TEXAS HEALTH AND LIFE INSURANCE EXAM QUESTIONS WITH
VERIFIED SOLUTIONS.
1) Why does an insurer have a 2-year suicide clause?
a a a a a a a a
A) because the commissioner of insurance requires it. a a a a a a
B) suicide is never paid for in life insurance. a a a a a a a
C) to prevent payment of an immediate claim for a person contemplating suicide.
a a a a a a a a a a a
D) to help an insurer be more profitable. -- Correct Answer ✔✔ C
a a a a a a a a a a a a a
To prevent payment of an immediate claim for a person contemplating suicide.
a a a a a a a a a a a
2) Which of these could the owner of a life insurance policy do when there is a
a a a a a a a a a a a a a a a a
collateral assignment? a a
A) determine how the dividends are used. a a a a a a
B) cash surrender the policy. a a a
C) obtain another loan. a a a
D) cancel the policy. -- Correct Answer ✔✔ A a a a a a a a a
Determine how the dividends are used. a a a a a
3) When only the insurer is allowed to alter an insurance contract, the clause that
a a a a a a a a a a a a a a
provides this is called?
a a a
A) ownership a
B) entire contract a a
C) consideration a
D) incontestable -- Correct Answer ✔✔ B a a a a a a
Entire contracta
4) Which of these is required to reinstate a lapsed policy?
a a a a a a a a a a
A) obtain a loan a a a
B) fill out a new application
a a a a a
C) pay a late fee a a a a
D) provide evidence of insurability -- Correct Answer ✔✔ D
a a a a a a a a a
Provide evidence of insurability
a a a
,5) The insuring clause in an adjustable life policy has all the following EXCEPT?
a a a a a a a a a a a a
A) insured a
B) insurer a
C) amount of premium a a a
D) amount of death benefit -- Correct Answer ✔✔ C a a a a a a a a a
Amount of premium a a
6) Which of the following cannot request or make a change to alter a life insurance
a a a a a a a a a a a a a a a
policy? a
A) the agent who wrote the policy
a a a a a a
B) the policy owner a a a
C) an executive officer of the insurer
a a a a a a
D) a person who has absolute assignment -- Correct Answer ✔✔ A
a a a a a a a a a a a
The agent who wrote the policy
a a a a a
7) Which of these cannot sign or request a change in an insurance contract?
a a a a a a a a a a a a a
A) policy owner a a
B) insured a
C) executive officer of insurer a a a a
D) producer of insurer -- Correct Answer ✔✔ D a a a a a a a a
Producer of insurer a a
8) When the policy owner pays a premium in exchange for the insurer's promise to pay,
a a a a a a a a a a a a a a
what provision is this?
a a a a a
A) consideration
B) entire contract a a
C) insuring clause a a
D) changes -- Correct Answer ✔✔ A a a a a a a
Consideration
9) When the insurer cannot contest a claim after 2 years, that is called?
a a a a a a a a a a a a a
A) suicide clause a a
B) incontestability clause a a
C) entire contract a
D) consideration clause -- Correct Answer ✔✔ B a a a a a a a
Incontestability clause a
,10) Misstatement of age or gender on the application will result in? a a a a a a a a a a a
A) the policy being considered void or cancelled
a a a a a a a
B) return of premiums a a
C) death benefit paid adjusted to fit true age and gender a a a a a a a a a a
D) full death benefit regardless -- Correct Answer ✔✔ C
a a a a a a a a a
Death benefit paid adjusted to fit true age and gender.
a a a a a a a a a
11) What happens if a person returns a policy during the free look period?
a a a a a a a a a a a a
A) the insured may apply for another policy without a medical exam
a a a a a a a a a a a
B) the policy is immediately terminated; the insurer retains the premium for the
a a a a a a a a a a a a
underwriting costs a
C) a refund of premiums minus the number of days the policy was in effect
a a a a a a a a a a a a a a
D) a full refund of all premiums paid is returned -- Correct Answer ✔✔ D
a a a a a a a a a a a a a a
A full refund of all premiums paid is returned.
a a a a a a a a
12) An applicant did not disclose a medical condition on a life insurance application 5
a a a a a a a a a a a a a a
years later that person died due to the non disclosed condition. The insurer will?
a a a a a a a a a a a a a
A) keep all premiums and void the policy a a a a a a a
B) refund all premiums and void the policy a a a a a a a
C) pay the whole amount of the policy to the beneficiary
a a a a a a a a a a
D) pay half of the policy to the beneficiary -- Correct Answer ✔✔ C
a a a a a a a a a a a a a
Pay the whole amount of the policy to the beneficiary
a a a a a a a a a
13) An applicant lied about their age for a universal life policy. The insurer found out the
a a a a a a a a a a a a a a a a
truth at the time of death. The insurer will?
