured's premiums will
be waived until she is 21.
Which of the following policy components contains the
company's promise to pay?
AEntire contract provision
, BInsuring clause
CPremium mode
DConsideration clause Correct Answer B. Insuring Clause
Which nonforfeiture option provides coverage for the
longest period of time?
AExtended term
BPaid-up option
CAccumulated at interest
DReduced paid-up Correct Answer D. Reduced Paid-Up
The validity of coverage under a life insurance policy may
not be contested, except for nonpayment of premium, after
the policy has been in force for at least how many years?
A1 year
B2 years
C5 years
D7 years Correct Answer B. 2 years
Which of the following is TRUE about nonforfeiture
values?
AA table showing nonforfeiture values for the next 10
years must be included in the policy.
BPolicyowners do not have the authority to decide how to
exercise nonforfeiture values.
CThey are required by state law to be included in the
policy.
DThey are optional provisions. Correct Answer C. They
are required by state law to be included in the policy.
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