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A BUNDLE FOR CLAIMS-Texas Life and Health Insurance Exams with solutions
Texas Life and Health Insurance Exam with correct answers
[Show more]Texas Life and Health Insurance Exam with correct answers
[Show more]What type of reinsurance contract involves two companies automatically sharing their risk exposure? 
Treaty 
 
 
 
The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future obligations to its policyholders is called 
reserves 
 
 
 
When third-party own...
Preview 2 out of 13 pages
Add to cartWhat type of reinsurance contract involves two companies automatically sharing their risk exposure? 
Treaty 
 
 
 
The stated amount or percent of liquid assets that an insurer must have on hand that will satisfy future obligations to its policyholders is called 
reserves 
 
 
 
When third-party own...
At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? 
Upon completion of the application 
 
 
 
Who elects the governing body of a mutual insurance company? 
policyholders 
 
 
 
An insurance applicant MUST be informed of an investi...
Preview 3 out of 24 pages
Add to cartAt what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? 
Upon completion of the application 
 
 
 
Who elects the governing body of a mutual insurance company? 
policyholders 
 
 
 
An insurance applicant MUST be informed of an investi...
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 
pay the policy proceeds in the amount the premiums would have purchased at the insured's actual age 
 
 
 
The provision...
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Add to cartIf, 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 
pay the policy proceeds in the amount the premiums would have purchased at the insured's actual age 
 
 
 
The provision...
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. 
Answer: C 
To prevent ...
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Add to cartWhy 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. 
Answer: C 
To prevent ...
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 
A...
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Add to cartAn 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 
A...
Which of these characteristics is consistent with a Straight Life Policy? 
Premiums are payable for as long as there is insurance coverage in force 
 
 
 
Which of the following are Equity Indexed annuities typically invested in? 
S&P 500 
 
 
 
Which of the following does Social Security NOT provid...
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Add to cartWhich of these characteristics is consistent with a Straight Life Policy? 
Premiums are payable for as long as there is insurance coverage in force 
 
 
 
Which of the following are Equity Indexed annuities typically invested in? 
S&P 500 
 
 
 
Which of the following does Social Security NOT provid...
Who is considered a field underwriter? 
An agent 
 
 
 
When must insurable interest exist in life insurance? 
Application or issue date 
 
 
 
If no receipt is issued at the time of application, a statement of good health is usually required at the time of? 
Policy delivery 
 
 
 
The Medical Infor...
Preview 2 out of 12 pages
Add to cartWho is considered a field underwriter? 
An agent 
 
 
 
When must insurable interest exist in life insurance? 
Application or issue date 
 
 
 
If no receipt is issued at the time of application, a statement of good health is usually required at the time of? 
Policy delivery 
 
 
 
The Medical Infor...
urance 
(General concept) 
- transfers the risk of loss from an individual to an insurer 
- based on the principle of indemnity 
- based on the principle of risk (risk pooling) 
 
 
 
insurable interest 
(General Concept) 
- must exist at the time of the application 
- insuring one's own life, fami...
Preview 2 out of 14 pages
Add to carturance 
(General concept) 
- transfers the risk of loss from an individual to an insurer 
- based on the principle of indemnity 
- based on the principle of risk (risk pooling) 
 
 
 
insurable interest 
(General Concept) 
- must exist at the time of the application 
- insuring one's own life, fami...
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...
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Add to cartD 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...
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? 
Increase her policy's coverage amount 
 
 
 
When an insurer issues a poli...
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Add to cartT 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? 
Increase her policy's coverage amount 
 
 
 
When an insurer issues a poli...
A certificate of _____ permits an insurance company to transact business in Texas. 
Authority 
 
 
 
Which of the following statements about Health Reimbursement Arrangements (HRA) is CORRECT? 
If the employee paid for qualified medical expenses, the reimbursements may be tax-free 
 
 
 
The individ...
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Add to cartA certificate of _____ permits an insurance company to transact business in Texas. 
Authority 
 
 
 
Which of the following statements about Health Reimbursement Arrangements (HRA) is CORRECT? 
If the employee paid for qualified medical expenses, the reimbursements may be tax-free 
 
 
 
The individ...
Convertible Term Life Insurance 
This optional form of term life insurance lets the policyowner convert the policy to a whole life policy without having to prove insurability. 
 