a a a a a a a a a
A) request the beneficiary to pay back the premiums for the correct age before
a a a a a a a a a a a a a
paying the death benefit a a a a
B) refund all premiums and void the policy a a a a a a a
C) pay the policy death benefit to reflect the correct age
a a a a a a a a a a
D) pay the policy as it was issued -- Correct Answer ✔✔ C
a a a a a a a a a a a a
Pay the policy death benefit to reflect the correct age
a a a a a a a a a
14) A policy owner/insured takes a loan of 1/2 the cash value. The owner doesn't pay any
a a a a a a a a a a a a a a a a
interest that accumulates on the loan. Which of these would be true?
a a a a a a a a a a a a
A) dividends are withheld until the loan is paid back a a a a a a a a a
, B) interest is added to the loan annually a a a a a a a
C) interest is deducted from the loan annually a a a a a a a
D) dividends and interest are both withheld until the loan is paid back -- Correct a a a a a a a a a a a a a a
Answer ✔✔ B a a a
Interest is added to the loan annually a a a a a a
15) Which of the following is NOT a non forfeiture option?
a a a a a a a a a a
A) reduced paid up a a a
B) extended term a a
C) cash surrender a a
D) life income -- Correct Answer ✔✔ D a a a a a a a
Life income
a
16) When an insured die with an outstanding loan on the policy which of the following
a a a a a a a a a a a a a a a
applies? a
A) nothing is payable the loan voids the policy's death benefits a a a a a a a a a a
B) the death benefit is payable minus any outstanding loans plus interest on the
a a a a a a a a a a a a a
loan
C) all of the death benefit is paid without reductions
a a a a a a a a a
D) the loan must be repaid before any death benefits are paid -- Correct Answer
a a a a a a a a a a a a a a
✔✔ B a a
The death benefit is payable minus any outstanding loans plus interest on the loan
a a a a a a a a a a a a a
17) G has a life policy with his wife listen as primary beneficiary. They both die in a car
a a a a a a a a a a a a a a a a a a
accident. They don't know who died first. According to the Uniform Simultaneous
a a a a a a a a a a a a
Death Act where will the policy proceeds be paid?
a a a a a a a a a
A) wife's estate a a
B) g's estate a a
C) g's next of kin a a a
D) wife's next of kin -- Correct Answer ✔✔ B a a a a a a a a a a
G's estate
a
18) G has a life policy with his new wife listed as primary beneficiary and his son listed as
a a a a a a a a a a a a a a a a a a
contingent beneficiary. The whole family dies in the same accident. According to the
a a a a a a a a a a a a a
Common Disaster Clause where will the policy proceeds be paid?
a a a a a a a a a a
A) wife's estate a a
VERIFIED SOLUTIONS.
1) Why does an insurer have a 2-year suicide clause?
a a a a a a a a
A) because the commissioner of insurance requires it. a a a a a a
B) suicide is never paid for in life insurance. a a a a a a a
C) to prevent payment of an immediate claim for a person contemplating suicide.
a a a a a a a a a a a
D) to help an insurer be more profitable. -- Correct Answer ✔✔ C
a a a a a a a a a a a a a
To prevent payment of an immediate claim for a person contemplating suicide.
a a a a a a a a a a a
2) Which of these could the owner of a life insurance policy do when there is a
a a a a a a a a a a a a a a a a
collateral assignment? a a
A) determine how the dividends are used. a a a a a a
B) cash surrender the policy. a a a
C) obtain another loan. a a a
D) cancel the policy. -- Correct Answer ✔✔ A a a a a a a a a
Determine how the dividends are used. a a a a a
3) When only the insurer is allowed to alter an insurance contract, the clause that
a a a a a a a a a a a a a a
provides this is called?
a a a
A) ownership a
B) entire contract a a
C) consideration a
D) incontestable -- Correct Answer ✔✔ B a a a a a a
Entire contracta
4) Which of these is required to reinstate a lapsed policy?
a a a a a a a a a a
A) obtain a loan a a a
B) fill out a new application
a a a a a
C) pay a late fee a a a a
D) provide evidence of insurability -- Correct Answer ✔✔ D
a a a a a a a a a
Provide evidence of insurability
a a a
,5) The insuring clause in an adjustable life policy has all the following EXCEPT?
a a a a a a a a a a a a
A) insured a
B) insurer a
C) amount of premium a a a
D) amount of death benefit -- Correct Answer ✔✔ C a a a a a a a a a
Amount of premium a a
6) Which of the following cannot request or make a change to alter a life insurance
a a a a a a a a a a a a a a a
policy? a
A) the agent who wrote the policy
a a a a a a
B) the policy owner a a a
C) an executive officer of the insurer
a a a a a a
D) a person who has absolute assignment -- Correct Answer ✔✔ A
a a a a a a a a a a a
The agent who wrote the policy
a a a a a
7) Which of these cannot sign or request a change in an insurance contract?
a a a a a a a a a a a a a
A) policy owner a a
B) insured a
C) executive officer of insurer a a a a
D) producer of insurer -- Correct Answer ✔✔ D a a a a a a a a
Producer of insurer a a
8) When the policy owner pays a premium in exchange for the insurer's promise to pay,
a a a a a a a a a a a a a a
what provision is this?
