Life & Health License Test Texas Exam 2023 with 100% correct answers

What is the main purpose of the Seven-pay Test? It determines if the insurance policy is an MEC. Which of the following insurance arrangements will be appropriate for a parent buying a life insurance policy on a child where the parent is the policyowner? Third-party ownership Which of the following best defines the "owner" as it pertains to life settlement contracts? The policyowner of the life insurance policy Which of the following is NOT an example of a business use of Life Insurance? Workers Compensation An insured under a life insurance policy has been diagnosed with a terminal illness and has 6 months to live. The insured knows that his financial state will worsen even more with the upcoming medical expenses. What option could the insured utilize? Viatical settlement Which of the following is INCORRECT concerning a noncontributory group plan? The employer receives a master policy, and employees receive a certificate of insurance. A life insurance policy used to fund an agreement that contractually establishes the intent of someone to purchase a business upon the insured business owner's death is a Buy-sell agreement. Which of the following employees insured under a group life plan would be allowed to convert to individual insurance of the same coverage once the plan is terminated? Those who have been insured under the plan for at least 5 years A partnership buy-sell agreement in which each partner purchases insurance on the life of each of the other partners is called a Cross-purchase plan. A producer is helping a married couple determine the financial needs of their children in the event one or both should die prematurely. This is a personal use of life insurance known as Survivor protection