Texas Life and Health Insurance Questions with 100% Correct Answers

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 coverage become effective? Correct Answer As of the application date When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following? Correct Answer Consideration If a policy includes a free-look period of at least 10 days, the Buyer's Guide may be delivered to the applicant Correct Answer With the policy Which of the following is NOT the consideration in a policy? Correct Answer The application given to a prospective insured 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 Correct Answer Required a premium increase each renewal Which of the following is NOT true regarding the annuitant? Correct Answer The annuitant cannot be the same person as the annuity owner An insured purchased a 10-year level term life policy that is guaranteed renewable and convertible. What happens at the end of the 10-year term? Correct Answer The insured may renew the policy for another 10 years, but at a higher premium rate Which option for Universal life allows the beneficiary to collect both the death benefit and cash value upon the death of the insured? Correct Answer Option B The president of a company is starting an annuity and decides that his corporation will be the annuitant. Which of the following statements is true? Correct Answer The annuitant must be a natural person Who bears all of the investment risk in a fixed annuity? Correct Answer The insurance company All other factors being equal what would the premium be like in a survivorship life pouchy as compared to the premium in a joint life policy? Correct Answer Lower