a a a a a
A) consideration
B) entire contract a a
C) insuring clause a a
D) changes -- Correct Answer ✔✔ A a a a a a a
Consideration
9) When the insurer cannot contest a claim after 2 years, that is called?
a a a a a a a a a a a a a
A) suicide clause a a
B) incontestability clause a a
C) entire contract a
D) consideration clause -- Correct Answer ✔✔ B a a a a a a a
Incontestability clause a
,10) Misstatement of age or gender on the application will result in? a a a a a a a a a a a
A) the policy being considered void or cancelled
a a a a a a a
B) return of premiums a a
C) death benefit paid adjusted to fit true age and gender a a a a a a a a a a
D) full death benefit regardless -- Correct Answer ✔✔ C
a a a a a a a a a
Death benefit paid adjusted to fit true age and gender.
a a a a a a a a a
11) What happens if a person returns a policy during the free look period?
a a a a a a a a a a a a
A) the insured may apply for another policy without a medical exam
a a a a a a a a a a a
B) the policy is immediately terminated; the insurer retains the premium for the
a a a a a a a a a a a a
underwriting costs a
C) a refund of premiums minus the number of days the policy was in effect
a a a a a a a a a a a a a a
D) a full refund of all premiums paid is returned -- Correct Answer ✔✔ D
a a a a a a a a a a a a a a
A full refund of all premiums paid is returned.
a a a a a a a a
12) An applicant did not disclose a medical condition on a life insurance application 5
a a a a a a a a a a a a a a
years later that person died due to the non disclosed condition. The insurer will?
a a a a a a a a a a a a a
A) keep all premiums and void the policy a a a a a a a
B) refund all premiums and void the policy a a a a a a a
C) pay the whole amount of the policy to the beneficiary
a a a a a a a a a a
D) pay half of the policy to the beneficiary -- Correct Answer ✔✔ C
a a a a a a a a a a a a a
Pay the whole amount of the policy to the beneficiary
a a a a a a a a a
13) An applicant lied about their age for a universal life policy. The insurer found out the
a a a a a a a a a a a a a a a a
truth at the time of death. The insurer will?
a a a a a a a a a
A) request the beneficiary to pay back the premiums for the correct age before
a a a a a a a a a a a a a
paying the death benefit a a a a
B) refund all premiums and void the policy a a a a a a a
C) pay the policy death benefit to reflect the correct age
a a a a a a a a a a
D) pay the policy as it was issued -- Correct Answer ✔✔ C
a a a a a a a a a a a a
Pay the policy death benefit to reflect the correct age
a a a a a a a a a
14) A policy owner/insured takes a loan of 1/2 the cash value. The owner doesn't pay any
a a a a a a a a a a a a a a a a
interest that accumulates on the loan. Which of these would be true?
a a a a a a a a a a a a
A) dividends are withheld until the loan is paid back a a a a a a a a a
, B) interest is added to the loan annually a a a a a a a
C) interest is deducted from the loan annually a a a a a a a
D) dividends and interest are both withheld until the loan is paid back -- Correct a a a a a a a a a a a a a a
Answer ✔✔ B a a a
Interest is added to the loan annually a a a a a a
15) Which of the following is NOT a non forfeiture option?
a a a a a a a a a a
A) reduced paid up a a a
B) extended term a a
C) cash surrender a a
D) life income -- Correct Answer ✔✔ D a a a a a a a
Life income
a
16) When an insured die with an outstanding loan on the policy which of the following
a a a a a a a a a a a a a a a
applies? a
A) nothing is payable the loan voids the policy's death benefits a a a a a a a a a a
B) the death benefit is payable minus any outstanding loans plus interest on the
a a a a a a a a a a a a a
loan
C) all of the death benefit is paid without reductions
a a a a a a a a a
D) the loan must be repaid before any death benefits are paid -- Correct Answer
a a a a a a a a a a a a a a
✔✔ B a a
The death benefit is payable minus any outstanding loans plus interest on the loan
a a a a a a a a a a a a a
17) G has a life policy with his wife listen as primary beneficiary. They both die in a car
a a a a a a a a a a a a a a a a a a
accident. They don't know who died first. According to the Uniform Simultaneous
a a a a a a a a a a a a
Death Act where will the policy proceeds be paid?
a a a a a a a a a
A) wife's estate a a
B) g's estate a a
C) g's next of kin a a a
D) wife's next of kin -- Correct Answer ✔✔ B a a a a a a a a a a
G's estate
a
18) G has a life policy with his new wife listed as primary beneficiary and his son listed as
a a a a a a a a a a a a a a a a a a
contingent beneficiary. The whole family dies in the same accident. According to the
a a a a a a a a a a a a a
Common Disaster Clause where will the policy proceeds be paid?
a a a a a a a a a a
A) wife's estate a a