 
 
Ordinary Life Insurance 
This class of individual life insurance has many flexible options and features policies with...
Preview 2 out of 12 pages
Add to cartConvertible Term Life Insurance 
This optional form of term life insurance lets the policyowner convert the policy to a whole life policy without having to prove insurability. 
 
 
 
Ordinary Life Insurance 
This class of individual life insurance has many flexible options and features policies with...
claimant 
a person who submits a claim for payment of benefits 
 
 
 
dividend 
a payment made by a policy (distribution of profits or returned of unused funds) 
 
 
 
lapse 
policy termination due to a non payment of premium 
 
 
 
Nonforfeiture Values 
benefits in a life insurance policy that the ...
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Add to cartclaimant 
a person who submits a claim for payment of benefits 
 
 
 
dividend 
a payment made by a policy (distribution of profits or returned of unused funds) 
 
 
 
lapse 
policy termination due to a non payment of premium 
 
 
 
Nonforfeiture Values 
benefits in a life insurance policy that the ...
Which type of life policy contains a monthly mortality charge as well as self-directed investment choices? 
Variable Universal Life 
 
 
 
Insurance contracts are known as because certain future conditions or acts must occur before any claims can be paid. 
conditional 
 
 
 
Question Benefits for dr...
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Add to cartWhich type of life policy contains a monthly mortality charge as well as self-directed investment choices? 
Variable Universal Life 
 
 
 
Insurance contracts are known as because certain future conditions or acts must occur before any claims can be paid. 
conditional 
 
 
 
Question Benefits for dr...
What law protects consumers from the circulation of inaccurate or obsolete information? 
The Fair Credit Reporting Act 
 
 
 
What do individuals use to transfer their risk of loss to a larger group? 
Insurance 
 
 
 
What term describes the fee a person pays an insurance company to start coverage? ...
Preview 4 out of 31 pages
Add to cartWhat law protects consumers from the circulation of inaccurate or obsolete information? 
The Fair Credit Reporting Act 
 
 
 
What do individuals use to transfer their risk of loss to a larger group? 
Insurance 
 
 
 
What term describes the fee a person pays an insurance company to start coverage? ...
reserves 
the accounting measurement of an insurer's future obligations to its policy holders 
 
 
 
stock companies 
owned by stockholder, who get paid a share of the company's profit through dividends. NON_PAR 
 
 
 
mutual companies 
no stockholders, policy holders own the company. get paid thr...
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Add to cartreserves 
the accounting measurement of an insurer's future obligations to its policy holders 
 
 
 
stock companies 
owned by stockholder, who get paid a share of the company's profit through dividends. NON_PAR 
 
 
 
mutual companies 
no stockholders, policy holders own the company. get paid thr...
The accounting measurement of an insurer's future obligations to its policy holders 
Reserves 
 
 
 
Who elects the governing body of a mutual insurance company? 
Policyholders 
 
 
 
A group owned insurance company that is formed to assume and spread liability risks of its members is known as 
Ris...
Preview 3 out of 28 pages
Add to cartThe accounting measurement of an insurer's future obligations to its policy holders 
Reserves 
 
 
 
Who elects the governing body of a mutual insurance company? 
Policyholders 
 
 
 
A group owned insurance company that is formed to assume and spread liability risks of its members is known as 
Ris...
Health insurance coverage under COBRA, HIPAA guarantees that the person will 
Have Acces to a guaranteed-issue individual health policy, regardless of health 
 
 
 
