TEXAS HEALTH AND LIFE INSURANCE EXAM
WITH 100% CORRECT ANSWERS
Who has the right to change the beneficiary, obtain a loan or determine how dividends
are treated?
a) The insured
b) The contingent beneficiary
c) The primary beneficiary
d) The policy owner - Answer-Answer: D The policy owner
Aids testing requires?
a) insurer will provide test results to spouse only
b) insurer will provide test results to anyone who request them in writing
c) insured must give written approval
d) insured must give verbal approval - Answer-Answer: C insured must give written
approval
All of the following could be used by insurance company underwriters to determine
acceptability of an applicant for insurance except?
a) medical information bureau
b) high school and/or college GPA
c) attending physician statement
d) inspection report - Answer-Answer: B High school and/or college GPA
Which of the following is obtained by an insurance company to determine the financial
and moral status of an applicant for an insurance policy?
a) Credit report
b) agents report
c) Financial report
d) inspection report - Answer-Answer: D inspection report
In which policy with the automatic premium loan not apply?
a) whole life
b) endowment
c) Limited pay
d) term - Answer-answer: d
Term
When would the automatic premium loan provision go into effect in a life policy? -
Answer-when a policy reaches the end of the grace period with no payment received
,Which of these will not decrease the death benefit in a life policy?
a) extended term non-forfeiture
b) policy loan
c) automatic premium loan
d) partial surrender - Answer-Answer: A extended term non-forfeiture
How long can the reinstatement period be in a life insurance policy? - Answer-5 years
What provision requires the application to be found in the policy? - Answer-entire
contract clause
When a copy of the application used to produce a life insurance policy is also found in
the life insurance policy. What is it called? - Answer-entire contract provision
Which provision in a permanent insurance policy provides for the insured to make sure
the policy doesn't lapse for nonpayment of premium, assuming the policy has plenty of
cash value? - Answer-automatic premium loan
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-Answer: C
To prevent payment of an immediate claim for a person contemplating suicide.
Which of these could the owner of a life insurance policy do when there is a collateral
assignment?
a) determine how the dividends are used.
b) cash surrender the policy.
c) obtain another loan.
d) cancel the policy. - Answer-Answer: A
Determine how the dividends are used.
When only the insurer is allowed to alter an insurance contract, the clause that provides
this is called?
a) ownership
b) entire contract
c) consideration
d) incontestable - Answer-Answer: B
Entire contract
Which of these is required to reinstate a lapsed policy?
a) obtain a loan
b) fill out a new application
c) pay a late fee
, d) provide evidence of insurability - Answer-Answer: D
Provide evidence of insurability
The insuring clause in an adjustable life policy has all the following EXCEPT?
a) insured
b) insurer
c) amount of premium
d) amount of death benefit - Answer-Answer: C
Amount of premium
Which of the following cannot request or make a change to alter a life insurance policy?
a) the agent who wrote the policy
b) the policy owner
c) an executive officer of the insurer
d) a person who has absolute assignment - Answer-Answer: A
The agent who wrote the policy
Which of these cannot sign or request a change in an insurance contract?
a) policy owner
b) insured
c) executive officer of insurer
d) producer of insurer - Answer-Answer: D
Producer of insurer
When the policy owner pays a premium in exchange for the insurer's promise to pay,
what provision is this?
a) consideration
b) entire contract
c) insuring clause
d) changes - Answer-Answer: A
Consideration
When the insurer cannot contest a claim after 2 years, that is called?
a) suicide clause
b) incontestability clause
c) entire contract
d) consideration clause - Answer-Answer: B
Incontestability clause
Misstatement of age or gender on the application will result in?
a) the policy being considered void or cancelled
b) return of premiums
c) death benefit paid adjusted to fit true age and gender
d) full death benefit regardless - Answer-Answer: C
Death benefit paid adjusted to fit true age and gender.
WITH 100% CORRECT ANSWERS
Who has the right to change the beneficiary, obtain a loan or determine how dividends
are treated?
a) The insured
b) The contingent beneficiary
c) The primary beneficiary
d) The policy owner - Answer-Answer: D The policy owner
Aids testing requires?
a) insurer will provide test results to spouse only
b) insurer will provide test results to anyone who request them in writing
c) insured must give written approval
d) insured must give verbal approval - Answer-Answer: C insured must give written
approval
All of the following could be used by insurance company underwriters to determine
acceptability of an applicant for insurance except?
a) medical information bureau
b) high school and/or college GPA
c) attending physician statement
d) inspection report - Answer-Answer: B High school and/or college GPA
Which of the following is obtained by an insurance company to determine the financial
and moral status of an applicant for an insurance policy?
a) Credit report
b) agents report
c) Financial report
d) inspection report - Answer-Answer: D inspection report
In which policy with the automatic premium loan not apply?
a) whole life
b) endowment
c) Limited pay
d) term - Answer-answer: d
Term
When would the automatic premium loan provision go into effect in a life policy? -
Answer-when a policy reaches the end of the grace period with no payment received
,Which of these will not decrease the death benefit in a life policy?
a) extended term non-forfeiture
b) policy loan
c) automatic premium loan
d) partial surrender - Answer-Answer: A extended term non-forfeiture
How long can the reinstatement period be in a life insurance policy? - Answer-5 years
What provision requires the application to be found in the policy? - Answer-entire
contract clause
When a copy of the application used to produce a life insurance policy is also found in
the life insurance policy. What is it called? - Answer-entire contract provision
Which provision in a permanent insurance policy provides for the insured to make sure
the policy doesn't lapse for nonpayment of premium, assuming the policy has plenty of
cash value? - Answer-automatic premium loan
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-Answer: C
To prevent payment of an immediate claim for a person contemplating suicide.
Which of these could the owner of a life insurance policy do when there is a collateral
assignment?
a) determine how the dividends are used.
b) cash surrender the policy.
c) obtain another loan.
d) cancel the policy. - Answer-Answer: A
Determine how the dividends are used.
When only the insurer is allowed to alter an insurance contract, the clause that provides
this is called?
a) ownership
b) entire contract
c) consideration
d) incontestable - Answer-Answer: B
Entire contract
Which of these is required to reinstate a lapsed policy?
a) obtain a loan
b) fill out a new application
c) pay a late fee
, d) provide evidence of insurability - Answer-Answer: D
Provide evidence of insurability
The insuring clause in an adjustable life policy has all the following EXCEPT?
a) insured
b) insurer
c) amount of premium
d) amount of death benefit - Answer-Answer: C
Amount of premium
Which of the following cannot request or make a change to alter a life insurance policy?
a) the agent who wrote the policy
b) the policy owner
c) an executive officer of the insurer
d) a person who has absolute assignment - Answer-Answer: A
The agent who wrote the policy
Which of these cannot sign or request a change in an insurance contract?
a) policy owner
b) insured
c) executive officer of insurer
d) producer of insurer - Answer-Answer: D
Producer of insurer
When the policy owner pays a premium in exchange for the insurer's promise to pay,
what provision is this?
a) consideration
b) entire contract
c) insuring clause
d) changes - Answer-Answer: A
Consideration
When the insurer cannot contest a claim after 2 years, that is called?
a) suicide clause
b) incontestability clause
c) entire contract
d) consideration clause - Answer-Answer: B
Incontestability clause
Misstatement of age or gender on the application will result in?
a) the policy being considered void or cancelled
b) return of premiums
c) death benefit paid adjusted to fit true age and gender
d) full death benefit regardless - Answer-Answer: C
Death benefit paid adjusted to fit true age and gender.
