TX GENERAL LINES LIFE, ACCIDENT AND HEALTH EXAM PRE Questions and Answers with complete solutions

All the following statements about ordinary (or straight) whole life insurance are correct-ANSWER-The cash value remains level throughout the life of the policy Which activity in NOT an error or omission that makes an agent or producer legally to both the insurance and the insure-ANSWER-Placing insurance with an approved surplus line insurer All the following statements about the taxation of annuities are correct EXEPT:-ANSWER-Qualified annuities are taxes no different than no qualified annuities Which of the following statements about utmost good faith in insurance is correct-ANSWER-Both the insurance and the insurer must act in utmost good faith Which annuity settlement option pays income for the annuitant's life, but no less than for a specified number of year-ANSWER-Life income with period certain Tim has paid only four premium totally $1000 on his health insurance policy when he was diagnosed with cancer. The insurance company paid more than $100.000 to cover the medical bills for his treatments which of the following characteristics of insurance contracts-ANSWER-They are aleatory