All the following statements about ordinary (or straight) whole life insurance are correct 
The cash value remains level throughout the...
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Add to cartHealth insurance coverage under COBRA, HIPAA guarantees that the person will 
Have Acces to a guaranteed-issue individual health policy, regardless of health 
 
 
 
All the following statements about ordinary (or straight) whole life insurance are correct 
The cash value remains level throughout the...
The Universal Life Policy is called an unbundled Life Policy because the policyholder can see the expense charges, the interest earned, and the 
Cost of insurance 
 
 
 
The investment gains from a Universal Life Policy usually go toward 
the cash value 
 
 
 
What is the MINIMUM benefit period that...
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Add to cartThe Universal Life Policy is called an unbundled Life Policy because the policyholder can see the expense charges, the interest earned, and the 
Cost of insurance 
 
 
 
The investment gains from a Universal Life Policy usually go toward 
the cash value 
 
 
 
What is the MINIMUM benefit period that...
At what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? 
Upon completion of the application 
 
 
 
Who elects the governing body of a mutual insurance company? 
policyholders 
 
 
 
An insurance applicant must be informed of an investi...
Preview 4 out of 172 pages
Add to cartAt what point must a life insurance applicant be informed of their rights that fall under the Fair Credit Reporting Act? 
Upon completion of the application 
 
 
 
Who elects the governing body of a mutual insurance company? 
policyholders 
 
 
 
An insurance applicant must be informed of an investi...
J purchased a Disability Income Policy that ONLY J can terminate and on which the rates will never increase above those illustrated in the policy. Which of the following types of policies did J purchase? 
Noncancelable 
 
 
 
What does a Face Amount Plus Cash Value Policy supposed to pay at the insu...
Preview 1 out of 4 pages
Add to cartJ purchased a Disability Income Policy that ONLY J can terminate and on which the rates will never increase above those illustrated in the policy. Which of the following types of policies did J purchase? 
Noncancelable 
 
 
 
What does a Face Amount Plus Cash Value Policy supposed to pay at the insu...
1) "Twisting" is a commonly-used term describing: 
A- The making of misleading representations as to the financial condition of any insurer 
B- A misrepresentation made to a policyholder for the purpose of inducing the lapse, forfeiture, surrender, retention or conversion of any policy of insuranc...
Preview 1 out of 4 pages
Add to cart1) "Twisting" is a commonly-used term describing: 
A- The making of misleading representations as to the financial condition of any insurer 
B- A misrepresentation made to a policyholder for the purpose of inducing the lapse, forfeiture, surrender, retention or conversion of any policy of insuranc...
In a survivorship life policy, when does the insurer pay the death benefit? 
a) 
If the insured survives to age 100 
b) 
Upon the last death 
c) 
Upon the first death 
d) 
Half at the first death, and half at the second death 
b) 
Upon the last death 
 
 
 
#3. 
A father owns a life insurance policy...
Preview 3 out of 23 pages
Add to cartIn a survivorship life policy, when does the insurer pay the death benefit? 
a) 
If the insured survives to age 100 
b) 
Upon the last death 
c) 
Upon the first death 
d) 
Half at the first death, and half at the second death 
b) 
Upon the last death 
 
 
 
#3. 
A father owns a life insurance policy...
1) Sandra Timms, age 27, is advised by her producer to purchase Life insurance to cover a 20-year-amortized $50,000 business-improvement loan. Which of the following plans would adequately protect Ms. Timms at the minimum premium outlay? 
 
A- $50,000 Whole Life policy 
B- $50,000 Level Term policy ...
Preview 4 out of 73 pages
Add to cart1) Sandra Timms, age 27, is advised by her producer to purchase Life insurance to cover a 20-year-amortized $50,000 business-improvement loan. Which of the following plans would adequately protect Ms. Timms at the minimum premium outlay? 
 
A- $50,000 Whole Life policy 
B- $50,000 Level Term policy ...
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